The Chancellor has been blamed by experts for “record levels” of returned vehicles amid mass redundancies due to Rachel Reeves tax hikes in the Autumn Budget.
Last October the Chancellor insisted that her tax hikes will not affect “working people,” well it has and thousands are now either out of work or are soon to be.
As a result of mass redundancies new data shows there has been a 43% increase in hybrid and electric company cars being returned last month.
From 1 April the Chancellor’s Budget changes came in to affect with employer’s national insurance contributions (NIC) increasing from 13.8% to 15% plus a rise in the minimum wage.
Reeves also reduced NIC threshold from £9,100 to £5,000 and the minimum wage rise has created further financial burdens on businesses across the UK.
Andrew Leech, founder of Fleet Evolution and head of Mercia Fleet Management blames the Chancellor’s budget decisions which has led to mass redundancies meaning company cars are now in less demand.
Leech said, “It did not take a rocket scientist to realise that far from having no effect on working people, the Budget changes would have a profound effect on recruitment and retention of employees.
“The pigeons are clearly coming home to roost.
“Following on from Rachel Reeves’ misguided first Budget, which she said would not affect ‘working people’, we have seen record levels of returned vehicles due to redundancies of working people.”
