The automotive trade has reacted to the measures which had been introduced in Chancellor Rachel Reeves’ Spring assertion yesterday.
The speech talked about the Planning and Infrastructure Invoice, which is a chance to deal with planning obstacles for electrical automobile charging infrastructure, however discontent is the tone within the trade as key points impacting automotive weren’t addressed.
Sue Robinson, CEO of the Nationwide Franchised Sellers Affiliation (NFDA), mentioned: “Today the Chancellor’s statement provided no update on some of the issues affecting the automotive retail industry.”
“NFDA remains of the view that raising employer NICs by 1.2 per cent to 15 per cent will significantly increase the cost of running a franchised dealership, particularly at a time when businesses are already facing pressure from rising energy costs and adapting to the shift towards electric vehicles.”
“Furthermore, the Spring Statement did not provide an update on the electrification of the UK car parc.”
The long run tax on costly EVs was additionally not addressed within the speech.
Iain Reid, head of editorial at Carwow, mentioned: “With public funds beneath strain, it’s clear the Authorities wasn’t able to supply any big-ticket incentives for motorists – particularly relating to shopping for extra electrical automobiles.
“There’s a easy transfer that might have helped get extra drivers into EVs: scrap the looming ‘expensive car supplement’ for electrical fashions. From 1 April, EVs with a listing value over £40,000 will likely be hit with an additional £410 a 12 months in street tax.
“This undermines the in-life savings that make EVs attractive and risks pushing drivers towards cheaper petrol models instead – making it even harder for the Government to achieve its own net-zero ambitions.”
Vicky Edmonds, CEO of EVA England, echoed these sentiments however argued for a rise of the costly automotive tax threshold versus scrapping it altogether.
She added: “Increasing the expensive car tax threshold for EVs should have been a priority while they remain on average more expensive than their petrol and diesel counterparts.”
