IGA responds to Autumn Budget 2024
IGA 05/11/2024
“We acknowledge the Government’s Budget initiatives aimed at fostering growth for small businesses, including independent garages. However, amidst some positive steps, the IGA is urging the government to address critical areas of concern that may hamper the automotive sector’s ability to thrive in the coming years.” said Stuart James, Chief Executive of the Independent Garage Association (IGA).
Business Rates
“The IGA is pleased to see the small business rate freeze maintained for now, which helps our members with the confidence to invest and innovate while delivering essential services to motorists across the UK.”
Apprenticeship Levy
“The government’s commitment to reforming the Apprenticeship Levy is a promising step toward alleviating the skills shortage facing the automotive sector. We look forward to seeing how the reformed levy will be shaped to meet the needs of employers, providers, and learners, providing value for money and helping to bring much-needed talent into our sector.”
Minimum wage
“With the upcoming increase in the National Minimum Wage to £12.21 and a rise in apprentice wages, we are concerned that these rising costs may make it difficult for independent garages to justify hiring apprentices. While we recognise the intention to make apprenticeships a more attractive pathway into skilled employment, this significant wage increase could place a strain on businesses operating on tight margins.”
National Insurance
“The increase in National Insurance contributions (NICs) from 13.8% to 15%, coupled with a lowered payment threshold, poses a significant financial burden for independent garages. This rise restricts their capacity to hire and upskill employees, potentially affecting investment, growth, and recruitment. We urge the government to reconsider these increases, as they may ultimately jeopardize the long-term stability of this essential sector.”
Fuel Duty
“Fuel costs are a significant expense for our members and their customers. Freezing fuel duty during these challenging economic times helps to alleviate pressure on consumers and allows independent garages to keep service costs manageable. We welcome this supportive measure as it benefits both small businesses and the public.”
Corporation Tax
“The IGA welcomes the government’s commitment to maintaining Corporation Tax at 19% for small businesses, providing independent garages with the stability needed to invest in their operations and workforce, both crucial for adapting to rapid technological changes in our sector.”
Capital Gains and Inheritance Tax Change
“The IGA is concerned about changes to Capital Gains Tax, Inheritance Tax, and the introduction of Pension Inheritance Taxation, as these measures are likely to negatively impact family-owned and legacy businesses. Such changes could hinder investment and growth, placing additional strain on businesses that are already navigating challenging economic conditions.”
Stuart James concluded “The IGA remains committed to advocating for independent garages and will continue to engage with government representatives to ensure that the sector’s needs are addressed. While we appreciate certain supportive measures, it is essential for the government to consider the cumulative financial pressures faced by our sector. Continued support will enable small businesses to navigate economic challenges and invest in sustainable growth.”
About the RMI
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.