The Autumn 2024 Budget introduced key changes to energy and transport levies, designed to support businesses while promoting greener initiatives. These adjustments offer both immediate cost relief and long term incentives for sustainability to support your company vehicle fleets.
What’s Changing
- Fuel Duty Freeze
Fuel duty will remain frozen for another year, continuing to alleviate transportation costs for businesses which are reliant on fuel. - Vehicle Excise Duty (VED) Adjustments
New VED rates favour zero emission and hybrid vehicles while introducing higher costs for traditional combustion engines, encouraging businesses to transition to greener fleets.
What Does This Mean for Businesses with Vehicle Fleets?
- Fuel Cost Savings
The fuel duty freeze allows businesses to manage operational costs, particularly those in logistics and transportation heavy industries. - Incentives for Green Fleets
Businesses are incentivised to explore electric and hybrid vehicles, potentially saving on excise duties while aligning with sustainability goals.
Action Steps for Businesses
- Reassess Fleet Strategy
Evaluate the cost effectiveness of transitioning to electric or hybrid vehicles in light of the new VED rates. - Plan for Long Term Savings
Incorporate the potential benefits of reduced excise costs and fuel savings into financial forecasts. - Consult Fleet Specialists
Seek expert advice to optimise vehicle investments and identify funding or grants for green fleet adoption.
A Step Toward Sustainability
These measures reflect the government’s commitment to reducing carbon emissions while supporting businesses in maintaining cost efficiency.
How We Can Help
At Nuvo, we provide tailored advice to help businesses navigate transportation related tax changes and optimise their fleet strategies. Contact us today to learn more!
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