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Budget 2013: Reaction from the BVRLA

Date: 20 March 2013   |   Author: Jack Carfrae

BVRLA chief executive John Lewis said of the new benefit-in-kind tax thresholds: "This decision to rethink the benefit-in-kind thresholds on low-emission company cars will ensure they remain an attractive proposition for drivers.

"The market for plug-in vehicles is growing but confidence in this new technology, particularly the costs involved, remains fragile. This move will reassure thousands of potential drivers." 

Addressing first year writing down allowances, he said: "Thousands of businesses, particularly SME's, rely on leasing to acquire their cars, in many cases because they can't raise the finance elsewhere.

"This decision to remove 100% First-Year Allowances won't stop them leasing, but it will result in them choosing cheaper cars with higher CO2 emissions.

"In effect, the government is hindering the momentum towards greener motoring. We think overall car emissions in the UK could rise as a result over the next year.
"The government's decision to rethink the benefit-in-kind thresholds on low-emission company cars will make them a more attractive proposition to drivers, but there is no point doing that if companies don't offer staff these vehicles in the first place."
"We believe that this move unfairly discriminates against the leasing industry and breaks European Commission rules on low-carbon incentives."

In relation to AMAP rates, he said: "Unfortunately the grey fleet remains a grey area for this government.

"The government actively promotes greener road transport through the VED and company car tax regimes, while incentivising staff to drive extra work miles in their own gas-guzzlers. This is a glaring blind spot in an otherwise environmentally-focused tax regime." 

Finally, he spoke about fuel duty: "This is almost becoming a no-brainer. With the economy flirting with recession and household incomes still falling in relation to inflation, the government just cannot afford to price businesses and households off the road."