How does the Budget 2017 affect your fleet?
by Fiona Taylor
Chancellor Philip Hammond announced the Autumn Budget 2017 yesterday – but what does it mean for your fleet?
We have had a look at the key points in yesterdays budget to see how the changes are going to affect your fleet. Budget 2017 will bring some changes – but how will they affect your business?
The freeze on fuel duty will stay in place making it 8 successive years since the last rise. So fuel duty will stay at 57.95 pence per litre.
The Chancellor Philip Hammond said that the freeze will have saved the average car driver £850, and van drivers over £2,100 by April 2019 compared to the plans announced by the Labour party.
Diesel tax hikes
The Chancellor announced that any new diesel cars, which don’t meet the latest standards, will attract extra vehicle tax, and they will go up by one emissions band in the first year. However, diesel vans will be exempt from the rise.
Before the headline writers start limbering up, let me be quite clear. No ‘White Van Man’, no ‘White Van Woman’ will be hit by these measures.”
He went on to say that the proceeds of this rise will go towards a new £220 million @Clean Air Fund’ used to tackle pollution.
No BiK for charging at work
Drivers charging plug-in vehicles at work will no longer be subject to a Benefit-in-Kind charge as of next April. Under current rules, people who charge their personal plug-in vehicles at work are charged a benefit in kind tax, based on the cost to the employer. This is not levied on any company owned vehicles though.
Extra funding for ultra low emission vehicles
This year’s autumn budget set out additional funding for electric vehicles. This included £200m for a new charging infrastructure. The amount will be matched by private investors. The Government will also provide £100m towards the Plug-in Car Grant, which offers purchase incentives.
Other budget 2017 announcements:
- The Fuel Benefit Charge and the Van Benefit Charge will both increase by RPI from 6 April 2018.
- Investment of £300m to ensure HS2 infrastructure can accommodate future Northern Powerhouse and Midlands Engine rail improvements.
- £30m to trial new solutions to improve mobile and digital connectivity on trains on the TransPennine route.
- Tolls on the Severn Bridge will be abolished by the end of next year, as already promised.
How will the autumn budget 2017 affect you and your business? Let us know in the comments below.