Keith Allen, managing director of ALD Automotive, comments on the 2009 Pre-Budget Report:

 

“The chancellor’s decision to increase employer and employee National Insurance contributions by 0.5% from April 6, 2011 on top of an already announced 0.5% increase will impact on the entire company car community and those who take a cash alternative in lieu of a vehicle.

“With the rise in NIC coupled with the continuing tightening of company car benefit-in-kind tax rates over the next tree years from April 6, 2010, it is imperative that all businesses review their fleet strategies.

“Clearly company car choice lists should be compiled around the total cost of ownership (TCO) of low emission vehicles.

“However, businesses and their drivers should also review their cash alternative calculations.

"With the ever-increasing number of low emission cars arriving in the marketplace, it maybe that some employees that are presently taking a cash alternative would be financially better off - and so will their employers - opting back into a company car.

“There has always been a focus on cost management and the recession has intensified the debate.

"But this year’s Pre-Budget Report means that cost will remain top of the agenda for the foreseeable future.

“As a result of the Pre-Budget Report, more and more companies will endorse the value of TCO programmes and should review their fleet and funding strategies.

“Change brings opportunities and we are seeing increasing demand - and the Pre-Budget Report will further encourage inquiries - for help and advice from our AutoSolutions team, a specialist division within ALD consisting of experienced analysts, experts in the fields of vehicle funding and fleet choice lists and the deployment of cost effective and practical car policies.”