The UK’s push towards zero-emission targets is a catalyst for businesses in Lancashire and across the country, redefining their vehicle fleets for a sustainable future.
July 2023 stormed the record books as UK businesses spurred a flurry of electric vehicle sales, with a new battery electric vehicle (BEV) registered every 60 seconds. Firmly in the driver’s seat of this industry milestone, fleet and business registrations constituted nearly 60% of all new car registrations. This surge paints a clear picture: businesses are leading the electric vehicle revolution, with their transition to electric fleets now taking centre stage in the race to meet the UK’s stringent zero-emission targets.
2024 will usher in a pivotal shift for UK businesses as the government’s zero-emission vehicle mandate stipulates that BEVs must account for 22% of all car sales. This drastic shift signals a turning tide for traditional petrol and diesel-powered fleets, now seen as not just financial burdens due to spiralling maintenance costs and unpredictable fuel prices but also sustainability laggards that clash with a company’s green ethos and social responsibility. The government’s groundbreaking initiative is the final bell for traditional fleets, making a clarion call to businesses for a sweeping reevaluation.
High maintenance, fluctuating fuel costs, and stringent emission regulations – once a norm for traditional fleets – now spell out a financial headache for businesses. But with the UK government’s bold zero-emission vehicle mandate looming, companies are seeing the writing on the wall. The switch to electric is no longer a ‘nice to have,’ but a ‘must-have.’
The financial appeal is undeniable. EV charging, significantly cheaper than fuelling up at the pump, coupled with enticing government incentives, puts companies on a cost-neutral ground, making switching to electric a financially savvy move. Beyond the balance sheet, there’s the brand. The growing preference for ‘green’ among customers and employees puts companies squarely in a corner. Go electric, or risk falling out of favour.
As the cost of living in the UK continues to rise, the government’s incentives provide a silver lining for these businesses’ employees. The secret weapon is the incredibly low Benefit in Kind (BiK) rate for EVs, made available through a salary sacrifice scheme. This savvy financial strategy translates to savings up to 60% on new electric cars, circumventing the initial sticker shock typically associated with EVs.
Amid the variety of electric vehicles available through EV salary sacrifice, Tesla has emerged as a favoured choice for many employees, with an increase in Tesla leasing. Alongside the low Benefit in Kind rate, employees also save on Income Tax and National Insurance contributions, meaning more people than ever before can afford such a safe and desirable new car.
As the zero-emission vehicle mandate looms, Lancashire businesses and the rest of the UK are driving towards an electric future. If the current momentum continues, the dominance of electric fleets on UK roads might be closer than we think, leading us to a cleaner, more sustainable future.
