Following the announcement that the Pre-Budget Report will published on Monday 24 November, fleet management software company, Jaama has called for action to restore confidence within the motor industry.
Chancellor of the Exchequer, Alistair Darling must propose real action in the Pre-Budget Report to stimulate business and consumer confidence as recession begins to grip the UK and global economies, says Jason Francis, managing director of Jaama.
Amid warnings from economic experts that the UK economy is in ‘meltdown’ and unemployment could reach the three million mark, Mr Francis said:
“The Pre Budget Report on Monday, November 24 is the ideal opportunity for the Government to raise confidence. It must not take any action on that day or in the forseeable future that will leave people out of pocket.”
Mr Francis spoke out after receiving an email communication from 10 Downing Street in response to a website petition calling for fuel duty reductions. He signed the summertime petition when fuel prices were reaching record levels along with more than 304,000 other people.
The response from the Prime Minister’s office said that there would be “no increase n fuel duty this year”. Number 10 added: “Successive decisions by the Government not to increase fuel duty mean that it is now 17 per cent lower in real terms than in 1999.”
Mr Francis said: “Not only should fuel duty not be increased in the Pre-Budget Report, but the Chancellor should commit to current levels being held at least until there is economic recovery and that is predicted to be 2010. Fiscal stability and help with no nastly shocks is what is required.”
Motor industry Pre-Budget Report content speculation centres on the possibility of the Chancellor performing a U-turn on Vehicle Excise Duty rises due on April 1, 2009 and the expectation that he will announce the final details on changes to corporation tax rules on business cars, which are due to be introduced on the same date.
Mr Francis said: “Cost-conscious fleets are now reviewing their company car choice lists in the light of the new corporation tax rules that mean there are cash savings for cars with emissions below 160 g/km. However, there are a number of unknowns, not least the treatment of rental cars, that need clarification.
“Meanwhile, a partial or complete abandonment of VED increases will not only give help to cash-strapped organisations and consumers, but could give a partial boost to the depressed residual values of higher emission defleeted company cars.”
