The Institute of the Motor Industry (IMI) is calling for decisive fiscal action to recognise the critical role of the 724,000 people in automotive working outside the factory gates.
Apprenticeship and Levy reform; industrial and workforce investment; and investment in safety critical competence frameworks to protect workers and consumers, have been identified as high-impact priorities.
Nick Connor, CEO of the IMI, said: “For too long, government investment in automotive has stopped at the factory gates. The people who keep vehicles on the road and consumers safe have been overlooked – yet they are vital to our economy and our net zero ambitions.
“Our message to HM Treasury in our pre-budget submission is clear: reform the Apprenticeship Levy so that it drives growth, invest in the whole automotive workforce, and fund the safety-critical training that protects the public.
“These are not wish lists – they are evidence-based reforms grounded in data and feedback from employers across the UK.”
The IMI is calling for the Levy to be made genuinely flexible so automotive employers can invest in apprenticeships, modular upskilling, and safety-critical training.
This reform would unlock private investment, boost productivity, and reduce long-term fiscal pressure on government.
The IMI is also calling for the creation of an Automotive Workforce Transition Fund, ensuring Skills England and devolved budgets explicitly support the entire workforce beyond the factory gates.
This includes not only technical training but also leadership, digital, diagnostic, logistics, and customer-facing roles.
The IMI is urging HM Treasury to co-invest with employers in training aligned to the IMI TechSafe standard, the national benchmark for competence in electric, hydrogen, and ADAS technologies. Embedding TechSafe within skills funding, MOT reform, and procurement frameworks would ensure consistent national safety standards, protect consumers, and strengthen public confidence in new vehicle technologies.
The IMI is also urging government to reassess recent Employer Car Ownership Scheme (ECOS) tax changes.
