Budget 2010: Arval response
The phased approach to the previously planned rise in fuel duty, with the now smaller fuel price rises happening in April and October 2010 and January 2011, may come as positive news for many UK businesses that are still feeling the effects of the economic downturn.
Nevertheless, drivers and companies must continue to manage fuel usage effectively as a means of controlling their costs.
Low carbon technologies
We welcome continued financial support to back low-carbon industries and hope that this investment will have a favourable impact on the automotive sector, contributing to the continued delivery of cleaner vehicle choices.
With the Government's continued commitment to low-carbon technologies allied to the rapid advances that we have seen from the manufacturers in recent years, fleet providers must keep on top of the varied vehicle selection options available in order to effectively advise their customers.
Electric and ultra-low emission vehicles
The new reduction in the taxable Benefit in Kind for drivers of ultra-low emission vehicles is a clear incentive for business drivers to make a sustainable vehicle choice. However, fleet managers must fully assess the practicalities of using such vehicles, and the constraints of limited choice, before introducing them. It remains essential that companies and their drivers take a 'total cost of operations' approach to vehicle selection in order to make the right financial decision.
After a winter of extreme weather conditions and the resulting increase in the number of potholes on the UK's roads, the £250m allocated to maintaining the road network, including £100m that the Chancellor has allocated to repairing local roads, represents a positive step in reducing vehicle maintenance costs for some fleets as well as making many journeys easier for business drivers.