December/January 2022

I n his second Budget of the year, Chancellor Rishi Sunak announced a number of measures that will affect businesses in the aftermarket. Looking broadly, fuel duty was frozen for another year, while road infrastructure is set to receive a £21 billion investment. On the training front, overall skills spending will see a £3.8 billion rise, with apprenticeship funding receiving a £2.7 billion increase across 2024-2025. Looking at wages and taxation there, National Insurance will increase by 1.25% from April 2022, while the National Minimum Wage will go up to £9.50 per hour for those over 23. On the Business Rate front, next year’s Multiplier has been cancelled, and the £1 million Annual Investment Allowance will now end in March 2023. This had been due to end this December. Longer term, the whole system will be evaluated every three years from now on. There is also a one-year 50% discount, up to £110,000, on business rates for retail, leisure and hospitality businesses, as well as an improvement relief for investment in green tech. Eligibility Where exactly the 50% Business Rates discount applies is still unclear however, and the IGA has urged the Chancellor to clarify whether independent garages will be eligible. IGA Chief Executive Stuart James observed: “Last year, independent garages struggled to claim business rate relief despite being retail outlets, as they were not specifically included on the list of eligible businesses for local authorities. This caused garages much confusion and distress, and left them with little support.Garage businesses need financial aid, as they are still recouping from financial losses incurred throughout the COVID-19 lockdowns, and are experiencing reduced incomes due to ongoing fluctuations in demand for MOTs caused by last year’s six-month MOT extension.” He added: “It is vital that garages can claim this new discount to help them to stay afloat and retain their staff, so they can continue their vital work keeping vehicles safe and roadworthy. We urge the Chancellor to ensure that independent garages are specifically included on the list of businesses eligible for the new business rates discount.” 22 AFTERMARKET DECEMBER/JANUARY 2022 BUSINESS www.aftermarketonline.net AUTUMN BUDGET 2021: THE SECTOR REACTS The automotive sector had a mixed reaction to the Autumn Budget