GOVERNMENT plans for new ULEV BIK tax rates for ultra-low emission vehicles, suddenly dropped from the Finance Bill following the General Election announcement, are just on hold – up in the dirty air – and not axed.
The ULEV BIK plans for 15 new bandings, of which 11 were for plug-in cars (sub-75g/km), were confirmed in the spring budget and due to take effect from 2020/21.
But suddenly they were up in the air when the election was called and the Finance Bill to confirm the Spring Budget details was severely edited down. And the problem was that there was no public explanation as MPs rushed to clear their desks and prepare hopefully low emission election battle buses.
Alphabet’s David Bushell urged caution to fleet managers on the sudden void in government policy guidance.
The Government will legislate for the remaining provisions at the earliest opportunity, at the start of the new Parliament. – Financial Secretary to the Treasury Jane Ellison
And so I asked the Treasury press office: “Please can you assist me in clarifying the consequences of the Finance Bill outcome on business car users and of course those leasing companies providing the vehicles.
“There is also the issue of workplace charging for electric vehicles, affecting both users and those providing the infrastructure.
“Have these proposals merely been suspended for their formal application to be revived at a future date after the General Election? If so, is there any timeline?”
The reply was: “I’m afraid, due to this being a pre-election period, we cannot go beyond what the Financial Secretary to the Treasury Jane Ellison said in the house:
“The Bill is progressing on the basis of consensus and therefore, at the request of the Opposition, we are not proceeding with a number of clauses. However, there has been no policy change.
“These provisions will make a significant contribution to the public finances, and the Government will legislate for the remaining provisions at the earliest opportunity, at the start of the new Parliament.”
So zero confirmation or clarification on ULEV BIK plans.
But they haven’t been dropped – and note that any “significant contribution to the public finances” will of course be from the pocket of the sector affected.
There has been more explanation on the publication of clean air proposals last week – but then that had to be made to meet a court directive. And again that consultation is short on concrete proposals.
