Andrew Kirkley, co-director of OSV Ltd has responded to the government’s Autumn Statement. Full details are below:

The Motor Industry has always been an easy target for the Chancellor of any party. The continued freeze on fuel duty is good news but has also probably been implemented due to recent price increases at the pump due to Brexit and the value of the pound.

However every driver will be hit by an increase of approximately 2% on car insurance which has already increased significantly in many cases!

Some car manufacturers have already put in place unscheduled price increases due to the fall in GBP, and from April VED will increase for all drivers. For cars worth more than £40,000 we see an additional charge of £310 a year for the 1st 5 years of its life, These increases will result in companies and individuals seeing an increase of costs for running vehicles due to vehicle price increases, road tax and car insurance increases.

As far as the company car drivers are concerned, this budget will hit them with increased tax over the following years unless the car is less than 75CO2. We would expect more emphasis on vehicles with emissions less than 75Co2, of which there approximately 175 vehicles out of approximately 9000 vehicles available in the UK. All but 6 are plug in hybrids according to OSV`s website. They range from the Renault Twizy up to a Porsche and LWB Mercedes S class. Manufacturers will therefore work on changing this ratio, but as this is still relatively new technology these vehicles tend to be more expensive than traditional engines. Diesel cars continue to be hit by the 3% extra company car tax, so we would expect more people now to consider plug in hybrids far more seriously.

We would expect to see Private Contract Hire to grow as drivers benefit from lower monthly costs compared to traditional Dealership funding methods, therefore helping the actual cost of running a car down.

The budget ultimately has unfairly targeted the motor industry, driver and company car driver yet again.

You can read the British Vehicle Rental and Leasing Association’s response to the Autumn Statement here. 

The Motor Industry has always been an easy target for the Chancellor of any party. The continued freeze on fuel duty is good news but has also probably been implemented due to recent price increases at the pump due to Brexit and the value of the pound.

However every driver will be hit by an increase of approximately 2% on car insurance which has already increased significantly in many cases!

Some car manufacturers have already put in place unscheduled price increases due to the fall in GBP, and from April VED will increase for all drivers. For cars worth more than £40,000 we see an additional charge of £310 a year for the 1st 5 years of its life, These increases will result in companies and individuals seeing an increase of costs for running vehicles due to vehicle price increases, road tax and car insurance increases.

As far as the company car drivers are concerned, this budget will hit them with increased tax over the following years unless the car is less than 75CO2. We would expect more emphasis on vehicles with emissions less than 75Co2, of which there approximately 175 vehicles out of approximately 9000 vehicles available in the UK. All but 6 are plug in hybrids according to OSV`s website. They range from the Renault Twizy up to a Porsche and LWB Mercedes S class. Manufacturers will therefore work on changing this ratio, but as this is still relatively new technology these vehicles tend to be more expensive than traditional engines. Diesel cars continue to be hit by the 3% extra company car tax, so we would expect more people now to consider plug in hybrids far more seriously.

We would expect to see Private Contract Hire to grow as drivers benefit from lower monthly costs compared to traditional Dealership funding methods, therefore helping the actual cost of running a car down.

The budget ultimately has unfairly targeted the motor industry, driver and company car driver yet again.

You can read the British Vehicle Rental and Leasing Association’s response to the Autumn Statement here. 

The Autumn Statement and the Automotive Industry

Aylish Jarvie

PR at VoxPops PR
Having worked for years in PR helping grow a leading UK technology company, Aylish decided to branch out and help businesses access the exposure they need to reach new heights. With several years experience in managing and delivering PR strategies across sectors ranging from auto industry to food & drink to healthcare, Aylish loves to explore the different ways both traditional and online media can help startups gain traction as well their role in longer term brand building.
Aylish Jarvie
  • 28th November 2016

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