Changes in fuel duty and legislation at a local level are making it more expensive than ever to operate fleets.
New LCV registrations fell by 10% in 2025.
Matthew Briggs, CEO at Right Fuel Card, explains why small businesses are feeling the impact more.
Businesses, from sole traders to larger corporations, are constantly seeking ways to reduce their costs, and this is especially true when it comes to the operational expenses of their vehicles. Fluctuating fuel costs, the price of new vehicles, and changing legislation mean that business owners must constantly adapt and adjust plans for both the near future and the long term.
Smaller businesses are feeling the impact
Matthew Briggs, CEO at Right Fuel Card, explains, “While businesses of all sizes feel the effects of financial and legislative changes, it’s safe to say it’s SME’s that feel the brunt of it,” “They’re operating on much thinner margins and are much more susceptible to shifting landscapes, for example, the upcoming increase in fuel duty, which is sure to have some smaller fleet operators struggling to keep that margin anywhere near the same level.”
“Then there are other smaller decisions at the local government level, which affect small businesses to a much greater degree, mostly when it comes to parking. An increasing number of councils, such as Cardiff and Calderdale, are either upping parking costs or converting areas that were previously free into paid spaces in an effort to free up space. Unfortunately, this also has the effect of incurring additional costs to trades like electricians and plumbers who need to park in these areas to conduct their work, or even upping the cost of a permit to park outside their own homes.”
Used and EV markets thrive
As for businesses trying to adapt to these financial challenges, the evidence lies in evolving vehicle purchasing habits. According to SMMT, new LCV registrations fell by 10.3% in 20251, with vans seeing the largest drop at 20.7%, signalling how businesses are struggling to buy vehicles fresh off the line. Things are very different for EVs, with YOY EV registrations up by 44.7% in November2.
Commenting on these figures, Matthew states, “Electric vehicles are already often viewed as being cheaper options in the long run than their counterparts, but the exemption of commercial vehicles from new EV taxes is sure to have cemented this view even further, so we can expect to see the sales of electric vans and other commercial vehicles continue to rise in the near future.
Businesses are also turning to the second-hand market to help keep costs down, with 36% of used LCVs being listed between £10,000 and £20,000, potentially saving hundreds, if not thousands, when adding to their fleet.”
“It’s not surprising to see that the used market and EVs are where businesses are turning to,” Matthew continues, “as these markets are where the cost savings, both in the short and long-term, lie. New vehicles just aren’t as accessible as they once were, and in today’s landscape, business owners value a good deal more than ever. Before the new LCV market can recover, the incentives need to be there to entice buyers back.”
For more information about Right Fuel Card, please visit: https://www.rightfuelcard.co.uk/business/small-business-fuel-cards
ENDS
Sources:
1.https://www.smmt.co.uk/van-market-shrinks-in-2025-despite-ev-growth/
About Right Fuel Card
Right Fuel Card is an independent distributor of fuel cards with a mission: to simplify the fuel management of businesses across the UK. Right Fuel Card is proud to be part of Edenred, a leading digital platform for services and payments and the everyday companion for people at work, connecting 60 million users and 2 million partner merchants in 45 countries via close to 1 million corporate clients.
