A revised Tax and Regulation Manifesto is being launched today by the Association of Fleet Professionals (AFP) ahead of the Spring Budget on March 15.
The first edition of the document was created almost two years ago and the new version has been expanded from 13 to 21 points. Key items added include greater support for electric vans, the introduction of a chargepoint regulator, alignment of public charging VAT with home charging at 5%, tax breaks for hydrogen use and the support of community charging projects to encourage local charger installation.
Paul Hollick, AFP chair, said: “As a campaigning industry body, the Tax and Regulation Manifesto represents the AFP’s core thinking. It is designed to focus on practical ideas, ranging from quite small detail alterations to major strategic shifts, around which we believe that change or definition is required to enable businesses to move forward with their fleet and mobility plans faster and more effectively.
“Our 2021 Tax Manifesto was successful in that our number one request – to provide more information about future benefit-in-kind taxation – was achieved last year almost exactly in line with our thinking. We believe this very much shows that the government is listening to the fleet sector and we are hopeful that some of the ideas that we suggest here will ultimately be adopted.”
Paul said that the manifesto was the result of several months of work by the AFP’s Future Mobility Steering Committee.
“We’ve been having wide-ranging discussions with our members and other interested parties about developing our original ideas in areas where we believe that the taxation of fleets and mobility needs changing or developing in order to create effective incentives, greater certainty and more fairness.
“Of the 21 points we suggest, several could be implemented quite easily, almost at the stroke of a pen. Others, such as the need for discussions around a road tolling plan, are very much strategic and part of longer-term shifts in policy.
“The results, which we believe are constructive, realistic and thought-provoking, are contained in this document. We’re releasing the manifesto now, just ahead of the Spring Budget, because this is when discussion around policy and fiscal measures affecting fleets are at their peak. We want the document to spark as much discussion as possible.”
The manifesto can be downloaded at Tax Manifesto 2023 (theafp.co.uk) and its 21 points are:
Paul continued: “Most of these points are directly related to the changing shape of the fleet and mobility sectors, specifically the practical issues that we are encountering when it comes to car and van electrification. While we appreciate that the government has achieved much in this area, there remains a lot more to be done, especially when it comes to light commercial electric vehicles.
“What we hope to see now is that the manifesto will be considered by the fleet and mobility sectors and to hear the reaction from all parties who have an interest. It is by no means a fixed document and we are very much open to further ideas and refinements.”
View the manifesto here – Tax Manifesto 2023 (theafp.co.uk)
Practical advice for fleets facing a range of current issues is the focus of this year’s annual conference from the Association of Fleet Professionals (AFP).
Taking place at The British Motor Museum, Gaydon, on Wednesday 17th May, sessions will cover subjects including managing supply matters, dealing with the rising costs of leasing and rental, managing an aged fleet, reimbursing drivers of electric vehicles, and optimising van fleets while gearing up for electrification. There will also be a live training exercise involving everyone at the conference that will explore fleet policy for the future.
Paul Hollick, chair at the AFP, said: “In recent years, much attention has been given by the fleet sector to big, strategic subjects such as electrification. These are obviously very important but, on a day-to-day level, many AFP members in 2023 are looking for advice and assistance on how to deal with a whole series of everyday challenges.
“The ongoing impacts of everything from the pandemic to the current economic crisis means fleet managers are today facing a multitude of difficult issues for which there are often no easy answers such as rising costs across the board, ongoing supply difficulties, and the ageing of their existing cars and vans.
“The purpose of our annual conference is to tackle several of these subjects, with a focus on practical solutions that have been proven to work, explained by leading fleet managers and industry experts from across our sector. We want delegates to leave with ideas they can put straight into action.”
Paul said that last year’s AFP conference, the organisation’s first, had been a major success with more than 250 members attending.
“While this is just the second time we have held the conference, it feels to us as though it is already well-established on the fleet calendar, thanks to the enthusiastic response we received last year. We are delighted to announce that Mina are headline sponsor for the conference and we will finalise the agenda and announce our list of speakers shortly. We’re very much looking forward to the event.”
Ashley Tate, CEO at Mina said: “We are delighted to be AFP headline sponsors for the second year running. The sense of collaboration and desire for electrification was so strong at last year’s conference that there was no question that we wanted to be involved again this year.”
Registration for the conference, which is open to all AFP members, is now open and can be found at Conference 2023 – AFP (theafp.co.uk)/.
Telematics is proving “almost essential” to the adoption of electric vans and job-need electric cars, says the Association of Fleet Professionals.
Stewart Lightbody, vice chair at the industry body, explained the technology was important when it came to resolving two major points – when, where and for how long these cars and light commercial vehicles were charged, and calculating actual amounts where employers were reimbursing employees for charging costs incurred.
He said: “We now have a number of major fleets with more than a thousand electric vehicles (EVs), so there is quite a formidable bank of experience available within the AFP. A key message we are receiving from these members is that in the majority of job-need cases, telematics is proving almost essential to a smooth electrification process.
“It’s a key element in ensuring that the best option is employed at the best time in terms of convenience and range with the aim of minimising charging downtime. For example, many electric van operators are timing charging to coincide with driver’s breaks, using telematics to confirm that employees are rapid charging to 80% and not lingering to trickle charge to 100%. This is seen as the most productive balance of work availability against charging time.
“Others are trying to minimise use of rapid charging, especially on motorways, because low operating costs are an essential part of their electrification objectives. There is generally a wide gap between the cheapest available power – which is usually at home – and the most expensive – normally the fastest commercial charging on motorways.
“Additionally, in cases where there is limited charging provision – such as in remote areas – the technology means that work can be planned around the few facilities that are available, making EVs practicable in places where there might otherwise be difficulties.
“In all of these instances, the use of telematics makes planning and monitoring much easier, showing the location and type of chargers in relation to the vehicle route and allowing charging strategies to be implemented effectively.”
Stewart added that there was also an important role for telematics in tracking vehicle mileage for fleets that used an actual cost method for charging reimbursement.
“While the 8p AER rate introduced last year was much more acceptable for many employers, there remain a relatively large number who recognise that this is not going to meet the costs that some drivers are racking up driving an EV, especially in vans and larger cars. Telematics means that actual costs can be calculated with greater ease, making this kind of reimbursement a more practical proposition.”
AFP members were swapping ideas and observations on EV management on an almost daily basis, he said, sharing their experiences and solutions.
“Electrification is providing a whole series of new opportunities and challenges for fleets and this thinking around telematics is only one fragment of the overall picture. An important advantage of being part of the AFP is the ability to network and access best practice, and this is something that is proving especially important for EV operators at the moment.”
The introduction of an apprenticeship standard for fleet is being investigated by the Association of Fleet Professionals.
In response to demand from the members and the wider industry, the organisation has been looking into the process involved in the creation of an apprenticeship standard and is now inviting feedback from across the sector to gauge enthusiasm.
Paul Hollick, chair, said: “The creation of a vehicle fleet apprenticeship standard could potentially be a huge boost to the industry and help further with formally professionalising roles within our sector. It is an idea with significant appeal.
“However, the size of the task and degree of industry support required should not be underestimated. We at The AFP have the energy and commitment to support employers to drive this forward but the creation of a vehicle fleet apprenticeship programme would need widespread commitment to ensure its success.”
A key part in receiving approval for an official apprenticeship standard requires commitment from a number of companies that they would take on apprentices in order to prove the need and viability for its introduction.
Paul said: “There are many steps in the creation of the apprenticeship but the one crucial to its success is to prove there is a need. This requires what is referred to as a ‘trailblazing group’ of 10-20 experienced fleet employers who will be instrumental in helping to develop the apprenticeship standard and employ apprentices in the first year of the programme.
“This is very much a question of employers putting their money where their mouths are and there would need to be a cohort of businesses willing to both create jobs and put in place all of the support resources and mechanisms that apprentices need.”
However, Paul said, the advantages of an apprenticeship scheme for vehicle fleets were numerous and obvious.
“While there are many highly qualified and capable fleet managers in our sector, supported by training and qualifications available through the AFP Fleet Academy, this is not a profession with a recognised entry route. Having apprenticeships would change that and provide much more of a structured career path into the fleet sector.
“In the future, especially as fleet managers continue to evolve into mobility specialists, an apprenticeship could eventually sit alongside career choices in other corporate specialisms such as human resources and procurement, providing a steady stream of talented individuals.”
Businesses and industry professionals interested in becoming involved in the creation of a vehicle fleet apprentice standard should contact the AFP at [email protected].
New electric van availability could be exceeding diesel, providing an opportunity for light commercial vehicle fleets to seriously consider adopting the new technology, says the Association of Fleet Professionals.
Paul Hollick, chair at the industry body, explained some members were reporting that electric vans were currently available with significantly shorter lead times than diesel equivalents.
“Electric van production is beginning to ramp up quite quickly and while the numbers remain relatively small in overall industry terms, this appears to be creating what are – in current terms – relatively short lead times that can be measured in months.
“As with electric cars, there is a strong possibility that manufacturers are channelling greater resources into electric van production in order to meet corporate emissions targets and this could additionally lead to comparatively strong availability over the next few years.
“What this means overall, we believe, is that now is a good moment for fleets who need vans and who have been deliberating over electrification to think seriously about placing orders. While there are widespread reservations about some aspects of going electric for light commercial vehicles, in many cases it makes more sense to have an electric van and begin managing those issues sooner than to wait longer for a diesel model.”
Paul added that the general AFP view was that although serious consideration needed to be given to the potential drawbacks of electric vans, most fleets could begin to use them relatively easily in at least some applications.
“We worry that widely discussed operational and technical barriers – while they certainly need to be part of any buying decision – are serving to disproportionately hamper electric van adoption across our industry when there remain many operators for whom electrification is a real and viable solution.
“The fact is that in the absence of any other widely available zero emissions technology, electrification is the future for light commercial vehicles so, as a profession, we need to be working to resolve these problems and doing so operationally in the real world is probably the best way forward. Bearing in mind the current supply situation, now is a potentially a good moment for fleets to place orders.”
Paul added that much more government assistance was also needed to speed adoption and help to overcome objections.
“We’ve talked at length in recent months about the requirement for some kind of government support for fleets to acquire electric vans, acting as an equivalent to the way benefit-in-kind has been used to massively boost car electrification. It would really be a help to provide incentives that effectively outweigh any potential problems.”
Fleets should “look beyond” full autonomy at other possible uses of new assisted driver technology, says the Association of Fleet Professionals.
Paul Hollick, chair at the industry body, said that it was becoming clear that the promise of entirely self-driving cars was unlikely to materialise in the near future but that other potentially useful – and even transformational – ideas were coming to fruition.
“General agreement seems to be emerging across the autonomous tech field that the target of full ‘level five’ autonomous driving is still some years away, if indeed its inherent problems can ever be solved. This is perhaps disappointing given the hype but fleets potentially have a lot to gain by looking beyond that setback. There is much that can be done with the related technology that is readily available and fleets should be both looking at its possibilities and also thinking about infrastructure to ensure its safe use.
“Especially, the UK appears to be more liberal than some other countries in terms of allowing this technology to be used on public roads, so there is a chance that we may effectively be asked to become early adopters – with both the risks and rewards that brings.”
Paul said that some fleets already operated vehicles with level 2 autonomy such as lane changing and self-parking systems and level 3, that allowed fully automatic driving on some roads such as motorways as long as the driver was ready to take control if needed, was not far away from production models.
“Our view is very much that fleets need to be thinking about how they view these levels of assistance. Essentially, they rely on the driver intervening if the technology fails but it is all too easy to envisage situations where this handover does not happen. There needs to be serious examination of the risk management and Duty of Care implications.
“Especially, because these driving modes may be soon available on cars that are entering production, there is a chance they may arrive on your fleet almost by stealth. You need to know if vehicles with these levels of autonomy are being used on your fleet and ensure that drivers are familiar with the technology and how it works. There are very clear risks.
“However, this should not deter fleets from investigating and, where appropriate, accessing the potential advantages in terms of reducing driver stress and cutting accident rates. These assisted forms of driving could prove to be valuable in terms of the benefits they bring. They just need to be properly managed within a robust and sensible framework where drivers understand the limitations and their responsibilities as an employee and road user.”
Paul said that there were other intriguing possibilities that autonomous technology provided, such as the ability for fleets to access services that use remote driving.
“Our Future Mobility Committee recently saw a presentation from Fetch, which plans to use remote driving to deliver car club-style services, with trials underway in Milton Keynes. It’s early days for this kind of tech but the potential is considerable.
“Certainly, remote driving appears to solve many of the problems inherent in higher levels of autonomy while delivering some of the most important advantages. There are a very wide range of potential fleet applications. For example, if hire cars can be delivered to the point of need at short notice without the need for a delivery driver to be present, that would be a massive advantage and open up pay-on-use car services to a much wider audience.”
A “kickstart” is required from government to encourage faster electric van adoption by businesses, says the Association of Fleet Professionals.
Paul Hollick, chair at the industry body, said that its members were reporting a range of issues with the introduction of electric vans and some form of financial incentive was needed that would help to overcome these objections, playing a similar role to the boost provided by low benefit-in-kind taxation for electric cars.
“Our feeling is that there is an assumption at government level that electric vans will follow roughly the same pattern as electric cars in terms of speed of adoption but given feedback from across our membership, we are highly doubtful that will prove correct.
“We now have several major fleets running a relatively large number of electric vans and almost all are finding a range of problems that are not easily solved and which are proving to disincentivise both operators and drivers. Many of these early adopter organisations have a corporate commitment to net zero and will effectively choose electric vans whatever the operational compromises encountered. However, others are proving less likely to be quite so determined with some having suspended electric van acquisition. That is why some form of incentive needs to be introduced simply to make tackling these problems worthwhile.”
Paul said that the issues encountered could be divided into operator and driver problems.
“Operators are reporting that charging infrastructure is often unsuitable for vans, AER rates that do not provide suitable levels of reimbursement, ongoing poor supply of vehicles, limited choice of model types, rising lease and purchase prices and, of course, dramatically increased charging costs. In some cases, fleets are reporting that electric van running costs are now higher than diesel. Many are also finding it difficult to install home chargers on a widespread basis for their drivers and are having to build charging into the working day, which causes obvious disruption.
“Additionally, van drivers are generally proving much more resistant to electrification than their car counterparts. Even if they are one of the 30% who are able to have a home charger, a significant proportion don’t want their work van parked on their drive overnight while it is plugged in. This means they are having to use public charging, which can create problems over fair AER reimbursement. It is certainly not unknown for drivers to attempt to hand back their electric van to their employer and demand a return to their diesel.
“All of these problems need to be taken into account before you even start looking at the core issues of range and payload. While newer designs coming to market are starting to overcome these objections to a greater or lesser extent, they remain fundamental issues for many operators who are considering electric van adoption.”
Paul said that without widespread fleet first user adoption, there would be limited future supply of electric vans into the used sector.
“Unless businesses very quickly begin to operate electric vans on a large scale, there will be no real used electrified light commercial vehicle market of which to speak by 2030, which will affect everything from long-term national targets for net zero to localised plans for increasingly strict clean air zones in cities.
“Our view is very much that the government needs to take some control of the situation and find a way to kickstart electric van adoption that will provide an incentive large enough to overcome this range of issues and bring about a sea change in what looks like an increasingly tepid market. There is a very real chance that only van fleets with a corporate commitment to net zero will become 100% electric this decade and an equally real possibility that many others will drag their heels and instead operate diesel for as long as possible.”
Electrification and the impact of the recession look set to be the key fleet issues of 2023, the Association of Fleet Professionals is predicting.
Chair Paul Hollick said that that businesses would be looking to fleet managers to deliver more value than ever, especially when it came to cost control and carbon savings.
“Next year is going to be a tough one, no question, and there will be considerable pressure on fleet managers to produce results that help their employers make progress on their EV agenda while also controlling costs.
“Fuel expenditure is going to help drive this line of strategy, alongside environmental concerns. Petrol and diesel prices remain stubbornly high and the impending fuel duty increase will further concentrate minds. Even given that electricity prices could increase in the Spring when the government rethinks its price cap, electrification is going to look more attractive than ever in financial terms.
“Our aim as an organisation is to disseminate as much information about our members’ EV experiences as possible. Currently, several of the largest fleets within the AFP are deploying electric cars and vans in large numbers, and we are sharing their learnings as far and wide as possible through a variety of channels.”
A key challenge given these objectives, Paul said, was that vehicle supply was likely to remain poor for the whole of 2023, which would inevitably affect the rate of electrification.
“Different manufacturers are making different noises about whether production issues are likely to improve next year but the bottom line remains that there is a massive backlog to clear before the situation has any chance of improving. Electrification can only happen at the rate of supply.
“Of course, this creates a knock-on effect with many company vehicles now being operated well beyond their originally planned termination point, something that will also place considerable demands on fleet managers when it comes to keeping these cars and vans in compliant, roadworthy condition.”
In terms of AFP activity, Paul said that the organisation would be issuing its new Tax and Legislation Manifesto in early 2023, designed to set out its thinking in these key areas.
Paul said: “It’s positive that the recent fiscal statement provided much increased certainty over benefit in kind taxation and also that we’ve seen some action over AER but we’d like to keep the dialogue going with government to achieve further improvements in the latter as well as campaigning in a number of related areas. The document is in its final stages of preparation and we plan to issue it soon.”
More details about these courses can be found at www.theafp.co.uk.
The Association of Fleet Professionals’ 2023 Fleet Academy calendar has been announced, with an increased range of courses designed to help fleet managers enhance both their core skills and meet new challenges.
Paul Hollick, chair at the industry body, said that interest in training had been rising since the pandemic with this year’s courses being fully booked and, in light of current economic conditions, a board decision had been made to hold fees at their current level until at least the end of 2023.
“There’s been a definite increase in fleet managers looking to upskill to meet current and future fleet challenges such as electrification, so we are offering more training courses in 2023 with 85% more training spaces. Also, with finances being tough at the moment for many of our members, keeping fees down seems like the right course of action. In our view, good training should be accessible and affordable.”
Making the Switch to Electric Vehicles courses will run on 25th April, 8th June, 12th September and 5th December while the complementary Transition to eLCV is scheduled for 26th April, 14th June, 13th September and 6th December.
Strategic Fleet Vehicle Management is recommended for those with responsibility for managing a vehicle fleet and consists of a trio of two day training sessions. Cohorts start on 15th February (Midlands) and 9th May (Basingstoke). The course is also available in an online, distance-learning format. Funding and Finance for Fleet Professionals is a module from the Fleet Vehicle Strategic Management programme that is also available as a standalone two day course which will run on 7th and 8th March and 4th and 5th October.
Advanced Fleet Vehicle Management is the industry standard in professional fleet management, developing the advanced knowledge and skills required to run complex fleet operations, and is a valuable asset in developing senior fleet management teams. It starts on 21st March (Midlands) and consists of eight training days.
Finally, Introductory Fleet Vehicle Management is designed for anyone who is new to the fleet industry, developing in their role, or who needs a refresher in fleet basics. It can be started anytime as online, self-paced learning.
More details about the courses can be found at Education & Training – AFP (theafp.co.uk)
Membership and training fees for the Association of Fleet Professionals (AFP) are being frozen until at least the end of 2023 in recognition of what the organisation describes as “difficult times.”
Paul Hollick, chair at the industry body, said that there was a high level of awareness that both individual and corporate members would be facing increasing financial pressures in the year ahead.
“We’re living through a period of time when inflation is high, taxes are rising, growth is sluggish or non-existent, and there are significant rising costs, notably energy. Against this backdrop, the AFP board has decided that keeping fees at their current level for the foreseeable future is simply the right thing to do.
“These are difficult times and we are very much of the mind that, as a not-for-profit organisation that has healthy finances thanks to the considerable success we have enjoyed in attracting a substantial number of members since our formation two years ago, we have a responsibility to support the fleet sector at a practical level.”
The AFP offers two levels of fleet operator membership. The £99 AFP Individual Membership is for single applications from individuals employed in any fleet operator role while the AFP Fleet Operator Membership at £299 is for companies that directly manage car or light commercial vehicle operations and have multiple employees within the business with a fleet stakeholder interest.
AFP corporate memberships for fleet service providers are priced at platinum (£2,000), gold (£1,000), silver (£500) and bronze (£299) levels offering graduated benefits including the number of individual memberships provided, discounts on training and other activities, and the degree of presence on the AFP web site.
Membership benefits include use of the Member of the Association of Fleet Professionals (MAFP) designation and full access to the AFP online member area that provides best practice process and procedural guides, an online library of reference material and a forum where members can ask questions. There is also support from the AFP helpline and attendance at AFP webinars, fleet operator lunches and forums and the annual national member conference.
Further details on membership can be found at Membership Services – AFP (theafp.co.uk)