Spring Budget Statement 2024

Caroline Sandall-Mansergh, Consultancy and Channel Development Manager, Alphabet GB:

"We are supportive of the 12-month extension to the historic freeze on fuel duty, providing a degree of assurance for drivers across the UK for the next year. However, at a time when so many are faced with uncertainty around costs rising beyond their control, we expect that drivers will be looking for transparency not only for the future strategy for fuel duty, but more widely on the broader taxation landscape for vehicles and fuel. This is particularly true for individuals who are reliant on vehicles and want to make the necessary plans for the long-term.

“The Spring Budget statement has also hinted at a much-needed review of the full expensing policy, by potentially expanding this to leased assets. Alongside many others in the industry, we recognise this change as crucial to ensure the new scope for full expensing is fit-for-purpose for the fleet of today. Many companies are turning to leasing vs. outright ownership of vehicles as a more cost-effective route for investment, and as a result, these businesses will see significant benefit in tax exemption through full expensing. We hope the government will provide further clarity on timelines, and that it will continue to work with leaders within the leasing sector to ensure the reformed full expensing policy meets the investment needs of the modern business. 

“Though we look forward to seeing more details around the further investment into zero-emission vehicles, we were hopeful that the government would take further action on supporting a low-emission future as we near net-zero deadlines. For instance, the 15% VAT disparity between home and public charging remains unaddressed, making EVs a more considerable investment for those without at-home charging as an option. We are also yet to see the BIK tables for 2028/29, and eagerly await an update from the government to ensure we can factor these into our planning as early as possible."