Government launches consultation to end sale of new petrol, diesel and plug-in hybrid vehicle

Fleets will only be able to take delivery of new 100% electric or hydrogen-fuelled cars and vans from 2035 – and potentially earlier – if the Government has its way.

Last month, Prime Minister Boris Johnson announced that the Government would end the sale of new petrol and diesel cars and vans from 2035 at the latest – five years earlier than previously announced – to further crackdown on emissions and would include plug-in hybrid vehicles in the ban.

Now fleets are being asked by the Government for their views on the plan via a public consultation that asks five key questions:

  • The phase out date, which has been brought forward five years from 2040 and could be earlier if a faster transition appears feasible
  • The definition of what should be phased out
  • Barriers to achieving the above proposals
  • The impact of the ambitions on different sectors of industry and society
  • The measures required by Government and others to achieve an earlier phase out date.

The consultation document makes clear that owners of existing petrol, diesel, hybrid and plug-in hybrid cars and vans would still be able to drive them and buy and sell them on the used market.

In announcing the plan, Prime Minister Boris Johnson said that the measure “demonstrated the UK’s urgent action to reduce emissions” and added that the “Government will continue to work with all sectors of industry to accelerate the rollout of zero emission vehicles”.

The newly-elected Government’s first Budget on Wednesday, March 11 is expected to include a number of measures designed to accelerate the push towards an electric and hydrogen-powered fleet future.

Critical for the fleet industry is the continuation of the Plug-In Car and Van Grants, the former of which is due to be axed at the end of March.

The maximum Plug-In Car Grant is £3,500 – there is no definitive date on expiry of the £8,000 Plug-In Van Grant – and Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association, said: “Fleets will only be able to meet the Government’s ambitious new decarbonisation goals if they are given the right support with electric vehicle grants, tax incentives and infrastructure costs.”

With the Budget imminent, he continued: “Budget 2020 is an opportunity to set the tone for a new decade in which the transition to decarbonised road transport will be won or lost.

“Fleets are being asked to invest billions of pounds in new electric vehicle technology and infrastructure, which comes at a hefty price premium to its petrol and diesel alternatives.

“To achieve these goals the Government must provide a clear support package through to at least 2025. It must preserve the Plug-In Car and Van Grants, maintain a strong set of tax incentives and tackle the huge and often arbitrary costs associated with fleet charging infrastructure.”

Hopes are also high that the tax incentives will include retaining the reduced rates of company car benefit-in-kind tax due to take effect from April 6 for several years beyond 2022/23 for which they have been announced to date.

Meanwhile, as Britain gears up for an electric future in potentially just three vehicle replacement cycles time on average, concern has been expressed in the House of Lords at the potential hazard caused by electric vehicles breaking down.

Potentially taking longer to be removed that from roads than broken down internal combustion engine models, the Department for Transport is reported to be examining measures to ensure that electric vehicles can be removed from roads quickly.

During a debate in the House of Lords, Baroness Randerson, a Liberal Democrat transport spokeswoman, said: “[Electric] vehicles stop very suddenly. They also cannot be towed; they have to be put on a low-loader, which is a much more complex and longer process that will put rescue teams in greater danger.”

The debate came with the safety of so-called smart motorways, which use hard shoulders as live lanes, under microscope. The AA has previously said that the increased use of electric vehicles could be incompatible with smart motorways due to the lack of emergency refuge areas.

Meanwhile, the Vehicle Remarketing Association has highlighted a potential “charging crisis” for remarketing companies as electric vehicles start to make their way on to the used car market in larger numbers.

As vehicles are defleeted it is currently “just a question of ensuring that there is sufficient fuel in the tank of each”, according to the Association. However, in a new world of electric vehicles it will be vital to ensure they are charged to a “useable degree” to move them around.

Sam Watkins, chairman of the Association whose members handle more than 1.5 million used vehicles each year, said: “Once an electric vehicle has a flat battery, the movement of it becomes a challenge as they must be handled in line with correct safety protocols which differ from internal combustion engines.”

The Government consultation runs until May 29. The consultation document can be viewed at: https://www.gov.uk/government/consultations/consulting-on-ending-the-sale-of-new-petrol-diesel-and-hybrid-cars-and-vans/consulting-on-ending-the-sale-of-new-petrol-diesel-and-hybrid-cars-and-vans

Fatigued fleet drivers pose major road safety threat

Company car drivers are among those most at risk from a fatigue-related collision with a road safety organisation now calling for action to overcome tiredness.

The road safety sector has identified driver fatigue as one of the ‘five high-risk’ driver behaviour action areas to cut work-related road crashes. The others are: Speeding, time pressures, inside and outside vehicle distractions, and using mobile phone devices whilst driving, whether hand-held or hands-free.

Now road safety and breakdown organisation GEM Motoring Assist is urging drivers to be wise to the dangers of fatigue on journeys.

It says that the risks are ‘particularly high among those who drive for work’, and singles out company car drivers as they are likely to be at the wheel for long periods, or with tight deadlines to meet in the course of a day. GEM also identifies truck drivers, shift workers and young male drivers as those most at risk from a fatigue-related collision.

Around 85 per cent of drivers who cause fatigue-related crashes are male, and more than one third of these are aged under 30, according to research by road safety charity Brake.

GEM road safety officer Neil Worth said: “Exhausted drivers pose a significant safety threat, to themselves, to their passengers and to others who share the same road space. Fatigue is a major contributory factor in around 20% of road crashes, particularly in the early hours of the morning. However, on long, monotonous stretches of motorway it’s likely that a much greater proportion of collisions will be fatigue-related.

“Collisions occur when an exhausted driver fails to respond quickly and safely if a dangerous situation arises. These collisions are typically around 50% more likely to result in death or serious injury, as the driver is unable to take avoiding action to reduce severity of an impact.”

Driver safety and wellbeing is a priority at Fleet Service GB. As part of their range of services, their bespoke Driver Handbooks created for clients, cover in detail specific safety risks, such as fatigue and stress, and outline the best practice to avoid them. This gives the driver the tools to become better and safer drivers.

Top tips to help drivers’ reduce the risk of being in a fatigue-related collision

  • Preventing fatigue is more helpful than having to deal with it, so ensure you get a good night’s sleep before heading off on a long trip
  • Don’t drive for more than eight to 10 hours in a day. Aim to share the driving if possible
  • Take regular breaks – a break of at least 15 minutes after every two hours or every 100 miles is recommended
  • Don’t drink alcohol before a trip. Even a small amount can significantly contribute to driver fatigue
  • Avoid driving at times when you’d usually be sleeping
  • If you feel you’re becoming drowsy, consider pulling over somewhere safe (and legal) to take a 15 minute powernap.

GEM Motoring Assist’s video on the dangers of fatigue is available at: https://blog.motoringassist.com/road-safety/road-safety-general/dangers-fatigue/

Be prepared: Fleet managers’ action list for vehicle and drive ID and document changes over ‘no Brexit’ deal

The UK has exited the European Union, but until the end of the year there is a transition period during which rules and regulations remain unchanged.

However, there is much for fleet decision-makers to do by way of readiness for January 1, 2021 with industry experts advising “be prepared”.

Over the coming months, UK Government and European Union officials will be holding intense discussions to, the UK hopes, ensure that transition is as smooth as possible and the regulatory status quo remains in place as far as possible.

The UK Government has stated that it would not seek any extension to the transition period thereby putting pressure on officials to have agreements in place in just 11 months.

Documentation required by drivers travelling overseas and required vehicle identifiers could change in the event of the UK Government failing to forge agreements with the European Union. Highlighted below are the key issues.

International Driving Permits: Any requirement for a driver to hold one or more International Driving Permit (IDP) is dependent on the outcome of trade talks between the UK and the European Union.

Currently UK driving licence holders who live in the UK can drive in all European Union and European Economic Area countries using their UK driving licence. In addition to a UK driving licence, an IDP is only required to drive in some countries outside of the European Union and European Economic Area.

In the event that there is no European Union exit deal negotiated, the UK Government has previously said that it would seek to put in place new arrangements for European Union and European Economic Area countries to recognise UK driving licences when people were visiting, for example on holiday or business trips.

However, if no agreements are reached then there are three types of IDP, although in all likelihood either one governed by the 1949 Geneva Convention on Road Traffic or one governed by the 1968 Vienna Convention on Road Traffic will be required. Which one is required for a journey abroad depends on the country/countries being visited. An IDP is only available from a Post Office at a cost of £5.50.

As a result businesses and drivers should check if they require an IDP and which one. Further information is available at:

Insurance: The Association of British Insurers has urged drivers to contact their insurer for a Green Card – an international certificate of insurance – and take it with them if they wish to drive their vehicle in the European Union, the European Economic Area and some other countries (Andorra, Serbia and Switzerland) in the event of no agreement being in place following the transition period. In certain instances, such as fleet insurance, multiple Green Cards may be required.

Green Cards will be required under regulations as proof of insurance. Those who travel without one may be breaking the law, which applies to both businesses and individuals. The same requirements will apply to European Union motorists travelling to the UK.

Best practice advice for fleet operators is to contact the company’s vehicle insurance provider ASAP and at least one month before any date of travel overseas.

Non-UK driving licence holders: Companies have been urged to “thoroughly check” the validity of non-UK driving licence holders during the post-Brexit transition period.

The call has come from the Association for Driving Licence Verification (ADLV), which is urging companies to use the transition period to review the current actions they take in respect of non-British licence holders driving or employed in the UK, particularly in respect of convictions in the UK.

Although not shown on overseas licences, they are still recorded by the Driver and Vehicle Licensing Agency (DVLA). Consequently, the ADLV says that checking convictions enables the verification of all drivers against DVLA records as a minimum requirement for someone working and driving in the UK.

The organisation’s chairman Malcolm Maycock said: “Few companies seem to recognise the very real requirements for thoroughly checking non-UK licence holders entering the country.

“Whilst their physical licence identifies the country where they passed their test, an expiry date and the category of vehicle they can drive, it doesn’t provide convictions which may be held at the DVLA for motoring offences committed in the UK. By checking non-UK licences, companies maintain far greater control of risk and contribute greatly to road safety.”

Additionally, employers should review and document licence categories, expiry dates and locations where a driver passed their test – just because an employee has a European Union licence it may not mean they passed their test in a member country. When an employee with a non-UK driving licence started to drive in the UK should also be recorded.

Vehicle number plates and national identifiers: Under international conventions, GB is the distinguishing sign to display on UK-registered vehicles when driving outside of the UK, including in the European Union and European Economic Area.

The AA has advised that many UK drivers may have to purchase GB stickers as their Euro-style ‘GB’ vehicle number plates may not be recognised after the transition period.

However, drivers will not need a GB sticker to drive outside the UK if they replace a Euro-plate with a number plate that features the GB sign without the European Union flag.

Vehicle registration documents: Vehicle registration documents are required to be carried when driving abroad. That means either a vehicle’s log book (V5C) or drivers of leased and rented vehicles have an obligation to obtain a VE103 certificate from their hire or lease company before taking their vehicle overseas.

Both the V5C and the VE103 are essential documentation that prove drivers have permission to drive the vehicle. Without that documentation, drivers could be subject to delays at the border, or in the worst instance, have their vehicle impounded.

Road traffic crashes in the European Union involving UK residents and European Union drivers visiting or living in the UK: UK residents involved in a road traffic crash in a European Union or European Economic Area country should not expect to be able to make a claim in respect of that incident via a UK-based Claims Representative or the UK Motor Insurers’ Bureau (MIB).

Instead, UK residents involved in a road crash may need to bring a claim against either the driver or the insurer of the vehicle in the European Union or European Economic Area country where the incident happened. That may involve bringing the claim in the local language.

In the event of a crash in a European Union or European Economic Area country caused by an uninsured or an untraced driver, UK residents may not receive compensation if there is no agreement. That, said the Department for Transport, would vary from country to country.

Steam in to Minehead for a rock ‘n’ roll spectacular in aid of cancer charity

A 1960s rock ‘n’ roll spectacular is the focal point of a major fundraising event for west country-based cancer charity Hope for Tomorrow.

Taking place on Saturday, May 30 at the Regal Theatre, Minehead, the event is the first anniversary follow-up to last year’s hugely successful world premiere of the film ‘Chance Encounter’, which raised almost £27,000 for the charity.

Set in the late 1950s, the film is a gentle love story about a young couple who meet on a steam train one summer. That couple, Clive and Kathy, are now married and with a family and being rock ‘n’ roll fans they buy tickets to ‘attend’ a concert at the Theatre.

It is against that background that the ‘Chance Encounter Anniversary Project’ event takes place with four bands taking to the stage and among the stars will be Cliff Hall, best known as the keyboard player with The Shadows, the instrumental rock group and Cliff Richard’s backing group.

The ‘Chance Encounter Project’ is the result of an idea developed by Geoffrey Bray, executive chairman of Corsham-based fleet management company Fleet Service Great Britain (Fleet Service GB) and a patron of Tetbury-headquartered Hope for Tomorrow. Also hugely involved in this year’s event is Ian Housley, chairman of Fleet Service GB’s Achieve Advisory Group, which comprises a range of experts, including fleet decision-makers, to provide both the company and its customers with a wealth of knowledge and best practice advice.

Recreating the wonderful, nostalgic atmosphere of the great days of steam, last year almost 200 people travelled along the restored 22-mile West Somerset Railway line from Bishops Lydeard to Minehead to and from the film premiere, through the beautiful Quantock Hills. They did so on a 10-coach steam train including the historic Quantock Belle dining coaches and enjoyed lunch and tea. A further more than 100 people were at the Theatre after buying ‘film-only’ tickets.

This year that same journey and dining experience will be recreated with passengers able to enjoy lunch and tea prepared and cooked by chefs from Claire’s Kitchen, based in Wootton Courtenay, and Hywel Jones, the Michelin starred executive chef at Lucknam Park Hotel and Spa. Support is also being provided by supermarket giant Tesco.

Mr Bray, ‘Chance Encounter Project’ chairman and a steam railway enthusiast, said: “The film was fantastically well received and the almost £27,000 raised from the day was staggering.

“We hope this year’s ‘Chance Encounter Anniversary’ event will be equally, if not more successful, in raising funds for Hope for Tomorrow.”

The charity is dedicated to bringing cancer treatment closer to patients’ homes by providing a Mobile Cancer Care Unit (MCCU) – previously known as a Mobile Chemotherapy Unit – to every oncology centre within the UK. There are currently 12 Units operating across the UK.

Each bespoke MCCU costs £265,000 to build and maintain for the first four years of its life and continues to be owned and maintained by the charity. Hope for Tomorrow also provides each operating Trust with a nurses’ support car, which allows nurses to travel freely between the oncology centre and the daily treatment location of Hope for Tomorrow’s MCCU.

Since the launch of the first MCCU in 2007, the charity has saved patients a total of more than two million miles and more than 265,000 hours of travel and waiting time. Fundraising is crucial as it costs £40 per patient treatment with each unit treating up to 20 patients a day.

Mr Bray said: “Fundraising projects like ‘Chance Encounter’ are the lifeblood of the charity because it costs around £200 a day to operate one MCCU.”

  • Tickets to enjoy the train journey, lunch and tea and the rock ‘n’ roll spectacular and further information is available at: chanceencounterfilm.co.uk. Show-only tickets are available from the Regal Theatre box office in person, by phone (01643 706430) or online at www.regaltheatre.co.uk. The film, ‘Chance Encounter’, is also available as a DVD from the website. Further details on Hope for Tomorrow are available at www.hopefortommorrow.org.uk.

Unlocking connected vehicle data set to improve UK road safety, but challenges must be overcome

Connected vehicle data has the potential to end the scourge of potholes, improve driver behaviour and reduce the impact of incidents on UK roads.

However, major challenges need to be overcome to unlock the value of connected vehicle data including improving public and business trust in information sharing, lack of awareness of existing standards and technology maturity levels.

The key benefits of in-vehicle data are identified as:

  • Driver behaviour monitoring: Including the ability to analyse the way a vehicle is being driven, with the possibility for interventions to educate drivers on how to improve their behaviour on the road.
  • Road condition monitoring: Potential uses include identifying dangerous road conditions such as ice, which could be used to inform drivers using the same road; or collecting data on potholes and road infrastructure defects that local and national highways authorities can plan maintenance for.
  • Predictive maintenance: Collecting vehicle component performance data and alerting drives and fleet managers – and motor manufacturers – of potential failures and enabling maintenance to be planned in advance.
  • Supporting Mobility-as-a-Service (MaaS) journey platforms: Data such as vehicle location and speed of travel could be used to inform journey planning and booking car parking or tickets for onward travel via public transport.
  • Identifying ‘abnormal’ traffic behaviour: Changes in traffic patterns – such as slower speeds – could be used to identify incidents and road congestion, and inform drivers and authorities responsible for traffic management.

Fleet Service Great Britain (Fleet Service GB) is already pursuing the connected vehicle data pathway with its intelligent integrated online dashboards delivering real-time critical headline data on vehicles and drivers to the fingertips of fleet managers.

The technology used by Fleet Service GB to measure vehicle and driver data and performance in real-time – and flag up action areas – will continually be enhanced as vehicle connectivity intensifies and more data feeds can be obtained.

Last year, 71% of new vehicles registered in the UK were ‘connected’ to some degree and that figure is expected to reach 100% by 2026, according to the Society of Motor Manufacturers and Traders, thus creating ‘a rich data stream which will enable further innovation in the sector’.

As the UK transitions to a wholly autonomous vehicle future over the next 15 years – just three vehicle replacement cycles for many fleets – the automotive industry has defined six levels of connectivity, level 0 through to level 5.

Currently the vast majority of vehicles that are ‘connected’ are at level 1. That means they are equipped with ‘basic driver assistance’ features such as lane departure warning or adaptive cruise control and require an individual ‘to drive’.

By 2026 all vehicles will have a degree of connectivity with 16% at level 2, 14% at level 3 and 7% at level 4. Level 2 connected features are level 1 features but they operate in tandem with each other rather than separately; level 3 and level 4 features ‘can drive a vehicle under limited conditions’, while level 5 features can drive a vehicle ‘under all conditions’. It is unlikely that such vehicles will be available until 2035.

The Connected Places Catapult (CPC), which accelerates smarter living and travelling in and between the places of tomorrow and works with the Centre for Connected and Autonomous Vehicles (CCAV) across Government to support the market for connected and automated vehicles, has conducted a stakeholder workshop seeking to understand what challenges would need to be overcome to unlock the value of connected vehicle data in the UK.

Industry leaders who took part in the research called for a number of activities to be launched in the UK before 2025 to address the challenges identified. These included tasks around skill development, technology development, identification of business benefits and updating regulation.

Among the ‘key risks’ of in-vehicle data identified at the workshop were:

  • Gaps in the standards, requirements and validation of data quality that could impact on the delivery of services
  • A risk that data owners and service providers could lock customers into their data ecosystem and create a market monopoly
  • Predictive vehicle maintenance providers could force vehicle owners to use authorised service providers
  • A risk that the volume of data collected was too large for systems to process and manage efficiently and accurately
  • With growing connectivity there were risks that data access points could be used by hackers to gain control of a vehicle.

Henry Tse, CPC director of new mobility technologies, said: “There is a market need to pull data and insights together and increase knowledge-sharing across the connected vehicle sector, rather than it be stored in disparate locations. Doing this will unlock a host of benefits which could improve road safety for users, unlock economic benefits through a more efficient transport system and create innovative new businesses and services.

“We are now recommending the establishment of a consortium which can support and guide the activities and projects in this area, create a clear industry vision and accelerate the value the UK gets from this data in the new decade”

Iain Forbes, head of the CCAV, said: “In-vehicle data offers a host of potential benefits to UK consumers. This roadmap is a useful contribution to the essential work on how this data could be used to unlock exciting new services in a safe and sustainable way.”

Meet the team – Sarah Clifford

Name: Sarah Clifford.

Job Title: Head of service delivery.

Explain your role in 10 words: Managing company processes to ensure effective service delivery.

What’s the best aspect of your job? Using the company’s technology to scope and deliver new solutions to meet the needs of customers.

What’s the worst aspect of your job? Balancing priorities.

How long have you worked at Fleet Service GB? Since January 2015 when I helped to develop and then launch the business.

What was your first paid job? Waitress (with the worse uniform I have ever seen).

What’s your favourite car? Jaguar F Type.

What one thing would you like to achieve before you retire? Have the Fleet Service GB team recognised in the industry as the fleet management partner of choice.

Outside of Fleet Service GB, what would your dream job be? Difficult one, I like driving vans and wearing high-vis so maybe a delivery driver! Either that or I’ve always thought I would make a good police officer.

Who in the world would you most like to meet? Either of actors Tom Hardy or Andrew Lincoln (not fussed which).

What is your favourite way to spend a day outside of work? Some retail therapy with a long lazy lunch with friends.

If you won the lottery how would you spend the cash? The usual – cars, house, holiday home, trust funds for the kids.

Not a lot of people know that… I’m a great tap dancer.

Fleets face threat of rocketing vehicle and component price rises amid risk of no UK/EU regulatory alignment

Alarm bells are ringing across the motor industry that Chancellor of the Exchequer Sajid Javid’s decision that the UK will not “stay close to the European Union” after Brexit will trigger new vehicle and component price rises.

Furthermore, with the possibility of no regulatory alignment with the European Union in a future trading relationship, the motor industry’s well-established ‘just-in-time’ business model could be significantly impacted triggering longer vehicle lead times and component and spare part delivery delays resulting in increased fleet vehicle downtime due to administrative hold-ups at point of import.

In a headline-grabbing interview with the Financial Times (January 18, 2020), the Chancellor’s message to business following the UK’s January 31 departure from the European Union and the subsequent end of 2020 transition period was: “There will not be alignment, we will not be a rule-taker, we will not be in the single market and we will not be in the customs union.”

Saying that the required work would be “done by the end of the year”, Mr Javid told businesses to “adjust” to the new reality amid the possibility of there being no comprehensive free trade deal with the European Union with the result being some tariffs, quotes and border restrictions.

Late last year UK and European motor industry chiefs warned against diverging from European Union regulations highlighting concerns about the lack of frictionless trade and customs delays harming the industry’s ‘just-in-time’ operating model and the potential for World Trade Organisation tariffs impacting on the cost of vehicles and components.

The impact of tariffs – unless brands and their retail networks can absorb the additional costs which some have already warned they cannot – would see the list price of cars rising by 10%; commercial vehicle prices rising by up to 22% (an average 13.5% for light vans); and the cost of vehicle components by up to 4.5%.

What’s more, some motor manufacturers have already warned that the burden of price rises could mean that available model choice is reduced.

However, the Chancellor countered in the Financial Times interview: “Japan sells cars to the European Union but they don’t follow European Union rules.”

The Society of Motor Manufacturers and Traders said its priority was to avoid “expensive tariffs and other behind-the-border barriers”.

Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), said in response to Mr Javid’s interview: “UK fleets have enough uncertainty to cope with at the moment without having to worry about what kind of regulatory alignment the UK has with the European Union on vehicles and parts.

“Any sudden split from European Union rules could potentially create huge additional cost and administrative burdens. The sector is versatile and adaptable, but needs clear, specific and well-signposted details on future trading terms and conditions.”

What’s more, with the pressure on the UK and the European Union to agree a full trade deal by the end of 2020 – the Government’s self-imposed transition period – the BVRLA said: “This has increased the risk of a disruptive exit from the European Union at the end of 2020, and unless a sector-specific deal for the automotive sector is agreed in time raises the odds of negative consequences for businesses as they may not know how the future looks until late in the day.”

The European Union has confirmed that trade talks will not start before the end of February 2020. The BVRLA said in a briefing update: “One key date to look out for is July 1, 2020. This is when the UK and European Union would need to agree any transition extension past December 2020.”

The Association added: “But by July 1, we will know if there is even higher risk of a ‘hard’ Brexit and the possibility of tariffs or non-tariffs barriers in the automotive and other sectors. In the absence of a satisfactory automotive specific trade deal, the Government will still need to help our sector mitigate new tariffs/non-tariff barriers, possibly in a second Budget during 2020, or as part of a three-year Spending Review.”

What could be in Chancellor Sajid Javid’s Budget box for fleets?

Budget Day is Wednesday, March 11 and fleet chiefs are hoping for a raft of measures that will signpost the fiscal way forward and end the Brexit-inspired paralysis that has hampered Government decision-making in the past 12 months.

There has not been a Budget since October 2018 – there was a Spring Statement in March last year and company car benefit-in-kind tax rates for 2020/21 to 2022/23 inclusive were announced in July.

However, those rates have yet to be enshrined in law as neither an autumn 2019 Budget nor the resulting Finance Bill materialised due to the House of Commons being dominated by Brexit debate and then a general election being held prior to Christmas.

Now, with the Conservative Party enjoying a substantial majority in the House of Commons, a raft of measures could be announced in Chancellor of the Exchequer Sajid Javid’s forthcoming Budget to “get Britain moving” and that will impact on fleet operations.

First of all, fleet decision-makers will be hoping that the already announced company car benefit-in-kind tax rates for 2020/21 and the following two tax years will be confirmed and then be ratified in legislation. After all, as the Budget is less than a month before the start of the next fiscal year fleet chiefs and company car drivers will have made vehicle decisions based on an expectation that what was announced last July will not be changed.

As announced, for 2020/21 and 2021/22 separate company car benefit-in-kind tax rates will apply depending whether a vehicle was first registered before or after April 6, 2020 before realigning in 2022/23 – see http://www.fleetservicegb.co.uk/new-company-car-tax-regime/.

Furthermore, to enable fleet bosses and company car drivers to plan for the future, industry organisations have called on the Chancellor to announce benefit-in-kind tax rates for at least the following three tax years.

They point to the fact that many fleets and company car drivers now run vehicles for four years and into a fifth so it was only fair that they knew what the tax burden was for the whole fleet life of a vehicle.

Additionally, they want the Chancellor to confirm that the company car benefit-in-kind tax schedule for pure electric vehicles – 0% from 2020/21 – and plug-in models will be maintained at the levels already announced beyond 2022/23 for several more years to enable the embryonic sector to become established.

It is also hoped that the Chancellor will provide much greater clarity around the timescale for sales of new petrol and diesel cars and vans to be axed with 2030, 2035 and 2040 all dates that are possible.

As one industry expert said: “We know that the Government is driving fleets and consumers down the electric vehicle road, but to date there remains a vagueness about the details as to how the Government intends to improve air quality and its targets.”

Look out also for the Chancellor to announce a shake-up in Vehicle Excise Duty on light commercial vehicles. In 2018 the Government published a consultation on reform exploring the creation of a graduated first year rate for new vans, as is already in place for cars. It would replace the current flat rate regime.

In the 2018 autumn Budget, the Government announced that based on the consultation responses it was looking at:

  • Further developing its understanding of the impacts of Worldwide harmonised Light vehicles Test Procedure (WLTP) on carbon dioxide (CO2) emissions for vans, ahead of announcing the new rates and bands
  • Ensuring the new system took into account the weight of a van by introducing a two-category approach
  • Providing ongoing incentives, beyond the first-year, for new zero emission, ultra-low emission and other alternatively fuelled vans.

Since then there has been silence from HM Treasury. However, at the time the Government said it was aiming to introduce the new Vehicle Excise Duty system in April 2021.

Calls have also been made in the run-up to the Budget for the Chancellor to scrap VAT on the sale of electric cars.

The demand came from the AA, which also wants VAT to be scrapped on monthly lease rentals and the premium Vehicle Excise Duty (VED) rate, applied to vehicles with a list price in excess of £40,000, to be removed from electric vehicles to encourage uptake.

The motoring organisation says that as the £320 a year Vehicle Excise Duty supplement is only applied in years two to six of a vehicle’s life, the change would have a “positive impact” on the sale of used electric vehicles.

AA president Edmund King said: “The UK car parc needs a shock to the system. Eight out of 10 drivers say improving air quality is important to them, but they are confused by current policies and as such many have stuck with older, more polluting cars.

“With electric vehicles making up just 0.2% of the nation’s cars, there is a long way to go to meet the official target of at least half new car sales to be ultra-low emission by 2030. Our proposal would help to achieve that goal more quickly.”

He concluded: “Drivers want to amplify their wishes to go electric. We hope by plugging this idea the country will unite and deliver positive change.”

Additionally, the British Vehicle Rental and Leasing Association (BVRLA) and more than 20 other organisations have joined forces to call on the Government to pledge its continued support for the Plug-in Car and Van Grants.

Currently there is no commitment to continue the grants – £3,500 for a zero emission car and £8,000 for a plug-in van beyond 2020.

BVRLA chief executive Gerry Keaney said: “Fleets are in a unique position to accelerate the shift to more sustainable road transport, but we need the right incentives in place and the Plug-In Grants are crucial.”

The BVRLA also wants to see a re-introduction of the Plug-In Grant for hybrid electric cars at least as a short term measure, particularly with supply constraints on 100% electric vehicles extending, in some cases, to nine months and even longer.

There has also been a repeat of the annual pre-Budget calls for contract hire and leasing companies to benefit from 100% first year capital allowances on electric and ultra-low emission vehicles and the lease rental restriction on those models to be abolished, which would enable suppliers to cut monthly lease rates if the tax savings were passed on to customers.

Councils’ pollution crackdown seeks to drive cars and vans out of city centres

Driving into city centres could become as anti-social as smoking as towns and cities across the UK consider increasingly more radical solutions than simply a Clean Air Zone to reduce vehicle pollution.

Three of the UK’s best known cities have announced New Year moves to push forward with radical places to improve air quality that will see the nation’s first Zero Emission Zone launched in one location and a city centre car ban in two others.

Additionally, road user charging, Low Emission and Clean Air Zones and workplace parking levies are all on Cardiff City Council’s agenda as it seeks to tackle the climate emergency.

The measures underline the radical thinking of local councils and the extent to which they are prepared to go to improve air quality and compel fleets and consumers to transition to zero emission vehicles and alternative meets of travel.

However, amid the measures to crackdown on vehicle use in town and city centres, Newcastle City Council has toned down its Clean Air Zone plans by making private cars exempt from any charge.

The Council’s moves come with the British Heart Foundation launching a hard-hitting campaign, ‘You’re full of it’, to highlight that people are unwittingly inhaling dangerous levels of particulate matter air pollution in towns and cities across the UK every day.

It says that heart and circulatory disease deaths attributed to particulate matter air pollution could exceed 160,000 over the next decade – equivalent to more than 40 deaths each day – in the UK.

Calling for Government action and arguing that air pollution is a ‘major public health emergency’, the Foundation said: “We haven’t done enough to tackle this threat to our society.”

If the latest local authority announcements are given the green light:

  • Birmingham, the UK’s second city, would effectively ‘limit’ private car city centre access with a complete ban on through trips as the city strives to become carbon neutral by 2030. The measure take the council’s plan to introduce a Clean Air Zone in July covering all roads within the A4540 Middleway Ring Road (but not the Middleway itself) a major stage further.
  • York would become the first city in the UK to ban “all non-essential private car journeys” from its centre by 2023. However, it has said that it would work with businesses to make sure deliveries continued and companies were not negatively impacted by the changes. The authority is to spend the next 12 months developing the initiative.
  • Only electric and hydrogen vehicles would be allowed free-entry on to five Oxford city centre streets from December 2020 during the hours of 7am-7pm. Charge levels for non-compliant vehicles – cars, vans, HGVs and mopeds/motorcycles – of £10 per day is suggested rising to £20 per day in December 2024. It is planned that the Zone would be extended to cover the rest of the city centre in 2021/22.
  • A raft of measures could be introduced in Cardiff. The City Council’s ‘Transport Vision to 2030: Changing How We Move Around A Growing City’, sets out a £2 billion vision designed to transform Cardiff and South East Wales’ travel network and simultaneously reduce congestion and improve air quality in the Welsh capital. Referencing road user charging – a minimum £2 charge for vehicles entering the city – workplace parking levies and Low Emission/Clean Air Zones, the paper said all the proposals “will be tested” and that “no scheme will be taken forward unless we are satisfied that such a scheme will work for our residents and the city”.

Birmingham City Council’s plan is outlined in its newly published ‘Birmingham Transport Plan 2031’, which outlines a range of measures designed to: Prioritise people over cars, boost public transport, revitalise the city centre and local centres, reduce transport’s impact on the environment, and eliminate road danger particularly in residential areas by prioritising walking and cycling.

Councillor Waseem Zaffar, cabinet member for transport and environment, said: “As a city, we have been over-reliant on private cars for too long and with more people choosing to live and work in Birmingham, we need to find innovative new ways to keep the city moving in an efficient but sustainable way.

“The more journeys we take by walking and cycling, the more we will improve air quality and our health and the more we will reduce congestion. For longer journeys, buses, trams and trains will be the backbone of a new, go-anywhere transport system.”

He added: “The introduction of Birmingham’s Clean Air Zone will reinforce our commitment to establish a zero emissions city.”

The draft plan is now out to public consultation, before a final version is formally adopted by the Council.

Meanwhile, City of York Council says its moves to improve air quality go further than any city to date including Bristol, which, among other measures, plans to ban all privately owned diesel cars from a section of the city centre from March 2021 if the measure is given Government approval.

The measures are part of the Council’s plan to make the city carbon neutral by 2030. Councillors claim that by reducing and removing non-essential car journeys across York, whilst improving the attractiveness of other travel options – cycling and faster, more reliable public transport – will boost air quality.

Oxford City Council and Oxford County Council say they will introduce the Zero Emission Zone covering Oxford city centre later this year and expand it in 2021/22.

The far-reaching two-phase measure has been revealed in final draft proposals that have been open to public consultation. Both Oxford City Council and Oxfordshire County Council are now assessing feedback on:

  • Charge levels for non-compliant vehicles – cars, vans, HGVs and mopeds/motorcycles – of £10 per day charge is suggested rising to £20 per day in December 2024
  • The Zone’s hours of operation – 7am-7pm is recommended
  • Whether discounts should be available for all blue badge holders entering the Zone until December 2024 and a 90% discount for residents living in the Zone until December 2030
  • What future phases of the Zero Emission Zone should include, and when they should be implemented.

The draft document also proposes the creation of a Green Zone covering the rest of the city centre in 2021/22, which would be accessed free of charge by zero emission vehicles and with discounted charges for vehicles which comply with the London Ultra Low Emission Zone standards (Euro6/VI for diesel vehicles/Euro 4 for petrol vehicles).

The document also proposes exemptions for businesses registered in the Red Zone until December 2024, followed by a 50% discount until December 2030 when a £10 per day charge would be levied.

The Councils say that exempting vehicles registered to businesses within the Red Zone from any charge until December 2024, allows employers time to transition to zero emissions fleets. Deliveries in non-zero emission vehicles may be made free of charge outside of the operating hours of the Red Zone.

Under the proposals, a compliant vehicle is considered to be one that matches the Government’s Plug-In grant criteria – allowing some plug-in hybrids (cars with CO2 emissions of less than 50g/km and can travel at least 70 miles without any emissions at all and vans with CO2 emissions of less than 75g/km and can travel at least 10 miles without any emissions at all) and hydrogen vehicles, as well as 100% electric vehicles.

Following the feedback, the Red Zone will then go to formal consultation in March, and the draft charging order published, with both Councils making a formal decision on implementation in the spring, which could mean the scheme coming into effect in December 2020.

Under the proposals, zero emission vehicles would be able to drive in the Red Zone, which consists of Bonn Square, Queen Street, Cornmarket, Ship Street, St Michael’s Street, and New Inn Hall Street – free of charge.

The Green Zone due to cover the remainder of the city centre and slated for implementation in 2021/22, would operate alongside the Red Zone, with separate requirements.

That could involve a charging scheme with:

  • Daily charges for high emission vehicles – worse than Euro 6/VI diesel or Euro 4 petrol
  • A discounted daily charge for low emission vehicles – Euro 6/VI diesel, Euro 4 petrol or better, and/or for vehicles which comply with the London Ultra Low Emission Zone standards
  • No charge for zero emission vehicles
  • Discounts for residents’ cars, vans or motorcycles.

Greater detail around the implementation of the Green Zone and how it would work is subject to further technical work, and consultation in 2020.

Finally, in a rare item of ‘good news’ for car users in town and city centres, Newcastle City Council has decided to press ahead with introduction of a Clean Air Zone, but that cars will be exempt from any charge.

The Class C Clean Air Zone – rather than the previously announced Class D Clean Air Zone – will see non-compliant HGVs, buses and coaches charged entry of £50 per day and vans/light goods vehicles, taxies and private hire vehicles £12.50 per day. Minimum entry standards are Euro 4 for petrol vehicles and Euro 6/V1 for diesel vehicles.

However, the Council has also now decided to restrict traffic on the Tyne Bridge to one lane in either direction. That development has been criticised by the Freight Transport Association as “not delivering the desired improvements in air quality and simply increasing road congestion”.

Newcastle City Council’s plans, which are slated for introduction in 2021, must be approved by the Government.

Car manufacturers could axe model ranges to meet tough emission targets and avoid multi-billion pound fines

Motor manufacturers may have to radically and rapidly change vehicle line-ups, which could see some models axed, to avoid fines running into billions of pounds for failing to meet tough European emission rules.

New carbon dioxide (CO₂) emission rules demand that each manufacturers’ average emission across their new car ranges is an average of 95g/km. Carmakers breaching their individual CO₂ targets will pay fines of €95 (£81) for every gram over their limit, multiplied by the number of cars sold in both 2020 and 2021.

Now research by PA Consulting, the international management consultancy, suggests that Europe’s 13 leading vehicle manufacturers collectively face fines of €14.5 billion (£12.4 billion) unless low-emission vehicle sales are given top priority.

PA Consulting said: “This is the fifth year we’ve assessed progress towards the targets and, after positive results in recent years, many manufacturers have taken a step backwards and all now look likely to miss them.

“While a few top performers could turn the tide and avoid fines by prioritising low-emission vehicles, most must now take aggressive action to prepare for the 2025 and 2030 European Union CO₂ emissions targets.”

Those targets require by 2025 a cut of 15% on the 2020/21 95g/km emissions target and a 31% reduction from 2030.

In the UK new car fleet average CO₂ rose for a third successive year in 2019 by 2.7% to 127.9g/km, according to the Society of Motor Manufacturers and Traders (SMMT).

The motor manufacturers trade body said that massive investment by manufacturers into advanced powertrains, lightweight materials and aerodynamics meant new cars were ever more efficient, emitting, on average, some 9.3% less CO₂ than models produced in 2000.

However, that could not offset the overall CO₂ rise which, said the SMMT, was due primarily to the effect of the more stringent new model emissions testing under the recently introduced Worldwide harmonised Light vehicles Test Procedure (WLTP) protocol.

It generally ascribes a higher CO₂ value than the previous New European Driving Cycle test to the same model, but the SMMT also said that some segment shifts in sales and the decline in diesel in the wake of the 2015 emissions scandal that engulfed the Volkswagen Group and consumer confusion over Government policies towards the fuel were also to blame for the CO₂ increase.

One of those segment shifts has been a significant rise, in registrations of sports utility vehicles in the UK and across Europe. On average, such vehicles have CO₂ emissions 16g/km or 14% higher than an equivalent hatchback model.

PA Consulting said: “All the car makers that were previously on track to meet their targets – Toyota, Renault-Nissan-Mitsubishi, Volvo, Honda and Jaguar Land Rover – are now set to fall short according to our forecasts.”

Other major manufacturer likely to face fines for breaching emission targets include: Hyundai-Kia, Volkswagen Group, BMW, Ford, Daimler, Honda, Fiat Chrysler and Mazda.

As a result, PA Consulting calculates that Volkswagen could face a potential penalty of €4.5 billion (£3.8 billion) – 32% of its 2018 earnings – reflecting the high number of cars it sells in Europe, and Jaguar Land Rover could see a fine equivalent to 400% of its 2018 profit.

To combat the potential fines, PA Consulting said: “Manufacturers should look closely at how they can encourage sales of low-emission vehicles throughout 2020 as electric vehicles and plug-in hybrids qualify for super-credits that could significantly lower fines. That means reviewing pricing and promotions, and making low-emission vehicles more prominent in showrooms.

“Only by increasing sales of low-emission vehicles can car makers move towards their targets and reduce fines. That means understanding sales volumes by CO₂ emissions, heavily marketing hybrids and fully electrified vehicles, and thinking carefully about price. While the disruption and uncertainty caused by technological change have been difficult for the automotive industry, technology will be the long-term solution to reducing emissions and costs.”

SMMT chief executive Mike Hawes went further telling The Guardian newspaper: “Carmakers will have to look at their model mix to see whether that is economic. The fines are going to be severe, and all of them will do everything they can to avoid that.

“It could be that you see a reduction in consumer choice through the removal of higher-emitting vehicles from not just the top end, but particular segments.”

Even though the UK is exiting the European Union, it will still be impacted by the European Union’s emission targets as it adopts them as its own.

There is speculation that as motor manufacturers look to minimise the impact of fines that they will target sales of electric vehicles and smaller CO2-emitting models at European Union countries, rather than the UK. With a larger spread to average across, the 95g/km target would be easier to reach, especially with the CO2-heavy UK out of the equation.

The impact of that decision as model ranges transition would be to leave the UK potentially without some of its more popular vehicle options, and nothing to replace them and a fall in over total new car registrations.

PA Consulting added: “Our analysis shows it’s too late for changes in technology to make a difference to the 2021 targets, so manufacturers will have to take a different strategy to make an immediate impact. But the new low-emission technologies they are developing have real potential to reduce CO₂ emissions as focus shifts to 2025 and 2030 CO₂ emissions targets.

“Car makers should accelerate innovative technologies to market as a standard option, foregoing the long process of introducing premium technology that trickles down through the range.”

Tim Lawrence, an automotive expert at PA Consulting, was reported as saying: “There’s a big transition to go through from the existing combustion engines to the new technology. They [manufacturers] are very concerned about consumer adoption of electric vehicles.”