‘Green Agenda’ Measures won’t Save HMG’s Bacon Ahead of Copenhagen

Date 10 December For immediate release Subject BDO’s Response to Pre-Budget Report BDO’s Response to Pre-Budget Report ‘Green Agenda’ Measures won’t Save HMG’s Bacon Ahead of Copenhagen The Chancellor’s Pre-Budget Report included a focus upon so-called green transport policies to encourage the use of low carbon vehicles and measures to promote alternative energy projects and low carbon industries. In particular, for a period of five years, electric cars will be exempt from the benefit in kind applied to company cars and electric vans will be exempt from the van fuel benefit charge. In addition, from 2010/11, businesses will be able to claim full tax relief in the first year on the cost of purchasing electric vans. Stuart Lisle Tax Partner, BDO LLP Southampton commented: “These incentives might appear generous at first glance, but the cost to the Exchequer is a mere £5million per annum, and therefore the benefit to taxpayers is very small. This is because the demand for, and availability of, low carbon vehicles is still relatively low. In light of the Copenhagen UN Climate Convention, more decisive measures might have been expected to reinforce the UK’s commitment to the green agenda. For example, an extension to the existing car scrappage scheme to encourage both individuals and businesses to purchase more fuel efficient vehicles would have demonstrated genuine commitment.” - Ends - Word Count: 194 Note to editors BDO LLP operates across the UK with some 3,000 partners and staff. BDO LLP is a UK limited liability partnership and a UK Member Firm of BDO International. BDO in Northern Ireland is a separate partnership operating under a licence agreement. BDO International is a world-wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity world-wide and no BDO Member Firm is responsible for the acts and omissions of another member. The network is coordinated by BDO Global Coordination B.V., incorporated in the Netherlands with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located. The combined fee income of all the BDO Member Firms was $5.14 billion in 2008. The global network has 1,095 offices in 110 countries and more than 44,000 partners and staff provide business advisory services throughout the world. BDO LLP and BDO Northern Ireland are both separately authorised and regulated by the Financial Services Authority to conduct investment business. BDO is the brand name for the BDO International network and for each of the BDO Member Firms. Contacts Tel: 020 7983 3590/2761 Email: Charlotte.freeman@bdo.co.uk Joy.frascinella@bdo.co.uk Gill.carson@bdo.co.uk http://www.bdo.uk.com/news.html http://twitter.com/BDOaccountantPR