EVERYBODY OR NOBODY’S DARLING?

Alistair’s impossible last Budget before Election dilemma, says Peter Tatlock, managing director, Masterlease
April 2009

The old adage that you can’t please all people all of the time is close to Alistair Darling’s heart as he approaches his last Budget before the General Election.

With unemployment forecast to top three million and a growing Budget deficit, he must instil confidence for people to spend, and for banks to lend, while appearing populist and popular, tough yet trustworthy with the nation’s ever-depleted funds.

So what can the fleet industry expect to see from Alistair’s red briefcase? Not much hopefully, with a number of measures previously announced – such as the fuel escalator, the new CO2 based capital allowance regime, VED changes, and next year’s showroom tax – all contributing to the ever-growing taxation burden on UK fleets.

Under the green ‘banner’ there is pressure for a UK version of the German ‘scrappage’ scheme to encourage movement in the new car market that last month saw a near one-third slump in sales year on year.  

Darling’s plans to increase VAT from January 1 may be bad news if he increases it beyond 17.5%. This would be a permanent cost to fleets because of the 50% disallowance on lease rentals.