BVRLA calls for Budget to stimulate eco market
01 July 2015
The British Vehicle Rental and Leasing Association has called on the Government to recalibrate vehicle-related taxes to stimulate the adoption of greener vehicles as part of its pre-Budget submission.
Following the news that chancellor George Osborne is to give a second Budget on 8 July, just months after his last on 18 March, the BVRLA has suggested the Government reverses its decision to end the nil rate band for zero-emitting cars, and extends it until 2016/17. Furthermore, following the news that the Plug-In Car Grant is to change this year the BVRLA has called on the Government to ensure that equally successful incentives are put in place.
In its Budget submission, the BVRLA highlighted how ULEVs made up less than 1% of the total new cars registered in May 2015, despite impressive growth.
Jay Parmar, BVRLA director of policy, said: "Vehicle-related taxes are vitally important to support this growing marketplace.
"The Budget is the opportune moment to give motorists the certainty, stability and financial incentive to choose a low-emission vehicle. Our members operate the greenest and safest vehicles on UK roads, but they're hampered by the current tax regime."
Elsewhere in its Budget submission, the BVRLA called on the Government to reinstate the first-year capital allowances for leased cars. Since 2013, only vehicles that have been purchased outright are eligible for first-year allowances, which provide a financial advantage for cash-rich businesses over less established SMEs.
Furthermore, the BVRLA would also welcome Government incentives for vehicle telematics and driving technology that can better assist journey planning and more fuel-efficient driving, leading to reduced emissions.
Finally, the organisation believes that one of the strongest contributors to economic growth in both the rental and leasing sector and in other UK business sectors delivered by the previous Government was the decision to freeze fuel duty from 2013.
At a time when British businesses are still recovering from the global recession, the association believes that fuel duty should remain frozen, which would provide both consistency and confidence to industry.
Meanwhile, the BVRLA has expanded the training, accreditation and development services that are available to its members.
The association has also appointed Gursh Gill as its learning and development professional. Gill will oversee and implement the new programmes.
The BVRLA said one of its first tasks will be to assist leasing brokers' compliance with Financial Conduct Authority rules. Other services will include helping small and medium-sized rental members who lack their own training resources