8 AFTERMARKET APRIL 2024 BIG ISSUE www.aftermarketonline.net On Wednesday 6 March, Chancellor of the Exchequer Jeremy Hunt delivered his Spring Budget. With it sure to be the final full Budget before a General Election, it was expected to offer much for the wider voting public. For motorists, the headline measure was the fact that the 5 pence per litre fuel duty cut has been maintained and is set to continue for a further 12 months until March 2025. PRA Chief Executive Gordon Balmer said: “I am pleased that the Chancellor has listened to us and extended the fuel duty freeze and the 5 pence per litre cut. This move is poised to ease the financial burden on motorists when they refuel and is likely to be wellreceived.” For businesses, more significant was the news that full expensing is being extended to leased assets, with the VAT threshold rising from £85,000 to £90,000. However, the automotive sector was looking for more from this setpiece Budget. This included hoped-for changes to the Apprenticeship Levy, proposed by the IGA in its Budget Submission. These did not come to pass. There had also been calls across the industry for wider support for the transition to EVs, taking in VAT and VED changes. This too did not transpire. Key concerns IGA Chief Executive Stuart James was disappointed by the Budget: “The independent garage sector had hoped for strategic support from the Government in this critical year of change. Unfortunately, the Budget missed several opportunities to address key concerns. Whilst we appreciate that this budget announcement has been heavily weighted to support consumers ahead of the impending general election, it is disappointing that very little has been mentioned regarding supporting SME’s, the backbone of the UK economy.” On changes to the VAT threshold and full expensing on leasing, Stuart said: “While we appreciate certain fiscal adjustments, the lack of business rates reform is disappointing, particularly given its adverse effects on independent repairers." On the fuel duty freeze, he said: "Extending the fuel duty cut provides relief to consumers amidst global instability. However, more comprehensive support is needed to navigate ongoing challenges." Looking towards what was not mentioned, Stuart started with hopedfor reform of the Apprenticeship Levy, something on which the IGA had made a submission on some weeks prior to the budget. He said: "The oversight of apprenticeship reform exacerbates the skills shortage in the independent repair sector. Simplifying the Apprenticeship Levy is crucial for recruitment and skills development. This is an area for concern, and following recent communication between the IGA and The Rt Hon Robert Halfon, Minister for Skills, Apprenticeships and Higher Education, we had expected this to be addressed in the Spring Budget." On the failure to offer private EV price incentives, Stuart observed: "The absence of incentives for private EV buyers is concerning, as the UK falls behind other European markets.” He added: "The Spring Budget missed opportunities to support the SME sector as a whole and address SPRING BUDGET 2024 “MISSED OPPORTUNITY” SAYS SECTOR The Budget from Chancellor Jeremy Hunt disappointed many in the automotive sector with a number of hoped-for measures not enacted
RkJQdWJsaXNoZXIy MjQ0NzM=