The Independent Garage Association Responds to the Chancellor’s Spring Statement

Stuart James, Chief Executive of the Independent Garage Association (IGA), comments on the Spring Statement delivered by Chancellor Rachel Reeves, noting any impact on the independent garage sector across the UK.

While the IGA acknowledges the government’s attempt to align the country’s finances, the IGA are disappointed that no concessions have been made since the Autumn Budget to alleviate financial pressures on small businesses, with any investment focused heavily on construction, and little consideration for the challenges faced by independent garages.

Whilst the tax burden on individuals remains unaffected, the measures introduced could still stifle growth and put additional strain on small businesses. The forthcoming increase in the National Living Wage to £12.21 per hour from 1 April 2025 and the rise in employer National Insurance Contributions to 15% from 6 April 2025 remain key financial pressures for the independent garage sector, many of which are already operating on tight margins.

Given that business confidence is currently at an extremely low level, the IGA is disappointed that no clarity was given on the potential changes to the Employment Rights Bill, which remains a significant concern for small businesses. 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.

Stuart James, CEO said: ‘The Spring Statement fails to provide the support that independent garages desperately need. 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.’

Without clear support or relief measures, businesses will struggle to absorb these additional costs without passing them onto customers.

James concludes: ‘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.’