Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt BUDGET '09: Little Budget help expected
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

BUDGET '09: Little Budget help expected

Date: 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.