Spread the love

The Chancellor’s Autumn Budget offered further clarity on the Governments plans to move consumers away from diesel cars and into petrol and AFV’s models.

The Budget signaled that in April 2018 VED rates for diesel cars not meeting the latest RWE standards will increase by one band. Further the diesel supplement for company car tax will increase by 1% to 4%, while fuel duty was frozen at 57.95p per litre for the seventh year running.

The Chancellor’s speech also confirmed £400m to support EV charging infrastructure, £100m for plug-in grants, and £40m for R&D on charging solutions.

Consultants ASE commented that the VED hike in April 2018 “could provide a boost to registrations for non-compliant vehicles for our key month of March, in a similar way that we saw earlier this year as customers seek to avoid the additional charge. “

However ASE suggest that this effect may be offset by “the decrease in productivity assumptions announced by the Chancellor and the slower than forecast recovery rate, will mean less money in consumer pockets, and this reduction in confidence will continue to provide a drag on sales.”

Philip Nothard, Head of External Relations at Cox Automotive, focused on the changes that will be felt at dealership level,”Dealers that are planning ahead and managing stock profiles correctly, including strengthening forecourts with an increase in electric and hybrid fuel vehicles, will be in a good place to ride through any announcements made in due course.”

For Rupert Pontin, Director of Valuations at Cazana.com, the budget brought some welcome clarity:“The fact that the Government has also clarified its position on diesel vehicle taxation should begin to provide stability for the new car market. Increasing VED by one band for older diesel vehicles that don’t meet current legislation should encourage consumers to opt for more modern, cleaner engines, although it is interesting to see that this does not apply to business van use.”

Steve Nash, CEO of IMI, however sought more clarity in the form of detail on whether the increase in funding for the EV sector will be allocated, in part, on those who will work on electric cars. He reiterated that currently just 1% of all technicians have been trained to work safely on the high-voltage technology: “The IMI welcomes today’s announcement, in the Autumn Budget, that £400m is being allocated to build the electric vehicle charging infrastructure.  This is great news and puts the UK on a strong path for the wider adoption of this motoring technology.  However, at the IMI, we hope that a proportion of this funding will be allocated to the training of the technicians who will work on these vehicles.”

Got a spare 30 seconds?

 Help us to provide you with better market insight by completing a very short survey. It is anonymous and only takes 30 seconds. You will get free access to the quarterly results.

Thinking of the switch to electric?

Need help in finding the right electric vehicle for you? Compare driving range, battery capacity, charging time, price, and features to find the perfect EV for you.