The cost of employing staff is set to rise for dealers with Chancellor John Healey announcing a 3.9% increase in the National Living Wage and National Minimum Wage.
The 5p-per-litre fuel duty cut is extended to July 2027 which avoids the planned increase in fuel costs for vehicle movements, collections, deliveries and courtesy cars.
On business Business rates the threshold for relief for eligible retail, hospitality and leisure businesses is to increase from £12,000 to £18,000 rateable value.
The Institute of the Motor Industry (IMI) has said today’s Autumn Budget was a missed opportunity to invest in the skilled, competent automotive workforce on which the government’s ambitions for growth, net zero and road safety ultimately depend.
“Every one of the government’s ambitions depends on having enough skilled, competent people to service, repair and maintain the vehicles on our roads,” said Nick Connor, CEO of the IMI.
“The sector is facing a perfect storm of workforce shortages, an ageing vehicle parc and rapid technological change, yet today’s Budget does nothing meaningful to address it. Without targeted investment, those pressures will hold back productivity, slow the adoption of new technologies and increase the risks for employers and motorists alike.
Ian Plummer, Chief Customer Officer of Autotrader, the UK’s largest automotive marketplace, said: “The Chancellor’s fuel duty freeze will be a relief for millions of motorists struggling with the cost of living.
“But the Government is still planning to hit electric vehicle drivers with pay per mile duty in 2028, putting up costs and putting a handbrake on their own efforts to get people buying electric cars.”
