10 AFTERMARKET MAY 2023 BUSINESS www.aftermarketonline.net The chaotic events surrounding the abortive mini-Budget of September 2022, and the rapid change-in-direction that led to Rishi Sunak becoming Prime Minister found their equal and opposite reaction in Jeremy Hunt’s sedate Spring Budget. Points relevant to the automotive sector included the extension of the 5 pence fuel duty reduction, with overall fuel duty frozen for 12 months, while an additional £200m per years has been added onto the £500 million allocated to deal with potholes in UK roads. On the overall business front, the scheduled Corporation Tax increase to 25%, up from 19% went ahead. Looking at investment, businesses will be able to write off the cost of investment in equipment to reduce taxable profits from until 31 March 2026. This replaces the SuperDeduction. Tax relief worth £600 million on energy efficiency measures, intended to help reduce energy usage by 15% was also announced. Looking at the overall economy, it was announced that the Office for Budget Responsibility expects that the UK will avoid recession in 2023, despite the economy being expected to shrink by 0.2%. For next year, 1.8% growth is predicted, which will rise to 2.5% in 2025 and 2.1% in 2026. Inflation should also be down to 2.9% by the end of 2023. In the last three months of 2022 it was 10.7%. Industrial strategy SMMT Chief Executive Mike Hawes said: “We face fierce international competition so it was pleasing to hear the Chancellor directly reference industrial strategy and measures to attract investment. Tax breaks for capital expenditure, which the industry has long called for, extensions to climate change agreements plus action to alleviate the high cost of living and encourage more people into work are all muchneeded. Investment zones which focus on advanced manufacturing, of SPRING BUDGET 2023: AUTOMOTIVE SECTOR REACTS The Spring Budget offered few surprises for the motor industry, and presented a number of missed opportunities around EVs
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