The next statement will arrive at a transitional phase for the UK’s fleets, and road users in general. While previously it seemed as though the country was charging all-out into a largely electric future, with 2030 the last year in which one could buy an internal combustion engine (ICE) vehicle, the picture today is more muted, and net-zero has slipped down the agenda at the Prime Minister’s last address in September. Even if the government has momentarily stalled in its drive towards an electric future, fleets themselves and road users in general have powerful incentives to switch away from fossil fuels, which is why we’re still seeing an increase in electric vehicle (EV) usage even after the grants for EVs have ceased.
There are three factors driving the use of EVs, even when the government is moving away from incentivising them: price, sustainability and flexibility. These three factors drive what we would want to see from the Treasury in the next budget:
- Fuel prices need to go down: whether fleets use petrol, diesel, electricity or, as is increasingly likely, a combination of all of the above, they are all reporting that the prices they pay at the plug or pump are eating away at their profits. While the government doesn’t control fuel prices, it could be doing more to bring them down.
- Infrastructure still needs support: Despite the huge rise in the number of EV charging points in the UK, there is less support for alternative fuels, which can significantly improve the sustainability of the UK’s fleets, especially those that use HGVs that cannot use electric charging.
- Help for small fleets: Although a significant number of larger fleets are already using EVs, smaller companies often lack the ready cash to buy EVs. These smaller fleets make up a significant number of the vehicles on the road, so giving them incentives to be more flexible with the kinds of vehicles they use would make them more competitive and drive growth.
While we await further details and the true impact of the Prime Minister’s delay to 2035 and net zero strategies, as well as what will be included in the Autumn statement, we know truly that it will not impact the progress made by all stakeholders as we all work towards sustainable mobility.
Author: Paul Holland, Managing Director for UK/ANZ Fleet, FLEETCOR
