Ahead of the Government’s Spring Statement tomorrow, the fleet and leasing industry has urged the Chancellor to support the growing momentum for zero-emission vehicles, while there are also continued calls for action on fuel duty.

The BVRLA has written to the Chancellor to call for action on electric vehicles – in particular on the Benefit-in-Kind (BiK) rates to address the current lack of foresight

While the Spring Statement is only expected to provide an economic update as well as some policy updates, the BVRLA has already written to the Chancellor to call for action on electric vehicles – in particular on the Benefit-in-Kind (BiK) rates to address the current lack of foresight, which risks undermining the vital company car and salary sacrifice markets.

The association has been engaging with HM Treasury extensively on this matter, urging them to avoid any ‘cliff edge’ tax increases and maintain tax incentives for as long as possible.

Elsewhere, the BVRLA has warned that the disparity between VAT rates on domestic and public electricity supplied for vehicle charging remains a significant concern to its members. The association’s Spring Statement submission calls for an equalisation of those respective rates – at 5% – to increase the affordability of the public charging network – an issue also raised by the FairCharge campaign.

Beyond that, the BVRLA has called on the Chancellor to:

• Start conversations with the industry on road pricing
• Increase support for zero emission vehicles for rental operators and car clubs
• Introduce new measures to support the transition to shared mobility
• Reform capital allowances to work for the sector

Meanwhile, the motoring sector has urged the Government to cut fuel duty in the spring statement to reduce the burden of soaring fuel prices on consumers and businesses.

This includes the Petrol Retailers Association (PRA) which says that with fuel and energy prices having soared, it’s crucial that consumers and businesses do not bear the brunt of these skyrocketing costs any further.

Executive director Gordon Balmer said: “The PRA urges the Government to follow the example of Ireland in cutting fuel duty to reduce the burden of soaring fuel costs. The Government is well positioned to implement this measure as the high cost of fuel has seen VAT revenue increase, which would help mitigate the cost of cutting fuel duty.”

Finally, the Institute of the Motor Industry (IMI) has urged Rishi Sunak to address funding for skills training in the Spring Statement.

Steve Nash CEO of the automotive professional body highlighted the urgent need for improved funding for skills training.

“There’s no question the Chancellor has a number of pressing issues it’s hoped he will address in the Spring statement. But the IMI’s latest analysis of vacancies in the automotive sector highlights just how critical the skills situation is.  We have been calling for the Government to inject funding specifically into training to work on electric vehicles; but frankly right now businesses need help to bring on talent right across all areas of skills.

“More needs to be done to help employers upskill their workforce. Retraining those currently out of work also needs to be addressed as a matter of priority. The massive advances in technology in automotive offer a wealth of opportunity; it’s critical therefore that the training is available for individuals who want to be part of what is an incredibly exciting sector.”