Finance Monthly - October 2021

49 Finance Monthly. Bus i ne s s & Economy driven down while we wait for research and development to innovate them and make them cheaper to manufacture and run. Transitioning an entire fleet to alternative fuel won’t be cheap. However, there is a huge need for the transport industry to be electrified – according to the UK Government, 79% of domestic freight was moved by road in 2019, and the transport was the largest sector for emitting domestic greenhouse gases. Greg Archer, UK Director of the European green transport campaign group Transport and Environment, argued for the ICE vehicle ban and the ever-growing need for this ambition. He said: “This plan is a milestone in the shift to a more sustainable UK transport system. The decision to only use zero-emission road vehicles – including trucks – by 2050 is world-leading and will significantly reduce Britain’s climate impact and improve the air we breathe.” In a bid to help businesses, seven major British companies have joined forces to accelerate the transition to hybrid and electric vehicles – some of which have some of the largest commercial fleets in the UK. Cost advantages for business Businesses can save money on fuel – a report by British Vehicle Rental and Leasing Association report found that electric vehicles cost between 2p and 4p a mile whereas the equivalent in diesel costs 12p per mile. Tax refunds are also available for the purchase of electric vehicles, meaning you can relieve some costs. The government is offering grants towards the cost of a new van of up to 20% and 75% towards the cost of installing a rapid charge point at your place of business. Congestion charges such as ultra- low emission vehicles (ULEVs) have been introduced in some cities to achieve cleaner air to breathe. While a great initiative for local ecosystems, it makes some cities impractical or expensive to drive through with ICE vehicles. All of these considerations make van leasing deals seem a more attractive prospect for businesses relying on fleets. What do you think about the plan to ban the sale of petrol and diesel vehicles? Is this giving you the push you need to adopt greener alternatives in your life? “In a bid to help businesses, seven major British companies have joined forces to accelerate the transition to hybrid and electric vehicles – some of which have some of the largest commercial fleets in the UK.” Sources https://www.autoexpress.co.uk/ news/108960/2030-petrol -and- diesel-ban-what-it-and-which-cars- are-affected ht tps: //www. theguardian.com/ environment/2020/nov/18/uk-ban- on-new-fossil-fuel-vehicles-by-2030- not-enough-to-hit-climate-targets https://www.autocar.co.uk/car- news/industry-news-environment/ analysis-uk%E2%80%99s-ice-ban- have-global-impact https://www.cnbc.com/2021/08/09/ ipcc- repor t -un-c l imate- repor t - delivers-starkest-warning-yet.html h t t p s : / / news . s k y . c om/ s t o r y / climate-change-sale-of-new-diesel- and-petrol -hgvs- to-be-banned- after-2040-12355349 https://assets.publishing.service. gov . uk / gove rnmen t / up l oads / system/uploads/attachment_data/ file/945829/tsgb-2020.pdf h t t ps : / /www. openr each . com/ news/major-bri t ish-companies- come-together-to-accelerate-the- electrification-of-transport-in-the- uk/ ht tps : / /www. cover sure . co . uk/ reddi tch/blog/couriers-t ime-to- ditch-the-diesel