Industry leaders have been quick to respond to the Budget. Here they give their responses to the three key industry issues affected by the Chancellor’s plans.

Fuel duty

Ross Jackson, managing director of Fleet Operations: “The Chancellor’s decision to pursue an agenda of regular fuel duty increases is another stealth tax at a time when fleets, company car and van drivers, and private consumers can ill-afford the cost burden.”

John Lewis, chief executive of the BVRLA: “The Government is happy to bail out manufacturers and bankers who make vehicles and lend you money to buy them, but it takes perverse pleasure in punishing anyone who actually wants to use one and help contribute to the UK economy.”David Brennan, managing director of LeasePlan UK: “Being able to travel is a vital ingredient in keeping business going. The fuel duty rises will be a disappointment to many
businesses.”

Phil Moorhouse, managing director of Northgate Vehicle Hire: “September’s 2p a litre rise on top of the April increase at a time when all business costs are under tremendous pressure is, in our view, ill-advised.” 

Mark Sinclair, director of Alphabet: “If it allowed motorists to enjoy more of the benefit of lower oil prices there would be more vehicle use, and therefore more economic activity, compared with its strategy of continually putting the squeeze on pump prices.”

Car scrappage scheme

Julie Jenner, chairman of ACFO: “We are disappointed that the scrappage scheme is limited to new cars and vans and has no environmental component that encourages the uptake of low emission vehicles.”

Ross Jackson: “Second-hand values of existing cars are likely to suffer as some motorists take advantage of the scrappage scheme. Thus the scheme will prove to be a cost-burden for many, particularly fleets.”

John Lewis: “Unfortunately, our ministers have chosen to follow a flawed model, which will damage the country’s used car industry while boosting imports of foreign-made cars.”
Alan Lunt, finance director at Lloyds TSB Autolease: “The restriction to new vehicles is disappointing for the leasing industry and the used car vehicle sector.”

John Given, group sales director at Manheim: “The scrappage scheme could reduce our lower value part-exchange volumes coming into Manheim Auctions, but we do not believe the impact will be significant.”

Jason Francis, managing director of Jaama: “The launch of a scrappage scheme in a bid to kick-start new car sales is a big mistake and is hugely flawed in its logic.”

Company car tax

Julie Jenner: “We welcome the early clarification of the 2011/12 company car tax changes, which means that fleets and drivers can take the measures into account when making vehicle choices.”

Andrew Leech, business manager at Mycompanyfleet: “With the new green accelerator reforms to the BIK company car tax system clearly signalling the way the Government wants fleet buyers to go – towards ever greener and cleaner vehicles – selecting the right vehicles is going to be crucial.”

David Brennan: “The Government seems committed to removing any final barriers to greener fleets – a commitment we wholeheartedly share.”

Andrew Hogsden, senior tax consultant at Lloyds TSB Autolease: “Companies which fail to review their policies could see major impact on their bottom line.”

Mark Sinclair: “The proposed abolition of the 10% BIK category for sub-120g/km cars is a reflection on industry’s success in delivering attractive products in this sector. Fleets should not be put off by this move, as the current structure still has three years to run and the wholelife cost profiles of sub-120g/km cars, especially, remain very attractive to businesses seeking to mini-mise costs.”