Autumn Budget must present ‘clear strategy’ for automotive
The National Franchised Dealers Association has called for a ‘clear strategy’ around UK automotive to be announced in next week’s Autumn Budget.
Its budget proposal addresses tax incentives around electric vehicles, the ZEV mandate deadline, fuel duty, and inheritance tax reform.
It also addresses the skills crisis by calling for the removal of apprenticeship levy clawback, as well as renewed focus on electric vehicle charging infrastructure and removing business rates stealth tax.
Sue Robinson, chief executive of the NFDA, said: “The upcoming Autumn Budget is a vital opportunity to articulate a clear strategy for the UK automotive retail sector. Employing around 600,000 people, 78% of the UK’s automotive workforce, and generating close to £200bn in turnover, our sector is fundamental to the economy.”
Electric vehicles
The NFDA has stressed the need for greater investment in the UK’s charging network, particularly in rural regions. While the government has set a target of installing 300,000 public charge points by 2030, the NFDA is calling for an annual delivery mandate to guarantee steady progress and nationwide coverage.
Vehicle Excise Duty
Meanwhile, the NFDA has said the expensive car supplement in the VED road fund license is currently a big disincentive to buying a new electric vehicle and wants to see it scrapped or expanded to £50,000 to increase the demand.
Employee Car Ownership Scheme
The NFDA is also urging the government to reconsider its plans to scrap the ECOS scheme, warning that the proposed changes risk reducing the attractiveness of employment within the industry and could lead to a fall in the number of new cars being registered.
Robinson concluded: “NFDA will closely monitor these issues next Wednesday and hopes to see the upcoming Autumn Budget provide the clarity and support our sector needs. Post Budget, we will continue to engage with policymakers at our parliamentary dinner in January.”
