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Andrew Leech
I’ve been helping teams go green for over a decade! Ready to green your fleet?
Hot on the heels of a very mixed Autumn Budget, we’re taking a closer look at what it means for our customers. While it’s tempting to dive into the wider political points, we’re keeping our focus firmly on the practical impact for electric vehicle drivers and businesses alike. As the dust settles, we’ll highlight the key takeaways. I’ll try to keep it positive, as I sit here typing a blog at 7am, seeing my tax rise while others will earn increasingly more for sitting on their bums and never working (look how well I did!).
Breathing Room for Polluters, Not Progress
The winner of this budget was inhaler manufacturers!
After years of pro-EV policies, we’re now seeing a sharp shift. First came the return of congestion zone charges, and now a continued freeze on duty for polluting fuels, paired with a new 3p-per-mile EV road usage charge from 2028. We’re still waiting on the full details, but it looks likely this will be linked to some form of driver declaration.
Charging Access Still Ignored
There’s more funding to grow the UK’s charging network, which is welcome, but once again, there’s still no real focus on the 40% of drivers who can’t charge at home.
As I write this from a Starbucks in Newcastle with 12 chargepoints (only three in use), it’s clear the issue isn’t quantity everywhere, it’s accessibility where people actually need it.
We’re also seeing the ‘Luxury Car’ tax threshold raised to £50,000. It’s a positive step, though we’d much rather see support maintained for clean air zones. These don’t just cut emissions, they save lives, and they need consistent incentives, not more roadblocks.
Luxury Car Tax Tweaked, But Clean Air Missed
A potentially worrying signal for salary sacrifice came in the form of new pension restrictions: no National Insurance savings on contributions above £2,000 per year.
It feels short-sighted, especially with rising state pension costs, but there’s a four-year deferral before this change kicks in. That makes now the perfect time to consider other forms of salary sacrifice, which, as always, are protected for a period… as long as you’re already enrolled.
Employers Introducing the Scheme
Employees Going Green
Salary Sacrifice Pensions: Slashed
The minimum wage is going up, meaning less people will qualify for salary sacrifice schemes. That’s why we’re launching our Net Deduction Scheme in January, designed specifically to support these drivers and give them access to the benefits they’ve too often missed out on.
Where Does This Leave the EV Market?
Despite the upcoming per-mile charge in 2028, if you can charge at home for around 90% of your usage, you’ll still be spending under £600 a year to run your EV. That’s less than half the typical £1,500 annual cost of fuelling an ICE vehicle; that’s assuming fuel duty doesn’t increase, as threatened.
Let’s not forget the savings from salary sacrifice schemes, which significantly reduce hire and maintenance costs, especially now that there are more affordable EVs entering the market. Most cities continue to offer lower congestion charges and cheaper parking permits for electric vehicles too. Beyond cost, EVs remain more convenient, more capable (yes, they can wade through flood water!), and far more enjoyable to drive. Definitely more fun than the Budget.
The bottom line is, if this government keeps tinkering with EVs, we can guarantee the CO2 alone will be creating a lot more flood water in future…
EVs Still Win, Even With the Charge
Here’s hoping that next year’s announcements arrive with a bit more consistency. Good job Rachel isn’t in charge of Christmas… Still, even with a hint of the Grinch in this year’s budget, one New Year’s resolution should remain: make the switch to electric.
Salary sacrifice continues to be the smartest way to do it, especially through our scheme, which, unlike the budget (and many competitors), comes with no nasty surprises for employers.
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Fleet Evolution offers innovative salary sacrifice schemes, helping employers and employees save on costs while promoting eco-friendly electric cars. Enjoy easy setup, free maintenance, and swift activation for any company size.