Chancellor Rachel Reeves has delivered her Spring Statement, and our pre-announcement concerns that there would be little in the way of meaningful relief have now come true. From navigating rising fuel prices, energy market volatility, and changes in international trade policies, businesses face increasing operational challenges. While we called for action in recognising these material pressures, our focus must now revert to imminent regulatory changes and the need for businesses to be prepared.
From April, zero-emission cars first registered on or after 1 April 2017 will be liable to pay the lowest first-year rate of Vehicle Excise Duty (VED). The Expensive Car Supplement exemption for EVs is also ending this year, meaning an additional VED charge on vehicles with a list price exceeding £40,000. On the face of it, this brings a sense of fairness to mobility taxation. However, it is also an example of how policy is sending the wrong message at a time when encouragement is critical—first, to get organisations to invest in the transition to greener mobility, and second, to support the long-term adoption and operation of these vehicles.
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We need clear direction and an update to the government’s sustainability strategy, particularly regarding Zero Emission Vehicles (ZEVs). The government remains committed to ending the sale of combustion engine cars by 2030 and ensuring all new cars and vans are 100% zero-emission by 2035. Yet, without clarity on how businesses will be supported through this transition, the uncertainty risks slowing adoption.
The industry must continue to provide solutions that drive cost and time savings for businesses navigating a shifting world. However, we cannot do this alone. The Spring Statement was an opportunity to provide certainty, incentivise sustainable investment, and ensure businesses and fleets have the confidence to make long-term decisions. Instead, it has left more questions than answers.
Paul Holland is the Managing Director for UK/ANZ Fleet at Corpay, including UK brands, Allstar and Keyfuels.
