Government's Spring Budget 2020

Budget 2020 - what it means to you

Chancellor of the Exchequer Rishi Sunak delivered his first Budget speech today (Wednesday, March 11, 2020) and he ‘splashed the cash’.

It was also the first - and much delayed - Budget of the Government led by Prime Minister Boris Johnson.

Indeed it was the first Budget proper since October 29, 2018. Since then there has been a March 2019 Spring Statement, a change of Prime Minister, a general election, lengthy Parliamentary debates around Brexit and two changes of Chancellor with Mr Sunak in post for less than a month.

The Budget, which was huge in terms of overall content and will be known as the ‘coronavirus Budget’, was the first of two this year. This Budget was the one delayed from last year, and then there will be one in the autumn as scheduled.

Below we highlight the Chancellor’s key 2020 Budget measures that will impact on the company car and van sector and the wider motor industry.

Government's Spring Statement 2019

The Government’s Spring Statement 2019 and how April 2019 changes to vehicle-related taxes will hit fleets and drivers

Chancellor of the Exchequer Philip Hammond’s second Spring Statement today (Wednesday, March 13) was an update on the health of the UK economy and the state of the Government’s finances, rather than laying out any major new tax or spending announcements.

The fleet industry had hoped that the Chancellor in his 35-minute speech would indicate the “direction of travel” on any changes to the existing company car benefit-in-kind tax and Vehicle Excise Duty regimes from April 2020 in the wake of last year’s introduction of the Worldwide harmonised Light vehicles Test Procedure (WLTP).

However, the fleet industry was left disappointed as the Chancellor merely stated that “in the coming months” the Government would publish its response to its recent call for evidence in relation to its review into the impact of WLTP on company car tax benefit-in-kind tax and Vehicle Excise Duty.

Autumn Budget 2018 - What it means for your fleet

Chancellor of the Exchequer Philip Hammond delivered his third Budget speech this week (Monday, October 29, 2018).

It was the final Budget prior to the UK leaving the European Union on March 29 next year. However, the Chancellor said that in the event of the UK being unable to secure a Brexit agreement with the European Union, and therefore there being a ‘no-deal’ Brexit, he would hold an emergency Budget.

Below we highlight the Chancellor’s key autumn 2018 Budget measures that will impact on the company car and van sector and the wider motor industry.

World Harmonised Light Vehicle Test Procure

As the furore of the VW emissions scandal begins to die down, the fleet industry is now faced with WLTP (World harmonised Light vehicle Test Procedure) which has been developed to provide ‘real-world’ emissions and fuel economy data.

The new WLTP figures provided by manufacturers in mid 2018 are only the beginning. From September 2019, all new vehicles must pass RDE (Real Driving Emissions) tests. RDE tests require a vehicle to be driven on the open road, with equipment strapped to the rear of the vehicle to measure everything that comes out of the exhaust. Critics may argue that RDE tests aren’t perfect but one can hope that they are closer to real world driving conditions.

The change in testing doesn’t stop with RDE (often called RDE1) because January 2020 sees the introduction of RDE2 testing for all newly designed vehicles. The same RDE2 test will also be applied to all vehicles sold from January 2021.

Diesel is particularly vulnerable with the 4% company car tax surcharge and with new tests as manufacturers aim to reduce pollutants such as Nitrogen Oxides (NOx). At the time of writing, April 2018, there are no RDE2 compliant diesel vehicles but interest for these vehicles is growing – the HMRC has confirmed that when they are available, they will not attract the current diesel supplement for company car drivers.

For more details on company car taxation visit our Tax Guide pages.

Autumn Budget 2017 - What it means for your fleet

Chancellor of the Exchequer Philip Hammond delivered his second Budget speech today (Wednesday, November 22, 2017).

Below we highlight the Chancellor’s key Budget measures that will impact on the company car and van sector and wider motor industry.