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How Does The Emergency Budget Impact Fleets?

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On Wednesday 8th July, Chancellor George Osborne announced details of his post-election Emergency Budget.

As to be expected, there was a big focus on tax, benefits and housing. But what does the budget mean for fleet orientated businesses and the transport industry as a whole?

George Osborne reviled a "new roads fund" and pointed out that in the last 25 years France had built more than two and a half thousand miles of motorway - while Britain only managed 300.

New roads will be paid for by vehicle excise duty as it was confirmed that the tax paid on people's cars will only be used on roads offering a "fairer tax system for motorists".

Vehicle excise duty will be overhauled from 2017 due to figures showing that??three-quarters of all new cars are exempt.

The open letter written by campaigners from the FairFuelUK organisation this week warned the government that they would risk "sabotaging" the economic recovery if there was an "inflation based fuel duty rise" did not fall on deaf ears.

The Chancellor addressed the issue directly by saying??"I can confirm that there will be no changes to the plans for fuel duty I set out in March, therefore I can also confirm fuel duty will remain frozen this year."

Upon hearing this news, FairFuelUK tweeted: "The Chancellor has listened."

There was also an announcement of ??30-million funding for transport in the North of England. Cities and counties will be given even more control over local transport and will have more responsibility for setting out policy and investments.

It was established that ??14 million will be handed to local road improvement??projects, including ??5.5m for maintenance and the upgrade of the Swanswell Viaduct in Preston.

There has also been an extension of the first compulsory MOT test from three to four years, which will have an impact on both employers and employees. This means Fleet Managers may need to take additional measures to ensure that they remain compliant and uphold their duty-of-care obligations. You can read more about Fleet Compliance by click here.

The Government will publish a second road investment strategy by the end of this parliament.

What do you think of the changes affecting the transport industry from the Emergency Budget? Let us know in the comments section below...

Scott Hutchins is Vice President of Sales in the UK for Navman Wireless and is a contributor to the Navman Wireless blog. He has worked with telematics since 1999 and covers a whole host of topics regarding a range of issues from across the industry.??


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