Fleet stakeholders are demanding urgent policy clarity from the government, claiming the policy U-turns of new chancellor Jeremy Hunt are fueling uncertainty for company car drivers and fleet managers.
Monday’s announcement reversed most of the tax changes set out in the 'growth plan' of former chancellor Kwasi Kwarteng less than a month ago, hoping to stabilize markets ahead of the ‘medium-term fiscal plan’ on 31 October.
This includes “indefinitely” shelving plans to reduce the basic rate of income tax from 20% to 19%, originally announced in March 2022. Scheduled for April 2024 and brought forward a year, this had promised a 5% reduction in company car tax for around 300,000 drivers.
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