Leasing Options applauds Chancellor's fuel duty freeze

MANCHESTER leasing broker Leasing Options says the Chancellor’s freeze on fuel duty will be a welcome relief for motorists against a background of ongoing economic challenges.

The broker said that by maintaining the current fuel duty rates, the Chancellor had effectively alleviated some of the financial burdens on households and businesses alike.

“For the motoring industry, particularly car leasing, this decision brings about a sense of reassurance. The freeze extension fosters a more conducive environment for consumer confidence and spending in the automotive sector. As uncertainty looms over various economic fronts, including inflation and supply chain disruptions, this stability in fuel duty rates offers a degree of predictability for both consumers and businesses alike.”

Mike Thompson, Chief Operating Officer at Leasing Options Tweet

Mike said that Leasing Options was committed to providing flexible and cost-effective leasing solutions to its customers and that the Chancellor’s decision aligned with the broker’s mission to support motorists and businesses in navigating the challenges of the current economic landscape.

He added: “The extension of the fuel duty freeze is a positive development for motorists, the motoring industry, and the broader economy. We welcome this decision and look forward to continuing to support our customers with flexible leasing options.”

No assistance for used EV market

Meanwhile the Vehicle Remarketing Association bemoaned the lack of action on the used EV market in what it was a politically oriented Budget.

Its Chair, Philip Nothard, said:

“This was a slightly disappointing but expected Budget for the automotive sector. There are some developments to welcome – such as the fuel duty freeze and 5p cut extension, £250m allocated to the R&D Net Zero fund for automotive and aerospace, continuation of full expensing for business assets and even the increase in the VAT qualification to £90,000. While not major moves, they are positives.

“What we really wanted to see from the government was help to underpin the proper functioning of the used car market as it moves to electrification.”

Philip Nothard, Chair, Vehicle Remarketing Association Tweet

Philip continued: “There are clearly issues with levels of demand and residual values that need to be resolved as supply of EVs into the sector continues to rise quite rapidly. There are a range of possible solutions that have proven successful in other countries – from zero interest loans to subsidies.

“Unfortunately, there was nothing forthcoming in this area and this was a Budget that was very much about the politics of the forthcoming general election.

“Polling for the government is consistently bad, so it’s perhaps understandable that they would want to try and turn the dial in terms of popularity, but it’s also disappointing for a remarketing sector that really does feel it needs some form of assistance in the short-medium term.”