5:48 am, November 17, 2008
ALISTAIR Darling must use the pre-Budget report to boost business and consumer confidence.
That’s the call from the MD of Jaama, Jason Francis.
‘The pre Budget report on Monday 24th November is the ideal opportunity for the Government to raise confidence,’ said the boss of the fleet management software firm.
The car industry would benefit from the Chancellor doing a U-turn on the controversial road tax rises, due in April 2009.
‘A partial or complete abandonment of VED increases will not only give help to cash-strapped organisations and consumers, but could give a partial boost to the depressed residual values of higher emission defleeted company cars.’ Potential good news for dealers there, then.
But as Francis explained, there is also speculation that Darling will announce final details on changes to corporation tax rules on business cars, due to be introduced on the same date.
This is of particular significance to dealers selling to the fleet industry. ‘Cost-conscious fleets are now reviewing their company car choice lists, in the light of the new corporation tax rules, that mean there are cash savings for cars with emissions below 160 g/km.
‘However, there are a number of unknowns, not least the treatment of rental cars, that need clarification.’
It’s all up in the air at the moment. But the fact that fuel duty increases have, thus far, been held off, shows that the Government is willing to consider cases where such assistance would be useful.
Join Francis in lobbying for the above changes on 24th November, too, and who knows what the benefits could be…
