BVRLA calls on government to clarify road user charging
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THE BRITISH VEHICLE Rental and Leasing Association (BVRLA) is pressing the government for details of how a new grant, set to replace the Reduced Pollution Certificate (RPC) as part of the proposed lorry road user charge (LRUC), will affect operators of larger fleets.
In its response to the government’s LRUC consultation, the BVRLA raises concerns that operators of fleets of more than 50 vehicles, which receive a discount of up to £500 on their Vehicle Excise Duty through an RPC, may be out of pocket when this benefit is superseded by a new grant.
This is because the BVRLA believes EU State Aid regulations could prevent larger operators from claiming the reduction. It calculates that its members could lose out on £3.7m in benefits from the loss of the RPC.
However, transport minister Mike Penning tells CM that the government is working closely with UK hauliers to ensure the scheme works for them. “I am determined to level the playing field with foreign hauliers and end their competitive advantage. Suggestions that fleets currently benefitting from RPCs could end up paying £4m more due to the proposed LRUC are not correct. We are confident we can supply fleets with a grant that will mean they will continue to receive the same value benefit provided by RPCs.” BVRLA chief executive John Lewis says: “We looked at the information we were given in the consultation and interpreted it in the best way we could. We are grateful for this clarification and would prefer to be proved wrong.
“It would be good to hear more details of how the proposed grant will work. We hope that it will be available to all those affected by higher road tax bills and that it will not involve a mountain of paperwork.” A full response to the LRUC consultation is expected later this year.