The BVRLA has rolled out its #SeeTheBenefit campaign further, targeting the new Chancellor ahead of next week’s Autumn Statement.

The BVRLA campaign urges the Chancellor to support the uptake of electric cars by keeping BiK rates low and giving foresight beyond the current 2024/25 cut-off

The campaign launched this summer, pushing for Benefit-in-Kind rates for electric cars to be kept as low as possible for as long as possible, supporting the vital salary sacrifice market.

It’s now briefed dozens of MPs at a drop-in event at the Houses of Parliament – which was synchronised with the arrival of more than 160 letters from fleet operators and industry professionals, calling on the Chancellor to keep tax rates on electric company cars low.

Chief executive Gerry Keaney explained: “Low company car tax rates are pulling people into cleaner vehicles and accelerating our progress to net zero. To maintain the trajectory towards the Government’s 2030 phase out target, we need clarity on future rates and they must remain as low as possible for as long as possible.”

The BVRLA has also written to the Chancellor this week in an open letter that included signatures from trade bodies and NGOs such as the Association of Fleet Professionals (AFP), Energy UK, EV100, Hospitality UK and REA.

Numerous salary sacrifice providers have also added their names, including Alphabet, Arnold Clark, Novuna Vehicle Solutions, Octopus Electric Vehicles, Ogilvie, Tusker and Zenith – who together could roll out electric vehicles via salary sacrifice to more than two million eligible employees.

The co-signers added that it’s vital the Government provides much-needed clarity for corporate fleets on BiK rates beyond 2025, supporting not only salary sacrifice uptake but also net zero plans.

Currently, BiK tables have only been published up until 2024/25, leaving businesses and employees with no indication of what the rate will be for 2025/26 and beyond.

Claire Evans, fleet consultancy director at Zenith Vehicles, commented: “Setting appropriate Benefit-in-Kind levels for electric vehicles has been an overwhelming success in driving the growth in uptake of both the salary sacrifice and company car schemes. At Zenith, more than 85% of salary sacrifice orders are for electric vehicles, with four in five of those coming from drivers who are new to taking a company car.

“This is why we support the BVRLA demand for the Government to end the uncertainty and commit to keeping BiK levels appropriately low from 2025. This will incentivise the next cohort of potential EV drivers who, on top of facing inflationary pressures, are less likely to be able to charge at home, and therefore face higher charging costs associated with the public charging network.”

Jon Lawes, MD at Novuna and BVRLA chair, added: “Retaining low BiK rates and removing the uncertainty around company car tax bands will give businesses confidence in their ability to meet net zero deadlines.”

The AFP, which has backed the campaign, has already warned that increasing BiK rates too quickly would potentially affect rates of adoption by fleets and even possibly push people back out of electric company cars into private petrol or diesel alternatives. It’s called for a “fair and equitable approach over time”.

Fleet operators and industry stakeholders can also lend their support to the #SeeTheBenefit campaign, via a simple form on the BVRLA website, amplifying the collective voice of the sector. The pre-written letter will be sent to their local MP, urging them to back the campaign.