Confidence will not return to the company car arena, as the changes were short term ‘tinkering’, rather than revisions that will make ‘a real difference’.
Geoffrey Bray, chairman of the Fleet Support Group, says that ‘the politicians and civil servants who come up with ideas have, in the main, never run a real business.
‘Business leaders need to take a long-term view, and putting in short-term fixes, such as the VAT cut, will make no real difference.’
This means fleet sales, which are beginning to suffer, are unlikely to be significantly stimulated following the pre-budget report.
‘Businesses want stability and long-term planning cycles. Following the Pre-Budget Report, the vast majority of companies and their employees continue to remain concerned about exactly the same issues as they were in the run-up to the Chancellor’s statement.
‘Confidence among businesses and consumers is low, and employees are wondering if they will have a job tomorrow or the day after.
‘As a result of the banking crisis, debt remains the enemy of businesses and consumers. A lack of confidence is deeply embedded in organisations and the public. The Chancellor’s measures will not alleviate that feeling.’
His advice to companies looking at future fleet car allowances is to focus ‘on cost reduction, with low emission, fuel-sipping vehicles to the fore.’