22 Oct 21
News

Concrete future tax rates will electrify UK roads, not zero-emission targets

David Bushnell, Principal Consultant, Alphabet (GB)

The UK Government’s Net Zero Strategy has done nothing to ease the fleet industry’s concern about a lack of clarity on future tax rates for company cars, says Alphabet, and it’s a barrier to the electrification of UK roads.

Alphabet, the fourth largest global provider of leasing and business mobility, is concerned that the UK government has failed to address the main issue that is crucial for the fleet industry and the success of meeting zero-emission targets.

Following the release of the UK’s Net Zero Strategy document on Tuesday, David Bushnell, Principal Consultant, Alphabet (GB), commented: “While the government’s Net Zero Strategy is a welcome step in the right direction, the fleet industry needs certainty, not a further consultancy. Concrete future tax rates for company cars are needed now to empower decision makers to make the change to electric with confidence, and not be hit down the line by a jump in taxation. Not only does this support fleet buyers with future planning, particularly those currently locked into petrol or diesel fleet contracts, but it also helps increase company car drivers, preventing people from opting for cash. This is essential to feed the used car market and ease drivers leasing their own cars which may not be carbon efficient. As the biggest buyers of electric vehicles, tax certainty is crucial for the fleet industry, and it’s this that will be the driving factor to the success of electrifying our roads.”

Authored by: Alison Pittaway