December 2020

DECEMBER/JANUARY 2021 AFTERMARKET 51 www.aftermarketonline.net commuting habits may be leading more people to purchase a car so they can avoid public transport.” James added: “With many people worried about their finances, it is more important than ever that drivers take care when buying a used car. We recommend buying only from a reputable dealer, and having a car independently inspected to ensure there are no major problems which could prove costly down the line.” 22 October: Job Support Scheme recalculated prior to roll-out The Job Support Scheme, which was set to succeed the Furlough, was amended before it was unrolled, and then subsequently delayed. Responding to concerns about the impact on jobs if the scheme were to be enacted as originally designed, Chancellor of the Exchequer Rishi Sunak announced that thanks to revisions, employers are set to be asked to pay less, and employees will be required to work less hours before qualifying. Under the re-organised scheme, businesses will contribute a 20% minimum portion of usual hours worked, as well as 5% of usual hours not worked. A further 62% of un- worked hours will be paid by government, effectively doubling the maximum to £1,541.75 per month. 31 October: New lockdown announced, but garages in England remain open Boris Johnson announced a month- long lockdown for England beginning on Thursday 5 November and set to end on Wednesday 2 December. Hospitality venues, gyms, hair and beauty outlets and non-essential shops were among the many businesses required to close. However, garages were among the businesses that were able to continue to operate, along with petrol stations, newsagents, undertakers, storage and distribution centres, bicycle shops and many others. The furlough scheme was also extended until 2 December as a result. 2 November: No new MOT exemption, garages reassured With the new lockdown for England looming, garages were reassured about the ongoing status of the MOT, with a new exemption off the table according to DVSA. Commenting on the situation, GEA Chief Executive Julian Woods said: “The DVSA have advised that they do not intend at this time to exempt any MOTs or give any date extensions to current due dates, they will also expect all MOT equipment to be maintained and calibrated as per normal operation processes.” The IGA also backed the decision not to bring in a further MOT exemption. “We fully support the government’s decision to allow garages to remain open as normal, and not to enforce another MOT exemption,” said IGA Chief Executive Stuart James. He added: “Garages are still busy catching up with the backlog of MOTs that the exemption earlier this year. A second exemption would only cause confusion among consumers and put law-abiding vehicle owners at risk of significant fines by leaving cars unchecked. 5 November: Firebreak douses demand in Wales as overall car sales fell in October New car sales were down again in October, with registrations falling 1.6% year-on-year according to the latest figures published by the SMMT. There were 140,945 new registrations in October, making it the weakest since 2011 and 10.1% lower than the average recorded over the last decade. While the release of the figures coincided with the start of England’s month-long new lockdown, it was actually the pre-existing firebreak lockdown in Wales which has impacted on the figures. The geography-specific anti-Coronavirus measure started on 23 October and led to the 25.5% fewer registrations in the country by the end of the month. This accounted for more than half of the overall UK decline. According to the SMMT, the industry had been expecting to register about 1.66 million new cars in 2020. However, with the announcement of a second lockdown for England, which included the closure of vehicle showrooms, the market forecast has been downgraded by a further 100,000 units to 1.56 million. This equates to a total year-on-year decline of around 750,000 registrations and a £22.5 billion loss in turnover, with 2020 now likely to be the weakest year since 1982. Commenting on the figures, SMMT Chief Executive Mike Hawes said: “The entire industry now faces an even tougher end to the year as businesses desperately try to manage resources, stock, production and cashflow in the penultimate month before the inevitable upheaval of Brexit. Keeping showrooms open – some of the most COVID-secure retail environments around – would help cushion the blow but, more than ever, we need a tariff-free deal with the EU to provide some much-needed respite for an industry that is resilient but massively challenged.” 5 November: Furlough to stay until Spring 2021 Chancellor of the Exchequer Rishi Sunak announced that the Furlough was being extended until the end of March 2021, with support for the self- employed also beefed-up. The measure, designed to support businesses and workers through the Coronavirus pandemic, had been due to end on 31 October, but this was then extended until 2 December just days before the planned end-date, with the start-date for the Job Support Scheme, which was due to replace it, also correspondingly delayed. The Furlough will remain at 80% of usual wages, up to a maximum of £2,500 per month with a review due in January. In addition, those made redundant after 23 September were now able to be put back on the payroll, and onto Furlough. More support for the self-employed was also unveiled. A third grant will be made available via the Self- Employment Income Support Scheme (SEISS) and will also be increased. This latest instalment for November to January will work out at 80% of trading profits on average, with the maximum cap being £7,500. According to the Chancellor, he was looking "to give businesses security through the winter.” The entire automotive industry now faces an even tougher end to the year ” Follow us on facebook