Companies running fleets, and the managers who keep them moving, will feel the sharp edge of this Budget.
Demand for electric vehicles (EVs) is still fragile. Introducing a tax per mile for EVs is a serious mistake.
It cuts directly into the business case for adopting cleaner vehicles and will hit both employers and employees in the pocket.
For many fleets, this will slow or stop plans to move away from petrol and diesel vehicles. Early modelling by the Office for Budget Responsibility suggests the charge could wipe out around 440,000 electric car sales.
Even with other Government measures expected to recover roughly 130,000 of those, the shortfall is significant and entirely avoidable.
The Chancellor has increased the threshold for the Expensive Car VED Supplement to £50,000, which is at least a sensible correction.
The freezing of income tax bands, along with confirmation that salary sacrifice vehicles are not affected by the national insurance changes, means salary sacrifice remains a reliable route into cleaner vehicles.
The Government has chosen to protect the EV grant and invest further in charging infrastructure. These are welcome steps, but they do not repair the wider damage.
A grant cannot counter policies that make EVs more expensive to operate. More charge points offer little comfort if running costs keep rising.
Penalising early adopters sends the wrong message at the wrong time.
Fleets are already battling cost pressures, supply challenges and softening demand. This Budget risks turning uncertainty into retreat across the industry.
If the Government is serious about decarbonising transport and supporting British businesses, it should rethink this course.
Stability, consistency and long-term planning will do more to strengthen the market than short-term revenue grabs.
Chris Joyce is managing director at SOGO Mobility
