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BROWN TURNS GREEN IN BUDGET TO PLEASE ALD AUTOMOTIVE Chancellor of the Exchequer Gordon Brown’s environmentally-friendly Budget steers fleets and company car drivers on a clear ‘green’ road if they want to reduce operating costs and cut company car tax bills. That’s the view of ALD Automotive managing director Keith Allen, who says the further ratcheting down of benefit-in-kind tax bills from 2008/09 coupled with radical changes to Vehicle Excise Duty highlights that businesses and drivers who choose low CO2-emission vehicles will save money. He said: ‘The Government has clear objectives to reduce pollution and help protect the environment through its motoring tax policy. ‘The Budget changes to company car tax from 2008/09 and the immediate reform of VED, which penalises so-called gas-guzzlers, clearly signposts to fleet operators and company car drivers that there are financial rewards for going ‘green’. The continuing policy of the Chancellor to ensure that company car tax rates are known three years in advance should be applauded as it enables long-term business planning. Mr Allen said: ‘Company car drivers can now choose their vehicles in the knowledge of benefit-in-kind stability right through to April 2009. That is both good news for recipients of company cars and the fleet industry at large. Long term planning and budgeting is essential for both businesses and employees.’ However, he warned that the introduction of a new top rate of VED (£210 for petrol cars and £215 for diesel cars emitting more than 225 g/km of CO2) on new cars registered after March 23, 2006 could hit residual values. ‘As the new top band only applies to newly registered vehicles I don’t believe cars that are currently on fleets will be hit. However, in the future used car buyers may think twice before buying a top band vehicle once it is defleeted,’ said Mr Allen. ‘In three or four years time the top rate is likely to have increased further and we may see used market demand for these vehicles shrink.’
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