Mark Biggs, corporate services director at Arval comments on the PBR:

Low carbon technologies
"We welcome the Chancellor’s continued commitment to low-carbon technologies which we hope will deliver cleaner vehicle choices.

As a result, fleet providers have a critical role to play in advising customers of the options available and associated implications.

It is also essential that fleet operators remember that some measures announced at previous budgets, such as first year Vehicle Excise Duty rates, will soon be introduced.

Electric vehicles
"The Pre Budget Report provided a clear incentive for companies to consider adding electric vehicles to their fleet.

However, fleet managers must fully assess the practicalities of using such vehicles before introducing them.

While company drivers of electric cars will be exempt from Benefit in Kind tax for five years and electric vans benefit from 100% writing down allowance it remains essential that companies take a total cost of operations approach to vehicle selection in order to make the right decisions.

Company car tax
The announcement that a new CO2 banding system will be introduced from April 2012 is a clear response to the improved range of lower emitting vehicles now available and is likely to encourage the uptake of cars emitting less than 100g/km.

Proposed changes to company car tax banding highlight that fleet managers must continue to incorporate taxation and environmental performance into a holistic approach to running a company car fleet.

Fuel
With many companies still feeling the impact of the economic downturn it will come as positive news that no further fuel duty rises were announced by the Chancellor.

However, with an increase to fuel duty already planned for April 2010 there is no room for complacency as drivers and companies must continue to manage fuel usage and control costs.

Fuel Benefit Charge
Whilst the increase in the fuel benefit charge may appear to make free fuel a less attractive benefit, employees who continue to receive free fuel as part of an overall benefits package should regularly calculate the tax efficiency of the benefit."