The Budget took place this week, with the focus on EVs and fuel duty among key policies to keep an eye on for fleets.
A new tax on electric vehicles was officially announced, which will see drivers and fleets paying 3p per mile for EVs and 1.5p per mile for plug-in hybrid vehicles.
On top of that, the scrapping of the employee car ownership schemes has been delayed while fuel duty is frozen until September 2026.
The government has been under pressure to ensure that businesses are incentivised to invest and boost the economy, something which has prompted significant debate around the Budget.
With mileage set on EVs and hybrids set to be checked annually in line with MOTs, it presents a new challenge for fleets as they undergo the process of going electric in the coming years.
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It’s important to note that the EV and plug-in hybrid per mile charge is in addition to the existing road tax obligations, which has prompted questions from some experts as to its wisdom given that we’re still in a phase of making the switch to electric.
With costs rising and many fleets postponing or delaying replacement cycles, adding additional costs into the mix could be counterintuitive to the electrification of fleets.
On the flip side, more funding for charging points was announced, something which should help boost infrastructure around the EV network, which still requires significant work in the coming years.
