The 2009 Budget has been branded as ‘fleet inflationary’ by fleet software provider, Mycompanyfleet, with increases in BIK taxation, Vehicle Excise Duty and fuel excise duty all set to increase cost pressures on beleaguered fleet operators.
The increases, allied to the changes in the capital allowances system for company cars that were confirmed in the Budget Statement, will elevate the need for tighter fleet control by fleet managers and make the choice of vehicle for the next three years and beyond of even greater importance.
“There is little doubt that this Budget adds to the inflationary pressures that fleets are facing. And that tighter control of fleet costs and better vehicle acquisition and model planning are set to achieve even greater significance,” said Andrew Leech, business manager at Mycompanyfleet, the newly launched automotive and fleet division of HR solutions provider, NorthgateArinso.
“With the new ‘green accelerator’ reforms to the BIK company car tax system clearly signaling the way the Government wants fleet buyers to go – towards ever ‘greener’ and cleaner vehicles – selecting the right vehicles is going to be crucial,” he said.
“Fleet management solutions, like our own Fleet HR, which rate each model on the fleet policy list by its carbon emissions can provide powerful assistance to fleet operators, for whom the correct vehicle choices across the fleet will allow them to make substantial savings, but the wrong ones could cost their companies thousands in extra costs,” he added.
In the light of the new tax and duty increases, selecting as many vehicles as possible with emissions in the 120g/km 160g/km range will not only offer clear financial cost benefits, but also fuel consumption and NIC benefits, driver BIK benefits, and a reduction in a fleet’s carbon footprint, says Mycompanyfleet.
“Fleet managers need to act now to ensure they are not storing up an extra cost burden for their companies over the next three years,” said Andrew Leech.
“We have designed our Fleet HR system to allow fleet managers to select the most tax and cost efficient vehicles for their fleet policies and then to manage them as cost effectively and efficiently as possible,” he added.
