BUDGET '09: Little Budget help expected
20 April 2009
Author: Rupert Saunders
BusinessCar's Budget 2009 coverage
Fleets hoping for help in this week's Budget are likely to be let down as the Government concentrates instead on raising revenue to counteract UK borrowing hitting at least £118bn this year.
Scrappage is the big political decision. Fleets will only be affected if RVs are unsettled - hence calls by the BVRLA and ACFO for the scheme to include used cars emitting up-to 165g/km CO2.
"Allowing people to buy newer, but more fuel-efficient, vehicles they can afford will have the Government's desired impact of reducing emissions," said John Lewis, BVRLA chief.
Calls from motoring organisations to defer fuel tax rises (which will be 2% above inflation from April 2010) are likely to go unheeded too. However, delaying the planned 2010/2011 first year VED tax on new cars could stimulate demand.
On the wider front, Nigel May, tax principal at accountant MacIntyre Hudson, is predicting a delay in the 0.5% rise in employer (but not employee) NI, due from April 2011, and a new variable rate Class 1A contribution based on pay bands.
"Currently employers pay a flat rate of 12.8% regardless of how much employees earn but reducing the rate for those earning less will be politically attractive," he said.