12 AFTERMARKET MAY 2023 BUSINESS www.aftermarketonline.net which automotive is an exemplar, R&D and technology are also positive steps. “There is little, however, that enables the UK to compete with the massive packages of support to power a green transition that are available elsewhere. Indeed, the announced fuel duty freeze contrasts with an absence of measures to boost uptake of zero emission vehicles, such as reducing VAT on public charging. We, therefore, look forward to additional policy announcements that support advanced manufacturing sectors, as the right conditions will enable the investment that drives growth across the country.” Pivotal moment NFDA CEO Sue Robinson observed: “It's positive to see that government has addressed some key areas which impact the automotive sector, including maintaining the fuel duty freeze and the replacement of the super deduction tax with a new investment allowance scheme. “However, it is clear that government still does not entirely understand the significance of incentivising motorists’ transition to electric and investing into charging infrastructure. NFDA urges government to place more emphasis on financing and levelling up the electric vehicle landscape, matching the efforts and investments franchised dealers have made, and continue to make, if they want to meet their ambitious 2030 deadlines and 2050 net-zero targets.” On the Corporation Tax rise, she said: “Ultimately, we are disappointed that the Chancellor has not reversed the corporation tax rise to 25%. Keeping corporation tax at 19% would have helped franchised dealers to maintain the high levels of investment required to support the electrification of their vehicle stock, another example of franchised dealers supporting government’s net-zero targets. This transition has forced dealers into levels of investment which has not been seen in the industry in decades. Sue continued: “NFDA cautiously welcomes the replacement of the super-deduction with a new investment allowance scheme. This involves a 100% write-off of capital expenditure expenses immediately from profits. In some circumstances, the deduction may facilitate greater investment by dealerships, but this does not make up for the disincentive to invest as a result of the rise in corporation tax.” Moving onto the skills shortage, Sue said: “We have continuously called on the government to rethink the apprenticeship levy scheme and it is a disappointment that nothing has been announced on this, or for apprenticeships for young people in general. Businesses need help to source talent and promote employment into such a vital sector for the UK economy.” It was what was not said that was the biggest cause for concern though: “We are extremely disappointed that not a single mention of electric vehicles or charging infrastructure was mentioned in today’s budget announcement. If the UK government’s goal is to stop the sale of new petrol and diesel cars and have 300,000 charge points in place as a minimum by 2030, there needs to be much more significant investment – and this has to be incentivised by the Chancellor in future Budgets. "The recent announcement to introduce Vehicle Exercises Duty (VED) for electric vehicles in 2025 has reduced the appeal of buying a new electric car as motorists will no longer benefit from a tax-free purchase that differentiated it from its ICE counterpart. This sent the wrong message at the wrong time and the Chancellor still has not established a policy on electric vehicles that sends the right message. This, NFDA believes, was a missed opportunity to create a comprehensive road tax scheme. “Going forward, government support will be critical to the success of the electrification of the vehicle parc in the UK. Government’s neglect to support the less affluent from purchasing an EV, a product which remains a price premium and a significant barrier to adoption, risks undermining the movement and their net-zero targets and destabilising the EV market.” Bright point Paul Hollick, Chair at the Association of Fleet Professionals concurred: “This
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