Spring Budget 2023: AFP lobbies for key fiscal changes in updated Tax Manifesto

A new Tax and Regulation Manifesto is now out from the Association of Fleet Professionals (AFP), urging government action on key changes such as greater support for electric vans and the introduction of a charge point regulator.

The manifesto shows where taxation of fleets and mobility needs changing or developing to give effective incentives, greater certainty and more fairness

Published ahead of the Spring Budget on 15 March, it updates the first edition of the document, created almost two years ago, and expands the list of points from 13 to 21.

Chairman Paul Hollick said the manifesto represents the AFP’s core thinking on areas where change or definition is required to enable businesses to move forward with their fleet and mobility plans faster and more effectively.

It specifically tackles practical issues that fleets are encountering when it comes to car and van electrification – reinforcing the industry body’s view that the Government needs to do a lot more to support the sector, especially when it comes to light commercial electric vehicles.

Other key items in the new version include alignment of public charging VAT with home charging at 5%, tax breaks for hydrogen use and the support of community charging projects to encourage local charger installation.

Hollick added that the manifesto was the result of several months of work by the AFP’s Future Mobility Steering Committee.

“We’ve been having wide-ranging discussions with our members and other interested parties about developing our original ideas in areas where we believe that the taxation of fleets and mobility needs changing or developing in order to create effective incentives, greater certainty and more fairness.

“Of the 21 points we suggest, several could be implemented quite easily, almost at the stroke of a pen. Others, such as the need for discussions around a road tolling plan, are very much strategic and part of longer-term shifts in policy.

“The results, which we believe are constructive, realistic and thought-provoking, are contained in this document. We’re releasing the manifesto now, just ahead of the Spring Budget, because this is when discussion around policy and fiscal measures affecting fleets are at their peak. We want the document to spark as much discussion as possible.”

The 21 points are:

  1. Clean Air Zones should be co-ordinated nationally
  2. The “available to use” rule needs updating
  3. A clear definition of occasional private use for cars is required
  4. Home working definition and concessions should be extended
  5. Road tolling needs to be clearly signposted
  6. Parking costs should be linked to shared mobility and public transport solutions
  7. Inner city parking needs to be improved.
  8. Tax breaks are needed for employees taking a mobility solution…
  9. …and for shared and low carbon mobility
  10. … and for hydrogen
  11. Clear signposting of EV initiatives is required
  12. More support for electric vans
  13. A national kerbside charging strategy is essential
  14. Move public charging VAT to 5%, in line with home charging
  15. … and VAT should be removed from home charger installation costs
  16. The isolator issue on home charger installations needs to be resolved
  17. Easy access to get charge points fitted
  18. Charge point regulation
  19. Review of the AER
  20. Actual Cost definition for electric vehicle charging reimbursements
  21. Community charging project

Hollick continued: “What we hope to see now is that the manifesto will be considered by the fleet and mobility sectors and to hear the reaction from all parties who have an interest. It is by no means a fixed document and we are very much open to further ideas and refinements.”

The AFP’s Tax and Regulation Manifesto 2023 can be downloaded here.

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.