Budget 2016: LeasePlan publishes responses
Capital allowance on company cars:
In response to the changes on capital allowances and the commitment to CO2-based Company Car Tax until 2012, LeasePlan UK's managing director, Matt Dyer, said: “As we know technology has been outpacing targets where emissions are concerned for a number of years. The Chancellor has now caught up and reduced the Capital Allowances on Business Cars accordingly and by continuing to base Company Car Tax on CO2 emissions until 2021-22 he's setting a clear intent for policy setters and motorists to adopt greener cars.”
Commenting on George Osborne’s Budget announcement that HS3 and the Manchester to Sheffield tunnel have got the ‘green light’, Matt Dyer said: “To hear that the Chancellor is powering ahead with a commitment to further infrastructure improvements, especially Crossrail 2 is encouraging for industry. With the current Crossrail link nearing completion, HS3 and the Manchester to Sheffield tunnel getting the green light, we are heading in the right direction to connect our British cities.
“However, even though the Chancellor has pledged £50m Pothole Action Fund for England and £130m to repair roads and bridges from storm Desmond and Eva, there is still an awful long way to go in repairing Britain’s decrepit and pothole-ridden roads.”
Freeze on Fuel Duty
With regards to the fuel duty freeze, Matt Dyer commented: “It's reassuring to hear that the UK economy is on course to be the fastest growing economy in G7 this year. The automotive industry accounts for over £8.5bn to the economy and in 2015 the leasing industry accounted for half the number of new cars registered on the road.
“We are extremely surprised by today’s fuel duty freeze. This is a welcome boost to UK households and businesses saving an average of £75 per driver. Not only will this help UK motorists, it will also be a continued reprieve to those who work in logistics, with light commercial vehicles expected to save an estimated £270 per year.”