One thing everyone can agree on about Brexit is that it’s been number one on the news agenda for what feels like a very long time. Now as the date of leaving edges ever closer, what should fleet operators be aware of?
Brexit: the latest developments
Parliamentary procedure has taken many twists and turns already this month. The government has been defeated in a number of key votes, but won a No Confidence motion.
The House of Commons rejected Theresa May’s withdrawal deal on 15th January, meaning that no agreement has yet been reached on the terms of the UK’s exit.
With the country on course to leave the EU on 29th March, both the government and businesses have stepped up preparations for all scenarios, including the no-deal Brexit scenario.
Tariffs on imports of vehicles and parts
In the event of no trade deal being agreed, imposition of tariffs on imported parts may impact the costs of fleet maintenance, while the price of vehicles made partly or wholly on the Continent would also be uncertain.
Licensing
Licensing arrangements may change for fleets and vehicles driving to and from Continental Europe. New licences and registration certificates may need to be introduced. This is still unclear and greatly depends on the withdrawal agreement and trade deal negotiated, if any.
Insurance
Currently, the UK is part of the ‘free circulation zone’, meaning that UK motor insurance is valid across the EU as well. Indications at the moment are that this will remain in place.
Emissions Targets
EU directives have been a major influence on emissions policy in the UK, but with the country set to leave, the government has published plans for its own equivalent system. Currently, that body looks set to keep the same emissions targets, although things may change in future.
Fuel Prices
The price of fuel is affected by many factors: global geopolitics, wholesale prices, supply and inflation among them. It’s difficult to gauge exactly how, if at all, Brexit will impact fuel prices. If the pound continues to fall, the relative cost of imported goods – including fuel – increases.
Irrespective of the final outcome of Brexit, there are likely to be both opportunities and threats for fleets and the subject will inevitably remain the source of much debate for some time to come.
