July/August 2016
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BVRLA News The bimonthly newsletter of the British Vehicle Rental and Leasing Association
Grey fleet cars costing business £5.5bn a year The BVRLA is calling on the government to tackle the challenges of the UK’s ‘grey fleet’, following the publication of a report showing the true cost of employees using their own cars for work purposes. According to its Getting to Grips with Grey Fleet report, produced by the BVRLA and the Energy Saving Trust (EST), some 12 billion business miles are driven each year on Britain’s roads by 14 million employee-owned cars. It says this costs organisations more than £5.5bn a year in mileage claims and car allowances.
than twice the annual emissions of London buses. BVRLA Chief Executive Gerry Keaney has called on the government to tackle these issues in its transport strategy. He said: “The Approved Mileage Allowance Payments (AMAP) system used for reimbursing grey fleet drivers is the only part of the motoring tax regime that provides no incentive to drive fewer business miles or use cleaner vehicles. This blind spot is wasting taxpayer money, costing businesses millions of pounds, damaging our environment and making our roads more dangerous.” The BVRLA is calling for a concerted effort from company bosses and policymakers to tackle these issues. The association wants to see a 50% reduction in grey fleet mileage and costs by 2020, and is urging government ministers to help by highlighting the alternatives to grey fleet use and offering best practice guidance, particularly for public sector organisations. Keaney added: “Cutting grey fleet mileage by just 15% would be the equivalent of taking 225,000 cars off the road in emissions terms.”
Using government figures and fleet data, EST researchers developed a profile of a typical grey fleet vehicle and compared it to alternatives, such as rental cars, car club vehicles and company cars. They found that the average grey fleet car was older, more polluting and potentially more dangerous than its counterparts. Grey fleet vehicles had an average age of 8.2 years, and emit 3.6 million tonnes of CO2 and 8,150 tonnes of NOx – more
As well as the over £5.5bn of potentially unmanaged costs from mileage claims and car allowances, the research indicated that grey fleet vehicles account for a significant portion of the £2.7bn costs associated with work-related road accidents. u Further information www.bvrla.co.uk/advice/guidance/grey-fleet How do rented and leased cars compare with the grey fleet? See page 9.
BVRLA reacts as UK votes to leave the EU The BVRLA is working on behalf of the fleet sector following the UK’s vote to exit the European Union. page 4 Roundtables address key policy concerns Work has begun on policy roundtables to inform the BVRLA’s position on major issues facing the sector. page 4 Data access doubts shape tech take-up Control of vehicle and driver data dominated the Fleet Technology Congress in July. page 6 Authorised for consumer credit… but what comes next? What should ‘authorised’ firms expect from the Financial Conduct Authority’s consumer credit regime? page 8 Grey fleet cars: costly and polluting Read more details from the BVRLA’s Getting to Grips with Grey Fleet report on the cost to businesses of allowing employees to use their own vehicles for work. page 9 LCV standards review Help the BVRLA revise its Fair Wear & Tear Standard for light commercial vehicles. page 10
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