The Motor Ombudsman’s latest annual survey of independent garages and franchise dealer workshops found rising operational costs, taxes and bills are set to pose the biggest obstacle for 92% of vehicle repairers during 2026.
This is a slight two-percentage point increase versus the figure for the same study conducted ahead of 2025.
Bill Fennell, Chief Ombudsman and MD of The Motor Ombudsman, said: “Navigating this complex landscape, and a challenging economic backdrop to match, will require businesses to be adaptable, innovate and stand out from the crowd in what is a very competitive sector.”
Coupled with the recent rise in National Insurance employer contributions, vehicle repairers are set to be impacted by the arrival of added expense this year, such as higher minimum wages, a revaluation of business rates, and greater standing charges for energy use.
Almost seven in ten businesses have said that fewer consumers will be both unable to afford routine maintenance, such as servicing (69%), and put off vital work to their cars in the coming months to save money (68%).
Just over two-thirds of businesses questioned (68%) stated that they will face rising parts prices this year to fix vehicles.
Although inflation is set to ease throughout 2026 according to forecasts, around 55% stated that not passing on higher costs to consumers when handing over a bill, posed an added obstacle for their business, when it comes to both retaining existing loyal customers and attracting new ones.
The persisting shortage of vehicle technicians is reflected in the results of The Motor Ombudsman poll.
Nearly five in ten of the garages and workshops questioned (45%) said that recruitment would remain difficult through 2026.
There are some encouraging takeaways from the research.
For example, 29% of respondents intend to upgrade their premises to create an improved service and repair experience for customers, 21% plan to invest in EV-specific learning initiatives to upskill their workforce, and attend training courses and webinars to further drive-up operational standards.
