“The Pre-Budget Report announced today (Wednesday, December 9) confirms ACFO’s view of what was probable, and provides the relative stability for the sector that we asked for when we met with the Exchequer secretary in October.
“With powerful tax incentives for take-up of electric cars and vans from April next year, and the confirmation of further tightening of company car BIK tax from April 2012, the Chancellor is driving fleets and company car and vans drivers ever further along the ‘green’ route.
“ACFO has for many years been advising members and all fleet operators that to keep operating costs under control low emission vehicles were the optimum choice. Fleet best practice clearly supports a positive approach to use of low carbon cars and vans.
“Fleet decision-makers and drivers who continue to fail to heed these warnings will not only see their tax bills rise but they will also see their fuel bills soar as fuel costs increase. Low emission vehicles deliver first-class MPG, reduced costs and lower tax charges.
“Meanwhile, the significant increase in the fuel benefit scale charge from next April should result in almost all employees giving up this perk. Despite regular increases in this tax and a wide range of experts advising that it is generally much more cost-effective for employees to pay for fuel used privately out of their own pocket, thousands of drivers continue to be in receipt of company paid for fuel.”