SMC joined over 250 members of the BVRLA for their live webinar: 2018 Budget: What does it mean for our industry?
Last month Chancellor Philip Hammond delivered the budget to Parliament, taking place on Monday 29 October 2018. With many annoucements, SMC joined over 250 members of The British Vehicle Rental and Leasing Association to reflect on the future outcomes.
The BVRLA event lasted over an hour and discussed key points which affected the automotive industry on a whole post Budget announcements 2018. The news from the Government and Chancellor Philip Hammond was somewhat positive in terms of fuel duty being frozen for a ninth year giving some signs of confidence to drivers. However company car drivers, fleet decision makers and the leasing industry will be required to wait longer until decsions relating to BIK rates and VED for Vans are made, whilst they focus on more pressing priorities relating to Brexit.
The good news is the wait shouldn’t be too much longer, as it was suggested that the Government was unlikely to make a decision to new BIK rates post 2021 until at the earliest in summer 2019.
As with everything fleet related, our team will be on hand to advise fleet decision makers. The next likely annoucements will be in the Governments 2019 Spring statement around March which should provide further clarity to fleet decision makers for future BIK rates post 2021.
As for the BVRLA’s responses, here’s what they had to say on the budget.
The BVRLA has welcomed the government’s decision to conduct an urgent review into the impact of WLTP on Vehicle Excise Duty and company car tax, but has expressed bemusement at the Chancellor’s failure to use the Budget to bring forward the 2% company car tax rate to stimulate demand for EVs.
BVRLA Chief Executive Gerry Keaney said: “It is great to hear that the Treasury is making plans to remedy any potential tax distortion caused by the transition to the new WLTP emissions standard in April 2020.
“It is vital that fleets and company car drivers are able to plan for the future, confident that they are working with more accurate emissions information and a fairer tax regime that rewards those who choose cleaner vehicles. These revised tax bandings can’t come too soon.”
The webinar has been published on the BVRLA’s YouTube channel which you can watch in full here .
The news albeit it no real news could mean customers who are currently planning or reviewing their future vehicles and BIK tax benefits will still be on the fence as to whether they extend their existing contracts, or opt for cleaner and zero emission technology vehicles and take advantage of the recently updated EV grants.
If you would like to discuss curernt EV grants and vehicle rates books or would like further advice from one of our strategic account managers, please contact us today on.