The Chancellor’s decision to raise fuel duty by 1.25ppl will add up £300 to the fuel bill of a 15-car small business fleet. And £40 per year to the fuel bill of a two-car micro business.
The change in duty announced in the Pre Budget Report was part of several measures designed to step up the focus on the environment.
“The increase in fuel duty may appear nominal, but the impact will be felt by small businesses,” commented Mike Waters, head of market analysis at fuel management experts Arval.
“Each penny per litre average increase potentially adds up to £300 per annum to a small business fuel bill and £40 to a micro business fuel bill running a mix of diesel and petrol cars.‚”
The importance of tackling fuel consumption and CO2 emissions was underlined by the confirmation of the 15% company car tax threshold for the 2008/09 tax year. It reduces from 140g/km to 135g/km.
Chancellor Gordon Brown said he would use the 2007 Budget to announce the tax thresholds for 2009/10 company car rates.
John Walker, national policy chairman, Federation of Small Businesses, commented: “We are very concerned that small businesses will be collateral damage in the drive for cleaner cars. Small businesses cannot change their journey times or ditch their current vehicle today and buy a new one tomorrow.”
For small businesses wishing to consider more economical vehicles, National Car Rental has produced a list of the most fuel efficient vehicles it operates.
National Car Rental’s top five fuel misers
- Toyota Prius 1.5 VVT-i T3 65.7mpg
- Renault Clio 1.5dCi 86 Dynamique 64.2mpg
- Ford Fiesta 1.4 TDCi Zetec 62.8mpg
- Renault Megane 1.5dCi 86 Dynamique 62.8mpg
- Citroen C4 VTR+ 1.6 HDi 110 58.8mpg
