Fleet Insurance Experts Voice Concern About VAT Rising To 20 Per Cent

LONDON, ENGLAND, January 22, 2011 (Press-News.org) Experts in the fleet insurance ( http://www.cover4fleetinsurance.co.uk ) industry have voiced their concern about the VAT rise of 2.5% of 4th January 2011, bringing it up to a total of 20%. Coupled with the fuel duty rise of 1st January, this cost may be too much for some fleet operators.

Even before these rises of early 2011, previous rises in fuel prices had left operators dealing with diesel prices of 9 pence more per litre than just a year ago. In terms of running costs for an articulated truck this meant an annual increase of GBP3800. It is estimated that these additional rises will add on another GBP1200 to this, bringing the overall increase to a huge total of GBP5000.

From the government's perspective for the fuel duty rises, each penny increase in fuel duty raises an extra GBP500 million for the Exchequer. However in reality both fleet operators and the public motorists may find these accumulating costs too much and they may need to find ways to cut back on the miles driven each year. This in turn will not have the desired effect for the Exchequer, which could turn it into a no-win situation over time.

The same applies to the VAT increase. As the economy is still in a fragile state, many industry experts feel that this could also have an adverse effect. The Electrical Contractors Association, being one example, feels that these decisions could encourage the UK to spend less. They suggested that instead what may have been a more long term and braver concept would have been to cut VAT by 5% in certain key sectors.

Labour Leader Ed Miliband stated that the VAT rise is the "wrong tax, at the wrong time." Certain business groups have requested that the government would delay the move due to the severe weather conditions experienced over the winter, in order to give retailers a chance to make up for the disappointing run up to Christmas.

Cover 4 Fleet Insurance, the fleet insurance experts, feel that it will pose extra challenges to already challenged fleet operators. Having been in the insurance industry for over 60 years they understand their market intimately. During the recession they have worked hard on behalf of their clients to find the best fleet insurance packages, in order to support them during these trying times.

With friendly service and expert advice, Cover 4 Fleet Insurance is very competitive when it comes to motor fleet insurance. They have a dedicated team who will work on your behalf to find the best balance between the right cover and a low cost commercial fleet insurance ( http://www.cover4fleetinsurance.co.uk ) policy.