<p> <strong>By Andrew Hogsden, senior manager, strategic fleet consultancy, Lex Autolease</strong></p> <p> With cost control remaining a top priority for many fleets, I’d like to see the 2014 Budget deliver some additional cost-saving measures that will benefit businesses of all sizes.</p> <p> The Chancellor’s 2013 Autumn Statement brought welcome relief with the announcement that a proposed rise in fuel duty will be frozen for the remainder of this Parliament.</p> <p> While it would be reassuring to see this commitment cemented in the Budget, I’d like to see the Chancellor extend the price freeze into next year or, better still, reduce fuel duty to help bolster the economic recovery.</p> <p> Fuel prices continue to put significant financial pressure on businesses.</p> <p> As a result, we’re seeing more clients look to smarter vehicle choice as a more sustainable way to manage costs.</p> <p> The continuation of low CO2 tax incentives will certainly promote uptake of low emission vehicles.</p> <p> In an ideal world, I’d like to see legislation on first-year capital allowance for low emission vehicles extended to leasing companies.</p> <p> In addition, companies are keeping a close eye on the Government’s stance on electric and plug-in vehicles.</p> <p> It has already announced plans to invest hundreds of millions of pounds over the next two years to support uptake.</p> <p> It would be beneficial for the Budget to detail where the investment will be made.</p> <p> Providing incentives for manufacturers to develop new vehicle technology may account for some expenditure, but for electric vehicles to be a sustainable and mainstream choice for fleets there needs to be a serious commitment to developing the infrastructure. </p> <p> And in light of some encouraging signs of an economic recovery, I wouldn’t be alone in hoping to see an extension of the temporary increase of the Annual Investment Allowance threshold beyond 2015.</p> <p> The two-year initiative has given businesses the opportunity to make significant investments in plant or machinery, freeing up capital to support growth and in turn helping to stimulate the economy.</p> <p> An extension of this initiative has real potential to give momentum to the upturn – something we could all benefit from.</p>
Budget: Reduce fuel duty to bolster economy
- By Fleet News
- |
- 12 March 2014
Login to comment
Comments
No comments have been made yet.