November 2020

NOVEMBER 2020 AFTERMARKET 51 www.aftermarketonline.net to lockdown, and garages were largely unaffected, although the requirement for retail staff to wear masks was likely to apply to staff where in garages where they are not working remotely. Laying out the series of measures in Parliament that were largely aimed at social settings, Prime Minister Boris Johnson confirmed that pubs and other hospitality venues faced 10pm curfews nationwide from Thursday 24 September and that masks would be needed at all times unless seated at a table. In a reversal of recent policies, workers were to be be encouraged to operate from home again where it was practical. Schools and universities were set to stay open however. Masks were also to be a requirement in more environments and contexts and, businesses who break rules would be fined. There would be tougher enforcement against people who do not comply. He warned that restrictions could stay in place for six months. There had been suggestions that the government could enact a two-week mini-lockdown, dubbed a circuit breaker, but they held off on this. The Prime Minister commented: "We will not listen to those who say let the virus rip, nor to those who urge a permanent lockdown. We are taking decisive and appropriate steps to balance saving lives and protecting jobs and livelihoods." 24 September: Post- furlough business and job support unveiled by Chancellor It was announced that the furlough would be replaced by the Jobs Support Scheme. From 1 November, employees will be able to work part time and receive up to 77% of their full-time salaries, part-subsidised by government, for six months. At the same time, businesses were given more time to repay Coronavirus loans. Businesses that take advantage of the Job Support Scheme will still be able to get the £1,000 Jobs Retention Bonus, which pays out if a business keeps a member of staff, who was furloughed, on until 31 January 2021. 29 September: Safe Harbour Scheme seeks to secure supply chain The SMMT launched a scheme that allows multiple parts companies to come together to support critical suppliers without falling foul of anti- competition rules, in a first for the UK sector, The SMMT’s Safe Harbour Scheme is designed to prevent insolvencies and help save jobs across the UK automotive industry, including its supply chain. It seeks to provide a legally compliant structure through which collaborative solutions can be found to support companies at risk and the entire production supply chain safeguarded. SMMT Chief Executive Mike Hawes said: “The Safe Harbour Scheme has been created to help any suppliers in trouble. It should provide valuable breathing space as the sector restarts and business and consumer confidence recovers. The Safe Harbour Scheme and framework was developed by SMMT with support from major manufacturers, the Automotive Council and Department for Business, Energy and Industrial Strategy (BEIS), alongside ITP partners Deloitte, Grant Thornton, KPMG and RSM. The scheme operates within competition compliance requirements set out in UK and EU regulations. It is available to any company operating in the UK automotive sector. Companies interested in taking part in Safe Harbour can find out more and enquire in strict confidence at: www.smmt.co.uk/member- services/safe-harbour/ 1 October: Furlough – The 20% Solution Garages that had taken advantage of the Coronavirus Job Retention Scheme needed to pay 20% of wages so employees still received 80% of their pay under furlough. As part of a progressive withdrawal of the furlough, the government’s salary contribution dropped from 70% to 60%. The government was paying up to a total of £1,875 per worker, with employers topping up the national insurance, pension contributions and 20% of wages to make sure staff still get 80%. Since Saturday 1 August, businesses that had put staff on furlough have been required to pay National Insurance and pension contributions for their workers. At that point, the government was still paying 80% of wages. This was dropped to 70% on Tuesday 1 September. The furlough will end on Saturday 31 October. It will then be replaced by the Job Support Scheme from Sunday 1 November. Through this, eligible staff will be able to receive up to 77% of their salaries for six months. The Scheme is designed to offer firms the option of keeping employees on the payroll on shorter hours, instead of making them redundant. 5 October: New car sales – Lowest September since 1999 Ongoing uncertainty resulting from the pandemic helped push the new car market down 4.4% in September, according to figures published by the SMMT, in what was the weakest September since 1999. 328,041 new cars were sold during the month, which also followed low sales in September 2018 and 2019, when the introduction of the WLTP emissions testing regime delayed vehicle certification and caused supply problems across Europe. September 2020 was also 15.8% lower than the 10-year average of around 390,000 units for the month. Private registrations fell by 1.1% over the month. Demand from business was also reduced, with around 10,000 fewer cars joining larger fleets, representing a 5.8% decline. On the other hand, demand for battery electric vehicles (BEVs) increased by 184.3% compared with last September, with the month accounting for a third of all 2020’s BEV registrations. SMMT Chief Executive Mike Hawes said: “During a torrid year, the automotive industry has demonstrated incredible resilience, but this is not a recovery. Unless the pandemic is controlled and economy- wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed.” James Fairclough, CEO of AA Cars, observed: “Drivers’ concerns about the stability of their finances could also be pegging back demand for new cars and prompting many to look for better value on the second hand market instead.” Sue Robinson, NFDA Chief Executive, added: “With the UK’s exit from the EU approaching, we urge the government to reach a deal which protects the supply of vehicles and parts to the UK.” www.aftermarketonline.net

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