Spring Statement a ‘missed opportunity’, says NFDA
The National Franchised Dealers Association (NFDA) has described the Spring Statement as a ‘missed opportunity’ to stimulate the growth in the automotive sector.
It said that Chancellor Rachel Reeves failed to introduce incentives to stimulate electric vehicle sales, while offering no support for businesses facing a rise in costs.
Sue Robinson, chief executive, said: “The Chancellor’s statement provided no update on some of the issues affecting the automotive retail industry.
“NFDA remains of the view that raising employer National Insurance Contributions by 1.2% to 15% will significantly increase the cost of running a franchised dealership, particularly at a time when businesses are already facing pressure from rising energy costs and adapting to the shift towards electric vehicles.”
Electrification
Robinson continued: “Furthermore, the Spring Statement did not provide an update on the electrification of the UK car parc. This transition provides a huge economic opportunity for the UK and the government needs to be incentivising consumers to purchase a new vehicle, which will drive growth in the UK economy.”
“Overall, there were missed opportunities in the announcement to use the automotive sector to stimulate growth in the UK. NFDA will closely examine the finer details of the Statement to understand its full implications for the sector and will continue to work with Government lobbying on behalf of franchised vehicle dealers.”
