Autumn Statement: Important news for fleet owners and managers

Yesterday, Chancellor George Osborne released the Autumn Statement and Spending review. Some of the changes will be affecting fleet owners and managers directly including increased transport spending, insurance changes and more support for ultra-low emission vehicles.

So here at insureFLEET, we have put together this helpful summary detailing the main points that you should consider.

Bik Levy:

Headline news for fleets was the announcement of the delay in the removal of the current diesel surcharge on Benefit in Kind car tax, which was set to finish as of April 2016. Whilst, the levy will be dropped from April 2021 and the Government says there should be new EU-wide testing procedures to ensure diesel vehicles meet air quality standards under real-world conditions. It’s estimated that the extension will raise an additional £1.36bn in revenue over five years.

Increase support for ultra-low emission vehicles:

There has been £600m being put aside to support the market and manufacturing of ultra-low emission vehicles; alongside with a target of 25% of European EV’s being built in the UK. This is said to save 65 million tonnes of carbon, as well as helping with air quality issues. This is a step towards their target of 100% zero emission vehicles sales by 2040.

Transport and infrastructure:

There will be a £15bn investment in resurfacing over 80% of the Strategic Road Network, with 1,300 miles of additional lanes planned to be built. This is being funded by the Roads Funds which was announced during the Summer Budget with revenue raised from Vehicle Excise Duty from 2020-21.

While in London, there will be an £11bn investment to deliver: Crossrail, new London Underground trains, station upgrades, new buses and a network of Cycle Superhighways. In Kent, they will be getting an £250m lorry park to reduce the pressure on local roads using Operation Stack. Lastly, there will be an £250 ‘permanent pothole fund’ will also be established over the next five years.

Insurance changes:

The Government said that they are intending to introduce measures to end the right to cash compensation for minor whiplash injuries. Further details will be consulted in the New Year.

Mr Osborne said: “We’re going to bring forward reforms for the compensation culture around minor motor accident injuries. This will remove around £1 million from the cost of providing motor insurance. We expect the industry to pass on this saving so motorists see an average saving of £40-50 per year off their insurance bills.”

These are the key points that we thought will be affecting you from the new autumn statement. insureFLEET is committed to finding you the best deal on your fleet insurance and arranging a host of other benefits including fleet breakdown cover and roadside assistance. Any enquiries or a quick quote, please call us on 0333 202 3173 or click here to request a free call back from our team at a time to suit you.