“The upcoming Autumn Budget is a vital opportunity to articulate a clear strategy for the UK automotive retail sector. Employing around 600,000 people, 78% of the UK’s automotive workforce, and generating close to £200 billion in turnover, our sector is fundamental to the economy,” said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA). In October, NFDA submitted its Budget proposal to the Chancellor, Rachel Reeves MP, for consideration. The submission highlighted several pressing issues affecting the automotive industry, some of which including: Tax changes to increase electric vehicle adoption Extend ICE vehicles deadline in ZEV mandate to align with European manufacturing output Freeze fuel duty Reform inheritance tax Remove apprenticeship levy clawback Improve charging infrastructure Remove business rates stealth tax Our full Budget proposal can be found here Electric Vehicles To ensure a successful transition to electric vehicles, the NFDA stressed the need for greater investment in the UK’s charging network, particularly in rural regions. While the Government has set a target of installing 300,000 public charge points by 2030, we are calling for an annual delivery mandate to guarantee steady progress and nationwide coverage. The association also warns that applying new taxes to public chargers could undermine EV adoption. Vehicle Exercise Duty (VED) The expensive car supplement in the VED road fund license is currently a big disincentive to buying a new electric vehicle. We would like to see the expensive car supplement scrapped or at least expanded to £50,000 to increase the demand in new EVs and to drive the market forward. Employee Car Ownership Scheme (ECOS) Last week, NFDA wrote to the Treasury urging the Government to reconsider its plans to scrap the ECOS scheme, warning that the proposed changes will have damaging consequences for the automotive sector and its employees. Removing ECOS risks reducing the attractiveness of employment within the industry and could lead to a fall in the number of new cars being registered, damaging the electrification process. Inheritance Tax With increasing private equity and overseas investment in dealership groups, changes to business property relief could further disincentivise family ownership. We note that long-standing family-run dealerships are already taking steps to mitigate future inheritance tax liabilities, which in turn limits growth, investment and local economic resilience. Sue Robinson concluded: “NFDA will closely monitor these issues next Wednesday and hopes to see the upcoming Autumn Budget provide the clarity and support our sector needs. Post Budget, we will continue to engage with policymakers at our parliamentary dinner in January.”