The British Vehicle Rental & Leasing Association (BVRLA) has written to HM Treasury ahead of the Spring Budget to outline what the Chancellor must do for the vehicle rental, leasing and fleet sectors to support recovery in the wake of the pandemic.
Together these sectors spend over £30bn a year upgrading fleets, purchase 83% of vehicles made and sold in the UK, support almost half a million jobs, and contribute £49bn a year to the UK economy.
In light of this, the BVRLA is calling for long-term tax certainty in the Budget. In particular, it urged the Chancellor to freeze Vehicle Excise Duty until April 2022, clarify company car tax rates up to 2025-26, and expand green investment tax allowance.
‘This Budget is an opportunity for the Chancellor to introduce measures that will give the fleet industry the confidence to invest, create jobs, and support economic recovery,’ said BVRLA chief executive Gerry Keaney.
‘We need a long-term perspective on tax to combat uncertainty, support for the hard-hit rental sector, and some creative thinking on tax allowances that can unlock investment in green technology.’
‘2021 will continue to be tough and the Government will need to extend further support to businesses,’ he continued.
‘Fiscal support is crucial and providing clarity, certainty, and creative incentives are vital to that mix. This will enable fleets to take important decisions that will help to make 2021 a year of recovery.’
Image: Cubankite / Shutterstock.com.