The 2020 BudgetOn By
The new budget for 2020 has been announced, with significant changes taking place in the vehicle industry. Overall, the Government's goal is to move towards decarbonisation by continuing to offer Plug-in Grants and tax benefits.
Some key points from the budget are:
A pot of £532 million will be available for Plug-In Car and Van Grants until March 2023.
Fuel tax has been frozen.
Between 2023 and 2025, company car tax rates will be frozen.
From March 12th 2020, the Plug in Car Grant has been reduced to £3,000 from £3,500, and will be unclaimable on cars costing over £50,000.
Until 2025, zero-emission vehicles will be exempt from the VED ‘expensive car supplement’.
Rapid charging infrastructure will receive a £500 million budget.
The Van Benefit Charge for zero-emission vans will cease from 2021.
Capital allowance bands have been tightened – only zero-emission cars will qualify for 100% of the first year allowance.
Threre will be fund of £2.5 billion to fix potholes over the next five years.
The British Vehicle Rental and Leasing Association (BVRLA) have published an in-depth guide to the 2020 budget and the way it will affect the vehicle industry. See it here.