A year of rapid progress

In looking back over the last year, our industry can be immensely proud of the progress it has made. 2021 was always set to be a turbulent year as the UK economy and global supply chains came to terms with the impact of the Covid-19 lockdowns and ensuing recovery.

The only thing we have been able to predict with any certainty has been change.

Change often presents opportunities, and as usual, the sector has seized these and bounced back. This is particularly true in the legislative and regulatory arena, where we have seen a monumental uplift in consultations and policy engagement over the last 12 months, on issues ranging from decarbonisation and air quality to motor finance and future mobility. This has presented us with an avalanche of opportunities to engage with decision-makers and, in doing so, help to shape the business and transport landscape of tomorrow.

With the constant support of our members, we have had a highly successful year in generating tangible benefits for the sector, based on having a solid foundation of priorities and strong relationships to develop our influence. This was evidenced in part by the physical return of the BVRLA’s Parliamentary Reception in September. There, we launched our updated Road to Zero report card that outlined the work that still needs to be done to support road transport decarbonisation.

This year, the report card compared the progress being made for cars, vans and trucks separately, assessing the respective progress towards zero-emission fleets in terms of EV supply, EV demand and charging infrastructure. The results were stark and informed a series of recommendations we have taken to the Government to accelerate this progress.

Beyond this, and on the back of the UK hosting the COP26 summit, the Government’s activity around road transport decarbonisation and encouraging businesses to make ‘greener’ decisions is expected to gather momentum. This will immediately be evidenced by more Clean Air Zones being rolled out at key urban hubs nationwide, alongside current Zones introducing tighter restrictions. Many operators are already in a strong position to suit these regulations, as it is the fleet sector that is driving the move towards zero-emission vehicles.

2021 has seen an unprecedented amount of policy activity and the leasing sector needs to stay alert and engaged. Today’s consultations and calls for evidence create tomorrow’s legislation and operating environments. Staying ahead of this regulatory curve can give a business a competitive advantage and falling behind it can result in high financial penalties. There is a responsibility on the Government to give clear direction on such changes too, which the BVRLA will continue to push for at every opportunity.

Taxation is one area where we are urgently seeking more clarity, particularly on future Benefit-in-Kind tax rates and any road pricing strategy. Both are important tools in accelerating the uptake of electric vehicles.

For Benefit-in-Kind rates, transparency is essential in allowing operators to plan their fleets effectively and allows accurate financial planning. Elsewhere, action is required to establish a new road pricing system to help the Government plug the £34bn gap that will be left as the current emissions-based approach becomes obsolete. We recently engaged with the Transport Select Committee on this topic, urging immediate action to enable a smooth transition.