Budget 2014: Greener Journeys calls for 'Bus Bonus'; BVRLA urges support for ULEVs
Thu 20 February 2014
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In response to the Chancellor's call for policy ideas for the Budget on 19 March, LowCVP member BVRLA is urging the Government to introduce incentives to encourage business take-up of ultra-low emission vehicles (ULEVs). Greener Journeys, a bus industry collaboration, is calling for a 'Bus Bonus'; a tax incentive to encourage people to commute by bus.
Greener Journeys recent report outlines how the ‘Bus Bonus’ – a proposed tax incentive to encourage people to commute by bus – would benefit commuters, businesses as well as the economy more widely. Working with KPMG LLP, Greener Journeys estimate that the scheme will generate a net benefit of £93.4 million per year to the UK economy. It would help to cut carbon emissions by promoting modal shift to less carbon-intensive transport.
The ‘Bus Bonus’ allows employers to provide their employees with ‘e-vouchers’ to help pay for the cost of commuting to work by bus. The e-vouchers will be issued via smartcard, they will have a fixed value and will be exempt from income tax and national insurance.
Meanwhile, according to the British Vehicle Rental and Leasing Association (BVRLA), the Government should use the Budget to encourage business take-up of ultra-low emission vehicles (ULEVs).
The BVRLA has urged the Government to extend the nil rate tax band for zero emitting cars until 2016/17. The Government currently plans to increase company car benefit-in-kind tax on electric vehicles to 5% in 2015/16, and the association believes that reversing the decision would give a huge incentive to businesses when choosing which vehicles to run.
The BVRLA’s letter to the Chancellor also called for a vehicle's list price (P11D value) to be inclusive of the Plug-in Grant, and noted that the first year allowance for ultra-low emission leased vehicles should be reinstated.
Other measures to encourage sustainable business transport include supporting businesses to install charging points at workplaces, and capping Approved Mileage Allowance Payments at 3,000 miles.
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