The UK could save almost £3 billion a year if businesses switch to greener company cars, a study has revealed.
Research carried out by independent environmental organisation the Energy Saving Trust has found that when new Government tax breaks come into force on Sunday 6 April 2008, if UK companies all choose vehicles with 120g/km or fewer carbon dioxide emissions there could be £250m saving for UK employers through reduced National Insurance contributions. In addition £645m could be saved for UK employees through reduced Benefit in Kind income tax contributions plus £780m savings for UK employers through reduced fuel consumption.
Further savings of £1.2 billion can be made on the fuel bill of company cars driven privately. Who on earth had to sit down and work out these figures?
The study of 400 board-level executives at organisations across the UK found that only seven per cent of companies offer a financial reward to employees to choose a smaller, cheaper or lower carbon vehicle. In addition, more than half of companies (51 per cent) that provide cars do not have a Corporate Social Responsibility (CSR) or environmental policy. And of those that do, only one third consider the environmental impact of the vehicles they provide. Come on companies; make the competitors green with envy as your staff bask in their new found wealth.