Spring Statement 2018

06 / 12 / 18  |  Industry

In the 2018 Spring Statement the Chancellor delivered a positive picture of the UK economy, with “solid progress” being a key theme. The headlines that impact the fleet industry sit within plans to improve air quality.

We support the BVRLA’s call for clarity on company car tax rates beyond 2020 and as we did not get these announced today, we expect to see them in the Autumn Budget.

Let’s take a look at some of the key takeaways…

The Chancellor has announced a consultation on VED tax cuts for low-emission vans, which may lead to beneficial tax rates. This could accelerate the trend towards cleaner diesel LCVs that is already being driven by the introduction of Ultra Low Emission Zones throughout the country, with London the first in 2019.

He has also called for evidence on whether the tax relief for non-agricultural red diesel contributes to air pollution in urban areas.

  • The UK economy has grown for five consecutive years, and has exceeded expectations in 2017
  • The unemployment rate is close to a 40-year low with a joint record number of women in work
  • Half of the £1.7 billion fund for improving transport in English cities was given to Combined Authorities with mayors
  • The next business rates revaluation, which is currently due in 2022, will be brought forward to 2021
  • £25 million has been allocated for the first 5G test beds as part of the commitment to technology driven growth
  • The education secretary will release up to £80 million in funding to help small firms take on apprentices

“LCV fleets are already considering the need for cleaner vehicles, and we can expect increased demand for Euro 6 vans. Under Ultra Low Emission Zone rules any diesel vehicle other than a Euro 6 will attract an additional fee for driving into the centre of the capital. Other cities are considering their own plans, which may or may not include LCVs. Any further tax incentives that would support the move to cleaner vans are welcome.”

Claire Evans
Head of fleet consultancy