Sue Robinson, Director of the National Franchised Dealers Association (NFDA) which represents franchised car and commercial vehicle retailers in the UK, comments on the measures announced in today’s Budget by the Chancellor Rishi Sunak.
Consumer incentives and plug-in grant
The Government has announced it will provide £403 million for the Plug-in Car Grant, extending it to 2022-23. The government will also provide £129.5 million to extend the Plug-in Grants for vans, taxis and motorcycles to 2022-23.
“NFDA will be liaising with the Government to understand the details of the incentives that will be provided to motorists for the purchase of ultra-low emission vehicles. We will keep our members informed”.
Vehicle Excise Duty (VED)
The government is publishing a call for evidence which will include how VED can be used to support the take-up of zero and ultra-low emission vehicles and reduce overall emissions from road vehicles
“Following our lobbying efforts, we are pleased to see that the Government will publish a call for evidence on VED. NFDA will continue to liaise with the Government to outline franchised dealers’ priorities on the issue. Additionally, we are pleased to see that zero emission cars will be exempted from the Vehicle Excise Duty VED ‘expensive car supplement’”.
Company car tax (CCT)
As set out in July 2019, the Government will reduce most CCT rates by 2% in 2020-21 for cars first registered from 6 April 2020. Rates will return to planned levels over the following two years, increasing by 1% in 2021-22 and 1% in 2022-23. Rates will then be frozen until 2024-25.
“Further clarity on the company car tax is positive news for businesses”.
The Government has announced an extra £900 million investment for R&D, space, nuclear fusion and electric vehicles.
The Budget has announced investment in electric vehicle charging infrastructure, ‘which will ensure that drivers are never more than 30 miles from a rapid charging station’. This includes £532 million for consumer incentives for ultra-low emission vehicles.
“It is extremely encouraging to see that more than £500 million will be invested to support the rollout of new rapid charging hubs. Access to charging infrastructure is one of the key barriers preventing consumers from buying an electric car and, as a result, we welcome further investments which will continue to encourage motorists to purchase low and zero emission vehicles”.
“It is positive that fuel duty will remain frozen for another twelve months. This decision will benefit motorists and the whole automotive industry throughout a period of significant changes and financial pressure”.
“It is positive that a total of £27 billion will be invested to improve the condition of 4,000 miles of roads in the UK. An efficient transport infrastructure is key to a strong economy and the investment is welcome news”.
Investments in colleges
1.6 billion will be invested to improve FE college building and facilities.
The Chancellor has announced the Government will abolish small business rates alongside a number of other measures that will support small businesses over the next 12 months.
National Living Wage
The National Living Wage will be increased from £8,632 to £9,500.
“Today’s decision by the Bank of England to cut interest rates to 0.25% is a welcome move by franchised automotive retailers. Rates are now exceptionally low and likely to stimulate consumer spending during challenging times”.
“Overall, it positive that the Chancellor has announced a number of measures that will support businesses through a period of external challenges including the coronavirus outbreak”.
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.