APRIL 2024 AFTERMARKET 11 www.aftermarketonline.net Unfortunately, there was nothing forthcoming in this area and this was a Budget that was very much about the politics of the forthcoming general election.” Startline Motor Finance CEO Paul Burgess said: “Overwhelmingly, this was a Budget aimed at voters rather than businesses, with the general election only a matter of months away. We carried out some research a couple of weeks ago that showed what motorists overwhelmingly want from the next Government – whoever that turns out to be – is to resolve the pothole crisis and bring down fuel costs.” James Tew, CEO at iVendi, said: “With the used car market in reasonably strong health and figures showing that the new car market had its best February for 20 years, it’s probably unlikely that the Government was ever going to provide any new forms of support for our sector in this Budget, even if there are various voices asking for more help during the process of electrification. While the reduction in National Insurance might make a few people more likely to swap their car, the truth is that we appear to be in the middle of a long period when growth is flatlining, and general consumer and economic confidence is similarly, largely in check. Whether the general election later this year will start to change that situation and bring a degree of optimism is an unknown.” Unnecessary costs The AA saw the fuel duty freeze as a positive move, but thought more could have been done to help motorists, as AA Head of Roads Policy Jack Cousens observed: “The AA is disappointed that the Chancellor did not review Insurance Premium Tax (IPT). This levy on responsible motoring, has added such a financial burden on car ownership, especially younger drivers, that it’s estimated that a million people drive without insurance. It’s not only illegal but it adds unnecessary costs and worry to every law-abiding driver. Similarly, not equalising the VAT on public charging of EVs with domestic charging is a missed opportunity to encourage more car owners to switch to an EV and contribute towards the UK goal of Net Zero.” Critical year Continuing the chorus of sector disappointment on the lack of support for the shift to EVs, NFDA Chief Executive Sue Robinson said: “2024 is a critical year for the automotive retail industry. As such, the Budget provided a significant moment for the Government to provide a strategic and clear vision to support the sector but that opportunity has largely been missed. With the Chancellor’s Spring Budget failing to mention private EV price incentives, the UK remains one of the major markets in Europe with little to offer in terms of price incentives for private buyers of electric vehicles.” Commenting on the business rates side, Sue noted: “These rates are now at the highest level ever at 54p in the pound, a drastic increase compared to 34p in the pound when they were first introduced in 1990.” On the lack of measure to reform the Apprenticeship Levy, Sue said: “It is concerning that once again the Chancellor has failed to fix the existing, unworkable Apprenticeship Levy in this latest fiscal event. The motor retail sector experienced its highest vacancy rate in 2023.” Prudent Coming back to the potential impact on garages, Kevan Wooden, CEO at LKQ UK & Ireland, said: “Garages and workshops will find few gifts for them in the Spring Budget – with the Chancellor largely focused on addressing the consumer tax burden, while continuing to toe a cautious line on public spending as the economy gets back on track. “A handful of the industry’s smallest players will benefit from the threshold for VAT registration increasing from £85,000 to £90,000. This could help to free-up vital cash for investment in the skills and equipment needed to supercharge growth. But the rise falls short of the £100,000 threshold that many small businesses had hoped the Chancellor would stretch to. “The decision to make full expensing permanent, representing a £10 billion tax cut for businesses looking to invest in equipment and machinery, was warmly received in last November’s Autumn Statement. So, new intention to extend full expensing to leased assets will be similarly welcomed by garages and workshops wanting to invest in new EV or ADAS servicing equipment.” Kevan added: “However, it was a budget that felt more in favour of ICE then EV, with fuel duty frozen and no new incentives to help motorists to switch to plug-ins. Despite this, the transition to electric vehicles continues to be the direction of travel for the industry. It will still be prudent for the industry to invest in the skills and equipment to service electric vehicles sooner rather than later to ensure their long-term success.”
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