NFDA RESPONDS TO GOVERNMENT’S SPENDING REVIEW ANNOUNCEMENT

Following the Government’s announcement of its multi-year Spending Review, Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), commented:

“The Government’s Spending Review sets a crucial tone for the coming years and while it is welcome to see investment directed toward infrastructure, skills and EVs, Chancellor Rachel Reeves MP’s review, similar to the Spring Statement, has left some issues in the dark.

Firstly, the £15.6 billion transport package and renewed focus on regional connectivity are positive signals for dealer networks and supply chains across the North and Midlands. Efficient transport infrastructure supports business mobility/customer access and ultimately boosts confidence across local economies where many of our members operate.

The Government have briefly addressed electric vehicles (EVs) and decarbonisation. As part of the Government’s Clean Energy mission, the settlement commits £2.6 billion over Phase 2 to decarbonise transport, including:

• £1.4 billion to support continued uptake of electric vehicles, including vans and heavy goods vehicles (HGVs)
• £400 million for the further rollout of charging infrastructure, building on the almost 80,000 public charging devices already available
• Extending the Advanced Fuels Fund to 2029-30 to support the production of sustainable aviation fuel
• Investing £616 million to build and maintain walking and cycling infrastructure

NFDA acknowledges this investment for EVs, however the Government needs to clarify how this £1.4 billion will be spent and we still remain of the view that the Government needs to be incentivising consumers to purchase a new vehicle by improving charging infrastructure as well as addressing EV tax hikes.

It is encouraging to see the Chancellor address apprenticeships in today’s Spending Review, bringing much needed funding in the form of £1.2 billion for young people to enter training and upskilling programmes. This is a positive action to address the rising unemployment according to the Office for National Statistics (ONS) and 16,000 job vacancies in the automotive sector.

NFDA will continue to lobby the Government to ensure our members’ concerns are heard in forthcoming policy developments.”