Boom or bust? Fleet Voice
Fleet Voice Column. Wednesday 10 March 2010
If you watch the news, you cannot have failed to notice that Portsmouth of the English Premier League is currently in big financial trouble. In fact it is so bad they are in administration and will be deducted nine points when the Premier League board meets next.
Sitting at the foot of the current table was never going to help to find a new buyer but then, from out of the blue, comes the magic of the FA Cup
Portsmouth played Birmingham City on Saturday past and thoroughly deserved their 2-0 win. But will they get any money for their inspiring cup run?
Pompey have earned £607,500 in winnings and broadcast fees after beating Birmingham to reach the semi-finals but the problem is that they are in administration and any club that finds itself in this position has to seek approval from the FA to keep cup winnings.
Hopefully Portsmouth’s appeal will be successful or romance may be gone forever from cup competitions.
From one budget to another, yes the UK budget looms as we are now well into March. There is also a general election hanging over us as well, but what will that mean for you and your fleet?
The budget could well focus on ‘green cars’ such as the electric push the Government is behind at present. The best option for the chancellor would be to explain what he is prepared to do for fleets and how the Government will support such a scheme for early adopters.
In recent weeks the Government has claimed that it will give a 100% first-year allowance for companies purchasing electric vans. This allowance enables firms buying one of these vehicles to offset their full cost against their corporation tax bill in the first year. (More information can be found on the DfT website)
I am sure many of you would like to know more as Fleet Voice believes that this could prove to be a very popular scheme.
This would also be a very popular measure to the van makers as sales have been on the slide and the industry could do with a shot in the arm like this electric incentive.
Will the Government change its policy on zero tailpipe emission vehicles and not just electric ones?
We will have to wait and see, already this budget looks a very important one for all of your fleets.
The BVRLA (British Vehicle Renting And Leasing Association) is also making its case heard as it fights for your rights. In a letter it has submitted to the Government, the organisation has asked for immediate removal of the unjust 3% diesel supplement from Benefit-in-Kind tax.
The association claims, “Removal of this historically out-of-date pollution-related penalty would accelerate further corporate adoption of these vehicles and help to push company car emissions even lower”. This is a valid point.
Other issues to be cleared up on this budget will include advisory mileage allowance payments, improvements in the van CO2 database, clarification on road pricing and whether it will replace road tax or not.
So will this budget matter? Yes, it could also determine whom you vote for but Fleet Voice is not here to shout about party politics.
Budget concerns hang over Portsmouth Football Club like a dark cloud, Fleet Voice for one, hopes that this 2010 Budget will not bring doom and gloom to the fleet industry.
Simon McBride
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