David Brennan, managing director of LeasePlan UK, believes the Budget has failed to tackle some of the big questions facing fleets.

“Rather than addressing specific issues facing the industry, Alistair Darling has offered a broad Budget, without clear solutions for many of the issues raised in the December Pre-Budget Report,” said Brennan.

“With uncertainty over the future of the government, there is a sense of limbo on key issues, with industry direction on fuel, green technology and transport infrastructure still too vague. This lack of clarity will delay important investment decisions.

“Fleet providers will continue to seek clarity on some wider transport issues until the government announces steps to resolve some of the more fundamental questions.”

Petrol duty and emissions:

“The announcement that fuel duty will rise by 1 pence in April, October and January comes as a disappointment, but not a surprise. There was hope this rise would be stopped altogether, as the impact on businesses that are dependent on vehicles could be significant. Raising the duty incrementally from April suggests the government understands the potential impact, but this still does not go far enough.”

Company car tax:

“With changes to company car tax (CCT) through the exemption of zero-carbon vehicles and halving of CCT for ultra-low carbon cars, the government continues to encourage positive environmental choices. Although this ‘tax-nudging’ is a further step in the right direction, the practical impact for companies is difficult to measure. Employers will still require vehicles to be ‘fit for purpose’ and although technological developments have moved more vehicles into these categories there is still significant development needed to make them mainstream.

Electric cars:

“The Pre Budget Report in December highlighted £30 million of investment the government would make to promote electric vehicles, with the tax breaks for electric vehicles testament to that. However, too many question marks remain over the practicality and functionality of adopting electric vehicles. Until a clear infrastructure is put in place, the innovations manufacturers have made in improving electric vehicles cannot be implemented.

“Despite a green fund of £2billion announced in today’s Budget, and the partnerships with manufacturers to encourage production of green vehicles, the wider infrastructure issue facing the industry has yet to be answered. It is imperative to give businesses the confidence to switch to green technology without affecting business performance. The lack of definitive commitment and funding in this area will hamper both low carbon transport and the wider green economy.”

“This is an ongoing area of focus for LeasePlan, and we take the issue seriously. But businesses must be provided with a solid infrastructure that allows easy recharging and maintenance. Unless this is done swiftly, green engagement by businesses will inevitably be hampered.”

Transport infrastructure:

“On a practical level, the £285 million investment in road repairs will be seen as a positive for the fleet industry. With improved roads and motorways, fuel consumption and maintenance levels improve.”