Spending review sets crucial tone – NFDA
The National Franchised Dealers Association has offered a lukewarm response to the government’s spending review, announced today by Chancellor Rachel Reeves.
It has welcomed the investment in apprenticeships and support for electric vehicles, but said other key issues have either not been addressed or addressed in too little detail.
CEO Sue Robinson said: “The government’s Spending Review sets a crucial tone for the coming years and while it is welcome to see investment directed toward infrastructure, skills and EVs, Chancellor Rachel Reeves MP’s review, similar to the Spring Statement, has left some issues in the dark.
“Firstly, the £15.6bn transport package and renewed focus on regional connectivity are positive signals for dealer networks and supply chains across the North and Midlands. Efficient transport infrastructure supports business mobility/customer access and ultimately boosts confidence across local economies where many of our members operate.”
Clean Energy
Robinson continued: “The government has briefly addressed electric vehicles (EVs) and decarbonisation. As part of the government’s Clean Energy mission, the settlement commits £2.6bn over Phase 2 to decarbonise transport, including:
- £1.4bn to support continued uptake of electric vehicles, including vans and heavy goods vehicles (HGVs)
- £400m for the further rollout of charging infrastructure, building on the almost 80,000 public charging devices already available
- Extending the Advanced Fuels Fund to 2029-30 to support the production of sustainable aviation fuel
- Investing £616m to build and maintain walking and cycling infrastructure
“NFDA acknowledges this investment for EVs, however the government needs to clarify how this £1.4bn will be spent and we still remain of the view that the government needs to be incentivising consumers to purchase a new vehicle by improving charging infrastructure as well as addressing EV tax hikes.
“It is encouraging to see the Chancellor address apprenticeships in the Spending Review, bringing much needed funding in the form of £1.2bn for young people to enter training and upskilling programmes. This is a positive action to address the rising unemployment according to the Office for National Statistics and 16,000 job vacancies in the automotive sector.
“NFDA will continue to lobby the government to ensure our members’ concerns are heard in forthcoming policy developments.”
