Government denies any ‘anti-diesel’ agenda

The Government has insisted that it is “not anti-diesel”, amid concerns from the fleet industry that the Volkswagen Group emissions scandal is negatively influencing taxation decisions.

In last month’s combined autumn statement and spending review, Chancellor George Osborne delayed the removal of the 3% diesel supplement on company car tax from April 2016 to April 2021.

This, he said, was “in light of the slower-than-expected introduction of more rigorous EU emissions testing”.

This prompted some fleet industry experts to suggest he had been influenced by the VW Group emissions scandal.

However, transport minister Andrew Jones sought to “put the VW crisis into perspective” as he addressed delegates at the 2015 BVRLA Industry Conference via video link.

“The Government is not anti-diesel,” he said. “Diesel cars have played, and continue to play, a valuable role in reducing fuel usage and emissions of CO2.”

The Government is facing increasing pressure to tackle air quality after it failed to meet EU limits on NO2 and was ordered by the Supreme Court to create a new air quality plan by the end of this year.

Currently, 38 out of 43 geographical zones in the UK are failing EU air quality standards.

Jones told delegates that “tackling air quality is a priority for the Government”.

“There are at least 29,000 early deaths each year associated with poor air quality,” he said. “This is unacceptable.

“The Government recently consulted on its air quality plans.

“A major important part of the approach is for local action on clean air zones.

“We will continue to work with DEFRA on common standards for clean air zones.

“This is designed to give long-term certainty to the leasing and rental sector.”

Jones added that it was important for Government to influence local organisations to adopt common standards.

“I recognise a plethora of different standards does not help business, so we are working for common standards while allowing local decisions related to air quality,” he said.

Jones also suggested that car clubs have a part to play, stating that he was “happy to promote the benefits” and to “deal with artificial regulatory or administrative barriers to them”, as well as considering “endorsing a car club communications and awareness campaign”.

The Government is “determined to continue to invest in initiatives to tackle emissions problems,” Jones said.

This includes encouraging the uptake of ultra-low emission vehicles (ULEVs) with the Government expecting  almost every car on the road to be a ULEV by 2050.

Jones acknowledged the fleet industry’s buying power. “As buyers of 80% of UK manufactured vehicles sold here you can together affect the use of technology massively,” he said.

Gerry Keaney, chief executive of the BVRLA, highlighted the “strong adoption” of electric vehicles and hybrids by its members – almost twice the penetration of the total sector in terms of growth.

Total average CO2 emissions of BVRLA members’ fleets are currently 118.3g/km, while the average for new orders by BVRLA members is 113g/km. This compares to a national average of 122.1g/km for the last quarter.

“We can be a significant enabler in driving down CO2 and NOx if they allow us to work with them and if they can put in place the right framework to support some of these initiatives,” Keaney said.

“They have not been particularly friendly in terms of how they have treated us for capital allowances, or in terms of benefit-in-kind changes.

“They’re not particularly friendly in terms of what they’ve done with recent changes to vehicle excise duty, but I think there is an opportunity for us to get Government support in terms of where we can help them with this key issue.”