The Association of Fleet Professionals (AFP) has launched its new Tax and Regulation Manifesto, setting out vital ways for the next government to support fleets and particularly focused on van electrification.
The first edition of the document was created in 2021, and the latest version – published ahead of the general election – now covers 24 points; up from the original 13 as fleets face a growing number of issues.
New additions include finally resolving ongoing confusion over regulations surrounding 4.25-tonne electric vans, Benefit-in-Kind taxation tables up to 2030 and the removal of plans to introduce Vehicle Excise Duty on electric vans from April 2025.
The fleet sector is also calling for fiscal support to make electric cars and vans more attractive in the used market, a better labelling scheme for electric van ranges that accounts for different weather conditions and loads, and improvements to the charging infrastructure with regulatory and fiscal support for accessible, affordable and fit-for-purpose charge points.
The majority of the points added to the new edition of the AFP’s manifesto are focused on current issues experienced around van electrification – which AFP chair Paul Hollick said was “proving much, much more difficult than for cars”.
“We are now in the situation where the majority of new cars being added to fleets are electric vehicles or plug-in hybrids, a percentage that we very much expect to climb over the next few years in a steady and predictable manner towards the 2035 production deadline.
“The same is just not happening for vans. There are issues over the capabilities of the vehicles themselves that make their operational viability for some fleets open to question, while availability of charging is also an ongoing issue for many. In the company car sector, adoption has been powered by preferential Benefit-in-Kind taxation, and some kind of government support is needed to really get the electric van market moving in the same manner.”
Hollick also stressed that interventions were needed in the used market – particularly as large numbers of ex-company cars are now starting to enter remarketing.
“A properly functioning used market is essential for the electrification of the UK car parc but there are indications that issues remain, largely around the appetite of buyers for these vehicles. In several countries, governments are offering support such as the interest-free loans being offered in Scotland, and we’d like to see more done here.
“The fact is that fleets need to be able to set realistic future residual values in order to viably operate electric cars and vans, and the used EV market needs to be quickly developed to a point of stability in order for this to be possible.”
He added that the AFP hoped the Tax and Regulation Manifesto would serve to prompt dialogue within the fleet industry and political circles, with the general election serving as a useful focal point for discussions.
“As an organisation, we would like to help enable those conversations to take place, and for whoever wins power to take a serious look at the resulting suggestions. Of the points we suggest, several could be implemented quite easily by any new government. Others, such as the need for discussions around a road tolling plan, are very much strategic and part of longer-term shifts in policy.”
The 24 points in the Tax and Regulation Manifesto are:
- More support for electric vans
- Tackle confusion over regulations surrounding 4.25-tonne electric vans
- Scrap plans to introduce Vehicle Excise Duty for electric vans
- Better labelling for electric vehicles
- Support for used EV Sales
- A national kerbside charging strategy
- Community charging projects
- Charge point regulation
- Move public charging VAT to 5%, in line with home charging.
- Easy access to get charge points fitted…
- … and VAT should be removed from home charger installation costs
- Review of the Advisory Electric Rate (AER)
- Actual cost definition for electric vehicle charging reimbursements
- Clear signposting of EV initiatives
- Benefit-in Kind tax tables to 2030
- Clean Air Zones should be co-ordinated nationally
- Tax breaks are needed for employees taking a mobility solution…
- … for shared and low carbon mobility…
- … and for hydrogen
- Parking costs should be linked to shared mobility and public transport solutions
- Inner city parking needs to be improved
- The “available to use” rule needs updating
- A clear definition of occasional private use is required for cars
- Road tolling strategy needs to be clearly signposted
The Tax and Regulation Manifesto 2024 can be downloaded here.
