Budget reaction: ‘We’re an aftermarket, not an afterthought’

27 November 2025  

Mark Field, chief executive of IAAF, has slammed yesterday’s budget for doing nothing to support the thousands of businesses that deliver affordable mobility to the millions of motorists every day. 

Chancellor of the exchequer Rachel Reeves (pictured) announced a range of measures to “update the tax system for a modern-day economy”, including a new per-mile levy for electric and plug-in hybrid cars from 2028.

But Field said: “We’re an aftermarket, not an afterthought and short-term thinking by successive governments has now meant £4 billion of grants to sell EVs that not everybody wants or can afford. Even more remarkable is this government’s plan to charge the ones that do, with a pay-per-mile tax on EVs. This will further reduce EV adoption.”

Instead of “dumbing down EV adoption by subsidising” the price of cars,  Field said the UK “should be supporting businesses and programmes that deliver on the sensible notion that a technology neutral approach to future mobility is the best way to ensure effective consumer choice and affordable motoring”. 

Apprenticeships

Nick Connor, CEO of the IMI, said the institute was delighted that its pre-budget call for action to improve access to apprenticeships had been partly addressed in the budget.

“With the introduction of free apprenticeships for under 25s in SMEs, this is a significant step for a sector where 96,000 small and medium sized businesses play such a critical role,” Connor said.

He said the IMI was also encouraged by the announcement made before the budget that the minimum apprenticeship pay will rise to £8 per hour from April next year. However, Connor said: “When will the government recognise the critical role of the aftermarket in giving businesses and consumers the confidence to switch to EVs?”

Mike Hawes, SMMT chief executive, said the government had recognised the automotive industry as a pillar of national strategic importance, backing it with an industrial strategy and additional £1.5 billion to drive competitiveness and investment.

“Deferring the end of employee car ownership schemes into the next parliament, meanwhile, will be welcomed by workers across the sector.”

‘Wrong measure’

Hawes welcomed changes to the VED expensive car supplement and an additional £1.3 billion funding for the Electric Car Grant and support for charging infrastructure. But he said this would not offset the impact of introducing the EV excise duty.

“This was the wrong measure at the wrong time,” he said.

Sue Robinson, chief executive of the National Franchised Dealers Association, said the new EV pay-per-mile tax, discouraged EV sales.

“Introducing additional costs for EV drivers risks undermining consumer confidence at a critical moment for the EV market. The Office for Budget Responsibility estimate that this tax will result in £440,000 fewer EV sales, harming franchised dealer’s ability to sell and reach ZEV mandate targets.”