Autumn Budget must ‘drive growth, not hamper it’, warns SMMT
Ahead of this Wednesday’s Autumn Budget, the SMMT has repeated its call to government to announce measure that ‘drive growth, not hamper it.’
It has said warned that proposals to introduce pay-per-mile tax for electric vehicles could stall uptake, while ending the Employee Car Ownership Scheme could risk up to 80,000 new car sales a year.
SMMT CEO Mike Hawes said: “Removing barriers to growth in the electric car market is even more pressing, given the sector faces tough and pressing mandated targets to decarbonise.
“Industry is right to be deeply concerned, therefore, by the rumoured Autumn Budget proposals for pay-per-mile for EVs. a move which risks deterring consumers, adding to existing fiscal disincentives such as the VED Expensive Car Supplement and higher VAT on public charging.
“There is no doubt that government revenues from fuel duty are being eroded as more drivers move away from fossil fuelled vehicles. Rather than single out a particular technology – one that the industry is challenged to grow – we need a fundamental rethink of road taxes to ensure we have a more strategically aligned, fair and future-ready taxation system.”
He continued: “The budget must also prioritise growth. Growth of the economy, growth of industry and growth of the market. The last budget actually put new car market growth in jeopardy, however, with plans to end Employee Car Ownership Schemes (ECOS).
“The measure risks up to 80,000 new car sales annually, with a severe hit to profitability, jobs and a half billion pound hole in Treasury tax income. It is a counterproductive approach, therefore, just when industry and government need to drive growth, not hamper it and must be reversed.”
