Spring statement ‘fails to support garages’, says IGA

27 March 2025  

The spring statement unveiled by chancellor Rachel Reeves fails to provide the support that independent garages desperately need, industry leaders said today.

Reeves announced plans yesterday to cut billions of pounds of proposed spending, amid gloomy economic prospects.

Independent Garage Association chief executive Stuart James acknowledged government efforts to tackle the country’s finances, but said:

“While there are positive elements, such as the focus on infrastructure, the lack of targeted relief for small businesses and continued uncertainty around employment regulations make it difficult for independent garages to plan for the future.

‘The IGA will examine the statement in more detail to understand its full implications and urge the government to provide greater clarity and targeted support to ensure the sustainability of the independent garage sector, which plays a crucial role in keeping the UK safe and mobile.”

‘Tight margins’

The forthcoming increase in the National Living Wage to £12.21 per hour from April 1 and the rise in employer National Insurance Contributions to 15% from April 6 remain key financial pressures for the independent garage sector, many of which are already operating on tight margins, the IGA said.

Proposed changes could introduce additional employment administration burdens and costs for independent garages. Without clear guidance or support, independent garage owners will find it difficult to invest in the future and grow their business.

Meanwhile, the Car Wash Association welcomed Reeves’ announcement of a crackdown on unpaid fines owed by illegal hand car wash operations.

Gordon Balmer, executive director, said illegal car washes continue to flout regulations and ignore fines with impunity.

“HMRC has let this go totally unenforced, leaving millions of pounds uncollected and allowing criminals to profit at the expense of law-abiding, taxpaying businesses.”

However, Balmer said it remained to be seen if any action is actually taken.