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Plans to increase walking and cycling in England include new powers for local authorities to fine drivers for motoring offences and the country’s first ‘zero-emission’ city.

The Prime Minister, Boris Johnson, outlined the Government’s plans today (Tuesday, July 28), following a commitment made in May to spend £2 billion encouraging more people to choose so-called active travel options.

They include, new enforcement powers that will allow local authorities, rather than the police, to enforce against moving traffic offences such as disregarding one-way systems or entering mandatory cycle lanes.

The change has already largely taken effect in London, where reports suggest it has significantly reduced police workload on traffic offences, allowing officers to prioritise more important matters, while also improving enforcement.

The Government is proposing that motorists be issued with a warning for a first offence, and fines for subsequent offences.

The changes to enforcement are just one small part of a package of measures published by the Department for Transport (DfT) in a new report – Gear change: a bold vision for cycling and walking.

Johnson argues that to build a healthier, more active nation, “we need the right infrastructure, training and support in place to give people the confidence to travel on two wheels.

“That’s why now is the time to shift gears and press ahead with our biggest and boldest plans yet to boost active travel – so that everyone can feel the transformative benefits of cycling.”

The report includes plans to create at least one zero-emission city. It says that the DfT is looking for at least one small or medium-sized city which wants to create a zero-emission transport system, with extensive bike lanes, an all-electric (or zero-emission) bus fleet, and a ban on nearly all petrol and diesel vehicles in the city centre, with deliveries made to consolidation hubs and the last mile being done by cargo bike or electric van.

The initiative could be done in conjunction with the existing competition for an all-electric bus town, it says.

PHYSICAL SEPARATION

Elsewhere in the report, it stresses that the Government will no longer fund new cycle route provision on busy roads which consist of painted markings or cycle symbols.

Instead, it wants to see as many as possible of the existing painted lanes upgraded with physical separation. It says that cycles must be treated as vehicles, not as pedestrians.

New cycle provision which involves sharing space with pedestrians, including at crossings, will also no longer be funded. Again, the report says it wants many of the existing facilities to be upgraded with physical separation.

Furthermore, it argues that a quicker way of providing safe, low-traffic cycling is to close roads to through traffic, usually with simple point closures, such as retractable bollards, or by camera enforcement. This, it says, may be useful where the road is too narrow for a separated cycle lane.

However, it stresses that the closure would only affect through traffic. Residents, visitors, or delivery drivers needing to reach anywhere along the road would still be able to do so – though they might have to approach from a different direction. For example, a small number of routes from key suburbs into a city could become bus and cycling corridors, it said.

Transport secretary Grant Shapps says that coronavirus has provided the country with a “once in a lifetime opportunity” to create a shift in attitudes.

“The measures we’ve set out today in this revolutionary plan will do just that. No matter your age, how far you’re travelling, or your current confidence on a bike – there are plans to help and support you.”

To encourage people to continue to take up cycling, cycle training will be made available for every child and adult who wants it, accessible through schools, local authorities or direct from cycle training schemes.

More cycle racks will also be installed at transport hubs, town and city centres and public buildings, and funding will go towards new bike hangars and on street storage for people who don’t have space to keep a bike at home.

CHANGES TO HIGHWAY CODE

Furthermore, the Government has launched a consultation on the Highway Code to better protect pedestrians and cyclists; improving legal protections for vulnerable road users; and raising safety standards on lorries.

The main alterations to the code being proposed are:

• Introducing a hierarchy of road users which ensures that those road users who can do the greatest harm have the greatest responsibility to reduce the danger or threat they may pose to others.
• Clarifying existing rules on pedestrian priority on pavements, to advise that drivers and riders should give way to pedestrians crossing or waiting to cross the road.
• Providing guidance on cyclist priority at junctions to advise drivers to give priority to cyclists at junctions when travelling straight ahead.
• Establishing guidance on safe passing distances and speeds when overtaking cyclists and horse riders.

BIKE REPAIR VOUCHERS

Alongside the launch of the strategy, today the first batch of bike repair vouchers worth £50 will be released.

The scheme aims to help more people choose cycling over public transport, with vouchers released in batches in order to help manage capacity across participating stores.

The first 50,000 will be available just before midnight tonight (Tuesday, July 28) on a first come first served basis to those who register online.

Government says it will work closely with industry during this first pilot launch to monitor its success and adapt the scheme as necessary before rolling it out more widely.

The impact of the COVID-19 pandemic on fleet operations and business travel

Sponsored by Sixt.

A discussion hosted by Fleet News on the UK business response to the fleet challenges presented by Covid-19.

A panel of experts will provide an insight into the trends and changes that they are seeing, before leading a debate and discussion among participants, including delegates, on future working practices, changes to travel policies, opportunities offered by mobility solutions and implications for fleet sizes, replacement cycles, funding methods and vehicle type.

Chaired by editor in chief Stephen Briers, in this 45-minute webinar, he will be in conversation with:

Dale Eynon is director of Defra Group Fleet Services and will give a fleet operator view of how covid-19 is affecting fleet operations

Kit Allwinter is senior consultant at AECOM and is a specialist in sustainable and active travel including shared mobility. He will provide a view on how Covid-19 is changing the way people travel and business working practices, etc. and the implications for travel and fleet activity, especially in urban areas

Paul Hollick, chair of the Association of Fleet Professionals. He’ll be representing the views of UK fleets, providing insight into how their operations are likely to evolve and change due to new working practices sparked by the coronavirus pandemic.

Simon Turner, campaign manager at Driving for Better Business, which has created a Covid-19 toolkit, driver app and management portal to help fleets back to business.

Stuart Donnelly, Sixt (sponsor)

Topics:

• Changes to working practices (agile/remote/office working)

• Changes to travel policies (travel to work, travel to client, travel to supplier etc)

• Implications for fleet size (new car/van sales demand)

• Impact on replacement cycles (new car sales demand) and annual mileage

• Impact on demand by vehicle type (EV, Hybrid, Petrol, Diesel)

• Changes in funding preference (fewer traditional 3-4-year contract hire lease agreements and more flexi-hire contracts?)

• Active travel policies (walk, cycle, other)

• Public transport policies (to work, at work)

• Role for other mobility preferences (car share, car clubs, mobility budgets)

By Graham Hill thanks to Fleet News

The Government is being urged to overhaul motoring taxation and replace it with road pricing as part of its plans for a ‘green’ recovery.

Facing a long-term decline in fuel duty from the electrification of vehicles, the change could stabilise tax revenues, while cutting congestion and emissions.

A poll taken at the Low Carbon Vehicle Partnership (LowCVP) annual conference showed a majority in favour of a new road-user charging scheme, with 60% backing the policy. Just more than a quarter (27%) voted against the measure.

The LowCVP survey also found that nine-in-10 respondents (91%) think the time is right for a more radical and rapid change in the decarbonisation of transport.

In a new report, Campaign for Better Transport also says the coronavirus pandemic has provided the Government with the ideal opportunity to overhaul the current tax regime.

It says a “new approach” to road pricing is needed that captures the impacts from use of the road space by vehicles, including congestion, air pollution and carbon emissions.

“Such variable, distance-based charging would reflect the impacts of individual journeys more appropriately and, unlike clean air zones or congestion charges, account for both pollution and congestion at the same time,” it said.

The report – Covid-19 Recovery: Renewing the transport system – details a charging mechanism based on distance travelled, time of day, location and level of emissions.

As the pace of electrification of road transport grows, the report argues that such a regime should provide a mechanism for charging vehicles according to their environmental impact and use of the road space.

Darren Shirley, chief executive of Campaign for Better Transport, said: “As the UK begins the process of recovery, the Government must now focus its ambition on accelerating the shift to sustainable transport.”

The Green Party and campaign group Greener Journeys are also making similar arguments for the introduction of road pricing.

London assembly member and Green Party local transport spokesperson, Caroline Russell, said it was “high time” the UK moved to this “modern and sophisticated” approach.

End fuel duty freeze

Claire Haigh, chief executive of Greener Journeys, wants road pricing introduced alongside ending the freeze in fuel duty.

“The Chancellor should take the opportunity of record low oil prices to increase fuel duty,” she said. “The money should be ring-fenced to incentivise the take-up of cleaner vehicles and improve public transport.

“At the very least, the Chancellor should end the freeze and increase fuel duty in line with inflation.”

The fleet sector has already shown it is receptive to road pricing as a replacement of other road and fuel duties. Fleet News has been calling for the Government to launch a feasibility study since its Fleet Industry Manifesto report in 2015.

Andrew Burn, partner and head of automotive at KPMG, told Fleet News: “It would be good to continue to keep fuel duty flat.”

He also doesn’t expect fleets to see a fuel duty reduction in the future as it does not play into the Government’s green agenda and net zero ambitions.

The fuel duty escalator was introduced in 1990 as an environmental tax to stem the increasing pollution and congestion from road transport, but it has been frozen since 2011.

The Institute for Fiscal Studies (IFS) estimates that the failure to increase rates in line with CPI inflation has cost the Treasury £5.5bn a year since 2010-11.

Revenue from fuel duties now stands at £28bn a year, which is 1.3% of national income. Revenue peaked at 2.2% of national income in 1999–2000. Had it remained at that level the Exchequer would currently be getting an extra £19bn.

In its Green Budget, published late last year, IFS highlighted how revenue from fuel duties had fallen since 2000 and called on the Government to consider road pricing to maintain its tax take.

New analysis by the RAC shows that fuel duty was down by £2.4bn in April and May compared to the same time last year.

Revenue from diesel duty (charged at 57.95p per litre like petrol) was hardest hit. Despite being the fuel of business, duty on diesel fell by 49% during April and May to £1.5bn compared to £2.9bn in 2019.

Revenue from duty on petrol fell to £251 million in May – the lowest figure since 1990 – and £383m in April, making a total of £634m.

Over the same two months in 2019 duty on petrol brought in £1.6bn (£799m in April and £822m in May).

In terms of monthly tax from fuel duty, the £946m raised in May was the 33rd lowest figure – only months from the early 1990s were lower when there were some 24m vehicles on Britain’s roads compared to the 31.8m today.

HMRC fuel duty receipts – £m
	Petrol	Diesel	Combined total
Apr-20	383	815	1,198
May-20	251	695	946
Total	634	1,510	2,144
Monthly average	317	755	1,072
Apr-19	799	1,528	2,327
May-19	822	1,411	2,233
Total	1,621	2,939	4,560
Monthly average	811	1,470	2,280
£ change 2019-2020	-987	-1,429	-2,416
% change 2019-2020	-61%	-49%	-53%

RAC head of roads policy Nicholas Lyes, described the lost tax revenue as a “further blow” to Treasury coffers.

“The temptation for the Chancellor might be to recoup some of the losses by increasing fuel duty, but with the country staring down the barrel of one of the sharpest recessions on record such a move would risk choking any economic recovery at a time when drivers and businesses are most struggling,” explained Lyes.

“This perhaps gives the Government a glimpse into the future of when fuel duty revenues start to decline more sharply with the rise of electric and other alternatively fuelled vehicles. Treasury officials might want to start thinking about how the Government approaches such a scenario considering fuel duty normally generates around £27bn a year.”

Fuel duty receipts will have increased as lockdown restrictions were eased, but the latest fuel sales figures from the Department for Business, Energy and Industrial Strategy show there is still some way to go.

Fuel sales at filling stations across the UK were 23% below pre-lockdown levels at the end of June. Diesel sales were 20% lower than before lockdown and petrol sales were 26% lower than would be expected.

In the eight weeks prior to lockdown being imposed on March 23, average daily road fuel sales were 17,690 litres per filling station.

The lowest average daily figure recorded was 2,500 litres, on April 12, at the peak of the pandemic.

Ashley Barnett, head of consultancy at Lex Autolease, told Fleet News that even if individual mileages remain below average, there are likely to be more vehicles on the roads as people avoid public transport due to the coronavirus.

“While Treasury income from fuel duty has dropped during lockdown, an increase in vehicles on the roads would address some of this.

“Longer-term, the reduction in income from fuel duty is the ‘elephant in the room’ when discussing the transition to electric vehicles (EVs), but we are many years away from there being a significant reduction in the annual amount generated.

“As the momentum shifts away from petrol and diesel, there may come a time where the Chancellor feels fuel duty can be increased, to encourage drivers who are cautious about making the switch to electric.

“At the same time, when EVs become sufficiently ‘mass market’, a more appropriate taxation method than fuel duty may need to be considered, especially if they continue to be cheaper than petrol and diesel on a wholelife cost basis.”

Tom Brewer, head of sales and marketing at Volkswagen Financial Services (VWFS) Fleet, added: “Clearly, the level of (electric vehicle) uptake now being seen will impact future tax receipts through reductions in company car tax, VED and fuel duty.

“Longer term alternatives to emissions-based taxation such as road pricing may well be viable in replacing VED and/or fuel duty.

“A debate on future taxation models is clearly going to be needed as the Exchequer looks to balance the books.”

PUBLIC FINANCES

Balancing the books will prove a difficult task for the Chancellor, Rishi Sunak, with the UK economy facing its biggest decline in 300 years.

The OBR suggests that the economy will shrink 12.4% in 2020, with borrowing expected to increase to the highest peacetime level.

The latest data shows borrowing grew by 1.8% in May.

It leaves the Government on course to borrow £372bn this year to pay for the shortfall between tax revenues and public spending.

In a recent HMRC report, the impact of coronavirus on Government coffers was visible in reductions in receipts collected across a number of taxes.

Tax officials said reductions were due to a combination of changes to payment timing, responses to Covid-19 policies and the emerging economic impacts of the pandemic.

The report added: “At this stage it is not possible to fully unpick how much of the fall in tax receipts relates to changes to the timing of payments and how much relates to changes in the underlying economic activity. The effects of Covid-19 on HMRC tax receipts will become clearer over time.”

The data showed total HMRC receipts for April and May 2020 were £45.2bn lower than in April and May 2019, mainly due to VAT (£25.6bn), income tax, capital gains tax and national insurance contributions (£9.8bn) and corporation tax (£5.4bn).

The OBR has also warned that the economy will not return to its pre-coronavirus size until the end of 2022, while unemployment is expected to rise to 12% by the end of this year, falling back to 10.1% in 2021.

Figures from the Office for National Statistics (ONS) show the number of workers on UK company payrolls fell by 649,000 between March and June.

However, unemployment has not yet surged, as many predict it eventually will, because large numbers of employers have put workers on the Government’s furlough scheme.

The latest data shows that more than nine million private sector workers are, effectively, on the Government payroll.

It should have therefore come as no surprise that the Chancellor’s summer statement failed to deliver any incentives for the fleet industry and the wider automotive sector.

So far, the Government’s plans for a ‘green’ economic recovery have focused on jobs and softening the blow of phasing out the furlough scheme.

In a £30bn give-away, Sunak announced a VAT cut on hospitality and offered firms a £1,000 per employee bonus to keep furloughed staff.

A much publicised possible scrappage scheme for electric vehicles (EVs) did not materialise, neither did a mooted VAT cut for the automotive sector.

SMMT ‘DISAPPOINTED’

Mike Hawes, chief executive of UK automotive trade body, the Society of Motor Manufacturers and Traders (SMMT), said he was “bitterly disappointed” the Chancellor had stopped short of supporting the industry.

However, a scrappage scheme costing hundreds of millions of pounds, proved a step too far for a Government facing record debt and a dwindling tax take.

Ben Creswick, managing director of JCT600 Vehicle Leasing Solutions (VLS), argued: “A scrappage scheme would not benefit the company car market, but existing incentives such as the plug-in car grant and new company car tax rates, which allow a driver to have an electric car for just a few pounds a month, are doing the job.

“The range of EVs is increasing and the low total cost of ownership means they are finding their way on to choice lists. Availability of product is the only concern.”

Paul Hollick, chair of the Association of Fleet Professionals (AFP), says its time to consider how the Government might balance the books. By Graham Hill thanks to Fleet News

Air quality improvements achieved during lockdown, if maintained, could weaken the case for clean air zones (CAZs).

It has been five years since the Department for Environment, Food and Rural Affairs (Defra) published a report highlighting the need for CAZs in six cities.

London, Birmingham, Derby, Leeds, Nottingham and Southampton were projected to fail EU air quality standards by the end of this year, unless action was taken.

Initial Government plans were challenged in the courts, by environmental lobby group Client Earth, for failing to tackle the problem in the shortest possible time.

The Government published its final plan for tackling roadside nitrogen dioxide (NO2) levels in 2017, with 61 local authorities in England now required to tackle illegal levels of pollution.

London introduced its ultra-low emission zone (ULEZ) in April 2019, forcing all but the cleanest vehicles to pay to drive into the city centre.

Several cities, including Leeds and Birmingham, have signalled their intention to follow suit, announcing charging zones of their own, with operators of non-compliant trucks and vans facing daily charges of up to £100 and £12.50 a day, respectively.

Nottingham has decided against a charging CAZ.

It has, instead, employed a range of other measures, including a workplace parking levy and investing in public transport, to ensure it reaches compliance in the shortest possible time.

POLLUTION LEVELS PLUMMET

Covid-19, however, has forced councils to reassess plans and sparked a rapid call for evidence from Government to fully understand the impact coronavirus is having on changes in air pollution emissions, concentrations and exposure.

In the first few weeks of the pandemic, the Government told Commercial Fleet it had agreed with Leeds, Birmingham and Bath to delay the introduction of CAZs in their areas until after January 1, 2021.

Other towns and cities planning to charge vehicles to drive into their CAZs, such as Bristol and Newcastle, were already planning to launch their schemes after that date.

The enforced delay has come as towns and cities are also reporting record reductions in pollution, with low levels of traffic due to lockdown.

In Oxford, 75% of NO2 comes from transport and, with roads clear of congestion, levels are now below the legal limit in the city centre for the first time in generations.

A city council spokesman said: “Since the beginning of lockdown we have seen a 65% reduction in air pollution levels in Oxford city centre.”

To put that historic reduction into perspective, over the decade to 2019, air pollution levels in Oxford had decreased by 36.8%.

It is set to become the first city to introduce a zero-emission zone (ZEZ) next summer, charging all petrol and diesel vehicles to enter the city centre.

Leeds City Council, which will charge Euro V or lower diesel HGVs £50 a day to enter its zone from January 1, 2021, at the earliest, gave no figures, but said pollution levels had fallen due to the quieter roads.

The council added that it was not possible to reliably predict the long-term impact that the coronavirus will have on traffic. However, it did not address the long-term viability of a charging CAZ, if air quality gains are maintained.

Instead, a Leeds City Council spokesman said: “We must be ready to introduce measures that can rapidly improve air quality if emissions begin to return to pre-Covid levels.

“At the same time, the council will continue to promote and enable a shift towards cleaner, greener travel and will encourage the widespread adoption of behaviours, technologies and policies that reduce emissions including use of electric vehicles and working from home.”

In Birmingham, where non-compliant HGVs will be charged £50 and vans £8 per day from January, 2021, at the earliest, the city council revealed that early analysis of the data suggests an average reduction in NO2 of some 36% from the day before the lockdown was introduced to just more than a month later.

The fall correlates to a similar dip in traffic levels, which were at about 30% of the ‘norm’ expected in April.

A Birmingham City Council spokesman explained: “While the Covid-19 lockdown measures have been in place, we have seen a significant reduction in road traffic and a reduction in the levels of nitrogen dioxide.”

However, he said: “As lockdown measures are eased it is highly likely the volume of traffic will increase, and the levels of nitrogen dioxide will return to pre-Covid levels.”

In Bath, where non-compliant HGV’s, buses and coaches will be charged £100, and  taxis and vans £9 from January 2021, at the earliest, the council estimates that the average level of NO2 has fallen by some 20% on where it would expect them at this time of year.

However, a spokesman for Bath and North East Somerset Council, said: “Currently there is no evidence that the improvement in air quality seen during the pandemic will be maintained.

“In light of messages around the use of public transport, the reduction of vehicles being updated and replaced for newer, cleaner vehicles and the need for social distancing the NO2 levels within Bath and North East Somerset may well soon continue at the pre-pandemic levels or increase further.”

He added: “Compliance is measured over an annual mean calculation and therefore short-term improvements cannot be taken as definitive proof of a wider trend. Therefore, to suspend or remove the plans would be premature.”

LONG-TERM AIR QUALITY IMPROVEMENTS

New figures from the Department for Transport (DfT) show how low traffic levels fell at the start of the lockdown, but also reveal they are far from back to pre-lockdown levels.

During the first full day of lockdown (Tuesday, March 24), car use fell to less than half (44%) of the expected level. Light commercial vehicle (LCV) use stood at 55%, HGV use at 84%.

Three months later and the day after retail outlets were allowed to open on Monday, June 15, car use had risen, but was still only at 70% of normal levels. Van use and HGV use had grown to 84% and 92%, respectively.

The latest DfT figures, for Monday, June 29,  show car use stood at 72%, van use 88% and HGV use 96%

In line with Government advice to avoid public transport, cycling levels have doubled during some weekdays and trebled at the weekend.

Meanwhile, national rail use remains extremely low at 11% and London tube use stands at just 16%.

Long term, technology will continue to reduce the need for face-to-face meetings and more people will continue to work from home or stagger start and finish times, cutting rush hour traffic.

A Fleet News survey shows more than half (53.6%) of fleet managers are currently working from home.

More than half (57.3%) of respondents also said that the majority of company cars they operate were not being driven for work.

It’s clear that the future of CAZs will rely on air quality improvements experienced during the lockdown being maintained long-term

.

But the Government CAZ framework states: “Where air quality has improved to the level required and there is evidence this improvement would be maintained, the Government expects local authorities to remove the elements of the zone that are no longer required at the earliest opportunity.”

A Government spokesman told Commercial Fleet it is committed to creating a “green legacy” from the pandemic and building on the unprecedented levels of walking and cycling seen across the country.

“Improving air quality as soon as possible remains vital and we continue to engage with local authorities and keep plans for all clean air zones under constant review,” he said.

TIME TO PAUSE

Natalie Chapman, Freight Transport Association (FTA) head of urban policy, believes Covid-19 presents an opportunity for central and local government to “pause and assess” whether CAZs are the most effective way to improve air quality long-term.

The FTA argues that CAZs will not provide any lasting benefit to air quality, as the Euro VI/6 vehicles required to enter a zone without charge will come into fleets of their own accord, as part of the natural fleet replacement cycle.

Euro VI has been mandatory in all new trucks since 2014; by the start of 2021 – when many of these CAZs are due to go live – FTA estimates that more than half of the UK truck fleet will already be Euro VI.

“The scheme will soon become redundant,” said Chapman. “Instead, Government would be better placed to adopt a more comprehensive range of measures, such as incentivising the uptake of alternatively fuelled and electric commercial vehicles, more effective management of congestion, and enabling more deliveries to be re-timed.”  By Graham Hill thanks to Fleet News

Fleet and business new car registrations are showing signs of recovery, but private demand is far greater, new figures from the Society of Motor Manufacturers and Traders (SMMT) show.

There were 72,550 new company cars registered to fleet and business users in June, a 10-fold increase on the 7,347 company cars sold in the previous month of May.

However, June’s fleet and business new car registrations were still 46% (60,749 units) down on the 133,299 company cars registered in June 2019.

Overall, there were 145,377 new cars registrations new last month, down 34.9% (78,044 units) on June 2019.

Private demand proved more resilient than business, down 19.2% in June with orders made pre-lockdown resulting in 72,827 registrations and accounting for more than half of the market.

The market is almost 616,000 units, or 48.5%, behind the same period last year. But, with one in five showrooms in England remaining shut throughout June, and those in Wales and Scotland unable to open until the end of the month, there remains some uncertainty regarding the true level of demand, says the SMMT.

Mike Hawes, SMMT’s chief executive, explained: “While it’s welcome to see demand rise above the rock-bottom levels we saw during lockdown, this is not a recovery and barely a restart.

“Many of June’s registrations could be attributed to customers finally being able to collect their pre-pandemic orders, and appetite for significant spending remains questionable.”

The hoped for release of pent-up sales has not yet occurred, says the SMMT, with consumer confidence for big ticket purchases looking weak meaning that automotive is likely to lag behind other retail sectors.

As the wider retail and hospitality sectors re-open and society and the economy begin a gradual return to normality, the true picture of consumer confidence is likely to emerge.

However, concerns remain with the Government’s Coronavirus Jobs Retention Scheme winding down and major employers across all sectors announcing significant job losses. The subsequent effect on livelihoods as well as on business and consumer confidence will not help a depressed market, it says.

The scale of the impact on the fleet sector can be seen in the results of a Fleet News survey in the June digital edition of Fleet News.

Fleets said they expected the long-term impact of coronavirus on operations to include reduced mileage, greater use of technology and fewer company cars.

Hawes said: “The Government must boost the economy, help customers feel safer in their jobs and in their spending and give businesses the confidence to invest in their fleets. Otherwise it runs the risk of losing billions more in revenue from this critical sector at a time when the public purse needs it more than ever.”

Jon Lawes, managing director of Hitachi Capital Vehicle Solutions, believes there are “positives” as the industry edges closer to pre-Covid-19 levels of output.

“With car showrooms and dealerships reopening from June, the month marks a significant improvement from the year on year comparisons for May and April (89% and 97%, respectively),” he said.

“New car production will be significantly down this year, but there will be a requirement for people to replace vehicles and we expect there to be a shift to a demand for used cars in the autumn.”

He continued: “Today’s figures also highlight a growing demand for electric and hybrid vehicles, which represent 21.7% of new registrations this year. 

“These figures will continue to increase as more EV product with longer range becomes available and more charging infrastructure boosts driver confidence.”

Electric Vehicle (EV) New Car Sales Surge

New battery electric vehicle (BEV) registrations increased massively last month (June), compared to June 2019.

There were 8,903 pure electric new cars registered in June – a 262% increase on the 2,461 pure EVs sold in the same month last year.

Diesel new car registrations were down 60% and petrol fell 40% compared to June 2019’s figures. Registrations of plug-in hybrid electric vehicles (PHEVs) were up 117% year-on-year, from 2,270 units in June 2019 to 4,926 PHEVs registered last month (June).

Ashley Barnett, head of consultancy at Lex Autolease, said: “The coronavirus outbreak has proven extremely challenging for the new vehicle market, but even during the height of lockdown, monthly EV registrations were still up year-on-year.

“We see emerging from lockdown as a clear opportunity to accelerate the progress that’s already been made in terms of cleaning up our roads – especially because a shift towards more flexible working patterns and the need for less business mileage could make EVs more practical for more people.”

The appetite for electrification is increasing among fleets, with leasing companies reporting record levels of demand from company car drivers, according to the June digital edition of Fleet News.

Company car drivers will pay no tax on a pure EV this tax year, while drivers of PHEVs are also enjoying much more favourable rates.

The RAC’s Rod Dennis said that it was a “significant milestone” that electrified vehicles of all forms accounted for more new cars than diesels, last month.

He continued: “Registrations of pure battery electric vehicles continue to remain strong, a trend that will hopefully continue as more come on to the market.”

Although, he said: “We are yet to see how the appetite for new cars among both fleets and private drivers will be affected by the coronavirus and a possible economic downturn.”

He added: “The number of new plug-in hybrids registered last month, while still strong, was far below pure electric vehicles.

“This is something to watch in the coming months as manufacturers begin to introduce new hybrid options for their existing vehicle models.

“It will be very interesting to see if more drivers opt one of these rather than commit to a vehicle entirely powered by batteries.”

Commenting on the overall new car market, Michael Woodward, UK automotive lead at Deloitte, said: “Despite the year-on-year decline in sales, these results will have exceeded many people’s expectations.

“Dealerships have worked hard to encourage consumers back through their doors. However, the full scale of these efforts may not be reflected in June’s figures as supply issues delay some registrations.”

Karen Johnson, head of retail and wholesale at Barclays Corporate Banking, added: “Looking ahead, further questions arise around how changing patterns in working environments and consumer attitudes might impact on car sales.

“On the one hand, many people are working from home and so don’t need a car to get themselves to work every day. Yet on the other hand, people are being advised to stay away from public transport and so may well need their own vehicle to simply get them from A to B.”  By Graham Hill thanks to Fleet News

A loss of confidence in public transport looks set to change how employees will travel to work as the Covid-19 pandemic lockdown eases, new research has found.

A survey by private hire company Addison Lee has found six out of 10 London commuters will change the way they travel when the return to work begins after lockdown.

Meanwhile, recruiter Robert Walters discovered 34% of UK employers surveyed are considering changing working hours to avoid busy commuting periods.

The Addison Lee research of 1,000 commuters across the capital’s 32 boroughs found 55% of commuters plan to change the time of their commute to avoid peak hours, 49% plan to use their own vehicle (up from 23% pre-pandemic), while 28% plan to complete at least part of their journey on foot.

It also found 40% plan to use private hire vehicles as part of their journey.

Liam Griffin, CEO of Addison Lee, said: “Our research shows a clear shift away from commuting on public transport due to safety concerns.”

It reports 69% of respondents say that, even with the introduction of face coverings, taking public transport to and from work makes them feel anxious, while 72% say they will avoid using the tube during their commute unless essential when they return to work.

In response to the research, Addison Lee is asking the London Covid-19 Transition Board to make the safe return to work a priority and actively work with all the capital’s transport providers on a common set of safety standards.

It says this will give commuters confidence to return to work using a variety of means of transport that respect social distancing and the capital’s environmental needs.

The Robert Walters survey found 49%of employers are planning to stagger return to work based on employees’ own health risks related to Covid-19, while 46% will be staggering their return depending on how critical their role is to the business.

Its full findings are:

What strategies are UK employers considering (or have implemented) to bring employees back to work
Staggering return to work based on employees’ own health risks related to COVID-19 (e.g. respiratory or chronic conditions)	49%
Staggering employees return depending on how critical their role is to the business	46%
Creating smaller workgroups to limit mixing of employees/groups in the workplace	40%
Changing working hours to avoid busy commuting periods	34%
Offering employees the opportunity to volunteer to come back to the office	33%
Splitting employees into shifts based on specific criteria (e.g. by name A-M and P-Z work different days)	28%
Returning to work strategies will be based on local infection rates and risk (e.g. different strategies by location)	28%
Not sure, we have not yet considered a return to work strategy	29%

Lucy Bisset, director at Robert Walters, said: “What the research highlights is that despite the success of home working, employers are keen to start encouraging their staff back into the workplace and are happy to take necessary steps and put procedures in place to help enable this.

“A return to office brings about many perks, including social inclusion, better workplace collaboration, a separation of homelife, and a reinforcement of company values.

“What employers need to do is merge the perks of office-life with what people have been enjoying about working from home; for example – flexi-hours, a relaxed atmosphere, and avoidance of busy commute times.”

Robert Walters also found 87% of employees would like more opportunities to work from home post-return, with 21% stating they would like to work from home permanently.

While 83% of firms have stated that the experience of Covid-19 will encourage business heads to have employees to work from home more often, they also cite concerns over employee productivity (64%), senior leadership preferring traditional ways of working (57%), and the nature of the business e.g. face-to-face sales (36%), as the key barriers to achieving this.

They also expect the long-term impact of coronavirus on operations to include reduced mileage, greater use of technology and fewer company cars.  By Graham Hill thanks to Fleet News

Extra and Westmorland have been rated England’s best motorway service operators by visitors in the independent transport user watchdog’s latest survey.

In the fourth annual survey, Transport Focus asked almost 10,000 customers about their experience at all 112 motorway services in England, between February and March before the coronavirus lockdown. Visitors had their say on facilities such as toilets, staffing, food and drink.

Extra, operator of six sites in the survey and Westmorland, which operates four sites, achieved the joint highest overall satisfaction score (97%). Compared to last year’s survey, Extra saw a significant increase in satisfaction of eight percentage points to 97%. Westmorland had the most ‘very satisfied’ visitors at 87%.

Across the country as a whole, motorway service operators performed well with 93% of visitors satisfied with their experience (an improvement on last year’s 90% and the highest score since the survey started).

Visitors were least satisfied with the value for money of the food or drink they bought to eat in the services at 69%. Those who drive for a living, which includes HGV drivers, were the least satisfied at 89%, however, this has increased from 83% in 2019.

Anthony Smith, chief executive of the independent watchdog Transport Focus, said: “As the country emerges out of lockdown and people take to the roads for staycations this summer, motorway services will provide a vital opportunity for drivers to take a break on their journey.

“Motorway services provide customers with a great experience with friendly and helpful staff, but there is still room for improvement when it comes to the value for money of the food and drink on offer.”

Drivers were also asked what impact their visit to the motorway services had on their mood on arrival and when leaving the services. 2% of visitors say they arrive feeling tired, frustrated or stressed. The visit to services significantly reduces visitors’ negative mood to just 5%.

Euro Garages has the biggest year-on-year increase in satisfaction from 86% to 96%.

All three of the larger operators saw an increase in satisfaction this year; Roadchef (up from 92% to 95%), Moto (up from 90% to 93% and Welcome Break (up from 90% to 92%).

Overall, the survey found:

89% of visitors were satisfied with the cleanliness of the toilets

69% of visitors thought the food or drink they bought to eat in the services was value for money

94% of visitors buying food or drink rated the friendliness and helpfulness of staff as good

This year visitors were also asked how they thought the services they stopped at compared to others. Across the four Westmorland sites 94% of visitors felt they were ‘better’ in comparison to other services they had visited.

Euro Garages (two sites) and Extra (six sites) both had more than half of visitors describing these services as ‘better’ in comparison to others they had previously visited. By Graham Hill thanks to Fleet News

The Met Police has reported a 71% increase in drivers caught speeding in London during lockdown, while other forces saw a decrease in offences, new figures suggest.

The BBC reports that, according to a Freedom of Information (FOI) request submitted by the PA news agency, the Met Police issued 3,282 Traffic Offence Reports to drivers suspected of exceeding the limit in April, compared with 1,922 in April 2019.

London’s roadside cameras caught a further 14,736 people in April 2020 – the first full month of lockdown.

Speeding data obtained from other forces also showed areas reporting an increase in the number of drivers caught for speeding. Kent Police and Derbyshire Constabulary reported year-on-year rises, up 53% and 41% respectively.

Fleet News has reported how police forces across the UK have caught drivers speeding during the lockdown, with one driver breaking the legal limit by 81mph and another clocked doing 108mph in a 40mph zone.

However, the majority of forces who provided data to the most recent FOI request recorded an overall decrease, amid a reduction in traffic levels of around two-thirds as the lockdown was in full effect.

It showed that 13 forces did see an increase in the speed of the fastest drivers caught, including in Dyfed-Powys, North Yorkshire, Police Scotland and West Mercia.

In London, the highest speeds recorded during the lockdown were: 163mph on a 70mph road; 134mph on a 40mph road; 110mph on a 30mph road; and 73mph on a 20mph road.

In separate research, five forces – Northamptonshire, Gwent, Staffordshire, Kent and Humberside – all caught motorists driving at speeds in excess of 130mph on the motorway and three others – Police Scotland, the Met and Lancashire – recorded drivers at speeds in excess of 120mph.

Derbyshire’s fastest offender was clocked at 108mph, but that was on a stretch of the M1 with a 40mph limit – 68mph above the speed limit.

Det Supt Andy Cox of the Metropolitan Police told the BBC that many drivers caught speeding during the early weeks of lockdown did not expect officers to be patrolling near-deserted roads.

“Early on, for some people driving at extreme speeds, they would be really surprised to see us there,” he said. “They would actually come out and say ‘we thought you’d be busy dealing with Covid’.

“Maybe some people advantage because congestion was less and thought they’d get away with it.”

FLEETS WARNED

Licence Bureau says that the current reduction in traffic volumes, the incidents of speeding reported by police, and reduced driving activity for many employees combined with mounting economic business pressures, is creating a ‘perfect storm’ fleets need to pay special attention to.

Steve Pinchen, sales director at Licence Bureau, explained: “There is so much at play right now, but businesses really must ensure they do not drop the ball when it comes to legal compliance.

“Business driver road safety and duty of care, arguably more so now than ever, need to be at the top of the priority list for fleet operators.”

With employees returning from furlough, some of whom may not have driven for months, Pinchen argues that organisations have got to take a “pragmatic approach” by providing support and creating responsible cultures from individual drivers to senior management level.

The laws surrounding ‘driving for work’ include, amongst others, Corporate Manslaughter and Corporate Homicide Act 2007; Health and Safety at Work Act 1974; and Road Traffic Act 1988 & 1991.

Renown Consultants was ordered to pay £750,000 in fines and costs last month, after being found guilty of serious health and safety failings.

In the June digital edition of Fleet News, experts speculate police may have feared failure had they charged Renown Consultants with corporate manslaughter.

Pinchen said: “Legal compliance; health and safety; duty of care – they are all part of an organisation’s responsibilities.

“At any given moment, a business needs to be able to demonstrate that it has done everything reasonably possible to reduce risks.

“Even in the ‘new norm’ these laws remain unchanged and all organisations need to have a sharp focus on the task at hand as everyone starts to re-find their feet.”  By Graham Hill thanks to Fleet News

The clustering of electric vehicles (EVs) may already be more common than many people expect, applications to join the Electric Nation Vehicle to Grid (V2G) trial suggest. 

The project aims to demonstrate how V2G technology can provide a solution to potential electricity grid capacity issues as the numbers of EVs increase.

More than one in five (20%) of the applicants to the Electric Nation Vehicle to Grid trial already have two or more EVs at their property, and 48% are either likely or very likely to acquire a second EV in the future, or they have already ordered a second EV.

Although the Electric Nation Vehicle to Grid trial is currently only recruiting households with one EV, these figures show that numbers of EVs per household are rising alongside increasing nationwide EV adoption rates.

Charging an electric vehicle at home is equivalent to an extra house in terms of electricity demand.

With many households liking their electric car so much that they either already have a second EV or are considering getting one in the near future, this ‘clustering’ will place further load on the local electricity network.

However, by using V2G technology, EVs can put energy back into the grid at peak times, so reducing the need for extra electricity generation or network reinforcement.

Electric Nation – a project of Western Power Distribution (WPD), in partnership with CrowdCharge – is recruiting 100 Nissan EV owners in the WPD licence areas of the Midlands, South West and South Wales to take part in the trial of Vehicle to Grid smart charging technology. Currently, only Nissan EVs are able to be used for V2G charging due to their CHAdeMO technology.

One week after the Electric Nation V2G project was launched, 200 EV drivers had applied to join the project, and the following data had emerged:

• 95% of applicants have a Nissan LEAF, 5% have a Nissan e-NV200

• 20% of applicants currently have two EVs at their property

• 1% of applicants have more than two EVs at their property

• 3% of applicants with one EV have ordered a second EV

• 18% of applicants with one EV are very likely to acquire a second EV in the future

• 27% of applicants with one EV are likely to acquire a second EV in the future

• 41% of applicants with two EVs also had a Nissan LEAF as their second EV.

As well as many households having more than one EV, applicants are already taking action in the area of energy, with 45% having solar PV installed at their property, and 14% having a domestic stationary battery storage device.

With fleets, as the uptake of electric company cars increases due to favourable benefit-in-kind (BIK) tax bills and increasing vehicle availability, Fleet News looks at how will become more important for organisations to introduce charge points at workplaces.

The Electric Nation Vehicle to Grid trial is offering the free installation of V2G smart chargers worth £5,500 to Nissan electric vehicle (EV) drivers who live in the three WPD regions.

CrowdCharge is recruiting 100 people for the trial to help Distribution Network Operators (DNOs) and others to understand how V2G charging could work with their electricity networks.

The V2G trial follows the first Electric Nation project, which at the time was the world’s largest EV smart charging trial, providing real life insight into people’s habits when charging their vehicle.

The trial provided data from more than two million hours of car charging, revealing the user habits on timings of charge, where and for how long, as well as the impact of different tariffs.

By plugging in at specified times and putting energy back into the grid, active participants of the Electric Nation Vehicle to Grid project are expected to earn a minimum reward up to the monetary value of £120, available over the one-year trial period from March 2021 to March 2022. Recruitment is taking place from June 2020.

Trial applicants:

• Must be resident in the Western Power Distribution (WPD) licence area (Midlands, South West and South Wales)

• Must have a Nissan EV with a battery capacity of at least 30kWh or more

• Need to have the vehicle until the end of the trial (March 2022)

• Need to have off-road parking

• Will use the CrowdCharge mobile app to manage charging

• May need to switch to a new energy tariff if required by their assigned project energy supplier

• May need to have a new smart meter put in/updated as part of the project participation.

Although the application process for the Electric Nation Vehicle to Grid project is now open, the timescale for charger installations is subject to confirmation based on government advice in relation to Covid-19.  By Graham Hill thanks to Fleet News

Used car values for models less than two years old have dropped in June while prices for older, cheaper cars have risen, according to Cap HPI.

The average movement of five-year old cars is 1.2%, or £70, up during June, while 10-year old cars have increased by an unprecedented average of 5.7% or £140, at a time of the year when values invariably drop.

The overall price movement at the typical three-year, 60,000-mile fleet replacement point was an increase of 0.3%, the first average upward movement in June since 2009.

Values for younger vehicles dropped by 0.4% in the same period, however, they started to strengthen by June 15 as dealers became more active.

Derren Martin, head of valuations UK at cap hpi, said: “The strength of the used car market through June has taken even the most optimistic within the industry by surprise.

The question ‘how long does this carry on for?’ is one being asked far and wide at the moment, and there is no historical precedent to reference.

“Our Live valuation service will continue to track the market daily, and any fluctuations over the coming weeks will be reported real-time. As has happened in June, values for specific models can change in different directions over days or weeks, so keeping a close eye on daily valuations is essential at this time.”

Convertibles and cabriolets are among those that have been sought after, particularly models more than three-years-old.

While demand has been a significant factor in the average price movements, shortages of supply have also played their part says Cap HPI. The lack of new car activity has led to a shortfall in the numbers of part-exchanges being generated.

Logistics issues have also become a significant problem for the industry, with delivery lead times going from around 72-hours in early March to approximately 15-days in June.

Martin added: “Generally, the adage ‘what goes up must come down’  rings true with used car prices and is proven by movements in cap hpi used values over the years.

Once the current pent-up demand is exhausted and the supply chain gets back up to closer to full capacity, the market is likely to see volumes appear from lease and other finance extensions.

While this may not happen in July, it seems almost inevitable that the current strength is unsustainable and supply will at some point outweigh demand, maybe towards the end of the summer.”

Following the Coronavirus pandemic, fleet operators expect to have fewer cars and lower average mileages as the country faces severe economic decline. As the fleet sector curretly accouns for more than half of new car registrations, the knock on effect for the used market could be significant.  By Graham Hill thanks to Fleet News

A surge of unsafe vehicles are returning the UK’s roads as Coronavirus lockdown restrictions ease, warns Aviva.

It found that more than a quarter (28%) of drivers have not performed any checks on their vehicles at all throughout lockdown.

Aviva’s research into motorists’ attitudes to driving post-lockdown reveals there could be an increase in the number of potentially dangerous vehicles on roads, with many motorists forgoing vehicle safety checks in recent months.

More than two thirds of drivers have not checked their tyre treads (68%) or engine oil levels (68%). In addition, six out of 10 (60%) haven’t tested their tyre pressures and two thirds (67%) haven’t looked at their lights.

In contrast, almost half of drivers (43%) have ensured their vehicles have looked the part by cleaning them during this time.

Sarah Applegate, head of global strategy and insight at Aviva, said: “This latest research reveals motorists’ caution about driving as lockdown conditions ease. Drivers will inevitably be using their cars more often as restrictions lift and non-essential shops start to reopen, so they should prepare for this by ensuring their vehicles are up to scratch.

“To make sure our roads stay as safe as possible, drivers should carry out basic checks before they use their cars again. If people have any concerns about their vehicles, they should ask a professional mechanic to investigate, particularly before embarking on longer journeys.

“It’s also important for drivers to make sure their insurance policy suits their future driving needs. If people are likely to use their car significantly more or less post-lockdown, or drivers need to be added or removed from policies, they should inform their insurance provider so their cover can be updated.”

Since the start of lockdown, there have been five million fewer MOT tests carried out in April and May 2020 than in the same months last year.

Any motorists with an MOT test due from March 30 have automatically been given a six-month extension as part of the Coronavirus lockdown, leaving many cars, vans and motorcycles unchecked, potentially allowing unroadworthy vehicles to be driven.

Despite this, many drivers plan to take long journeys using their car as lockdown restrictions ease. One in five (20%) plan to use their car to travel to a holiday destination in another part of the UK in the next three months, while one in ten (10%) will use their car to drive to the countryside.

Ian Leonard, head of fleet operations at Yodel, advises all drivers to check their vehicles thoroughly before returning the road. By Graham Hill thanks to Fleet News