The industry is calling for tax and regulatory changes ahead of the general election

The fleet industry is calling on the next government to introduce a range of tax and regulatory changes, including vehicle recall plans to introduce excise duty (VED) on electric delivery vehicles.

In connection with the ongoing campaign for the general elections scheduled for July 4, industry organizations have published a list of priorities, with particular emphasis on decarbonization.

The Association of Fleet Professionals (AFP) has published its report Tax and Regulatory Manifesto last week.

In addition to withdrawing plans to introduce VED in electric vans from April 2025, it calls for fiscal support to make electric cars and vans more attractive on the used market, a better labeling system to explain the range of electric vans in different weather conditions and loads, and infrastructure improvements charging.

The AFP also wants the next government to finally resolve the ongoing confusion over the 4.25-tonne electric delivery van rules and the new benefits in kind (BIK) tax tables by 2030.

The manifesto, says AFP, focuses on practical ideas, ranging from small changes in detail to major strategic changes, where it believes change or definition is required to enable companies to implement their fleet and mobility plans more quickly and effectively.

The first edition of the document was created three years ago, and the latest version has been expanded to 24 points from the original 13, reflecting the growing number of problems fleets are facing.

Dedicated Minister of Logistics and Supply Chain

Meanwhile, Logistics UK has called for the next UK government to appoint a Minister for Logistics and Supply Chain.

Chief executive David Wells stressed that a focus on investment and growth in the logistics industry would pay dividends across the UK economy.

“Whether it’s manufacturing, retail, healthcare or education, every part of our economy relies on logistics to deliver all the goods needed to generate business and growth,” Wells explained.

“Innovative, integrated infrastructure supported by a national logistics network will provide efficiencies and opportunities that will benefit us all.

“Giving logistics a voice at the heart of government would ensure that the needs of industry and business are heard and our sector can work with government to make the country more productive.”

Logistics UK launched its new manifesto earlier this year, endorsed by senior leaders from across the sector.

manifesto – Unlocking the power of logistics to drive growth across the economy – has already been sent to all political parties with a request to include their policy proposals in their own party manifestos when they launch their campaign.

In addition to appointing a new minister, the sector is pressing politicians to ensure a fair transition to a green economy, based on an agreed roadmap to achieving net zero emissions, depending on the availability of technology, infrastructure investment, regulatory reform and tax incentives.

It also calls for skills partnerships and reforms to funding models to ensure talent continues to be attracted to the sector, with further support from the successful Generation Logistics campaign, which focuses on raising awareness of the opportunities the sector offers.

“Logistics companies operate on particularly tight margins, and there are limited funds currently available to invest in new technologies,” Wells continued.

“We continue to urge the introduction of a dynamic fuel tax mechanism, with tax incentives for the use and production of alternative low-carbon fuels, to keep operating costs low and ensure the sector can invest effectively in a green future.”