Reeves urged to give auto sector budget boost

Ministers are being urged to use the upcoming autumn budget to chart a new course for car dealerships and boost the wider garage sector.

The National Franchised Dealers Association (NFDA) said on September 11 it was recommending three key areas for action by the new government, including boosting the automotive sector by driving vehicle electrification, creating a more equitable business rates framework and developing a clearer plan for future road taxation policy.

NFDA chief executive Sue Robinson said the budget, scheduled for October 30, would be the first under a Labour government since 2010, presenting a crucial opportunity for the new administration to define and articulate its vision for the future of the sector.

Robinson said: “NFDA continues to oppose increases in fuel duty rates, which will only impose higher costs for British motorists at a time of relative global instability, adding to the burden of rising insurance premiums — a concern also addressed in the submission.”

She said the budget would be a chance for the chancellor, Rachel Reeves (pictured), to demonstrate the government’s support for the sector.

“The right policies can ensure the industry prospers in the coming years during the transition to electric. Dealerships have already made significant investments in this shift.

“As we near the end of the year, a key focus will be the ZEV mandate, particularly as the EV market share remains below the 22% target set for this year,” Robinson said.

“By restimulating the private EV market through price incentives, establishing a more equitable business rates framework, developing a clearer plan for future road taxation policy and improving the UK motorist experience, the government can support the industry in achieving its far-reaching objectives.

“NFDA urges the chancellor to drive investment in the economy and address the needs of the automotive retail sector as a priority.”