The NBRA has given mixed reviews to the government’s Autumn Statement, welcoming general measures to boost industry but highlighting a lack of support directly targeting the automotive repair sector.
Executive director Martin Rowley said, “In the aftermath of the Autumn Statement, NBRA acknowledges certain government initiatives supporting our members. However, we underscore the ongoing need for precise support measures aimed at sustaining the automotive repair sector amidst economic uncertainties.”
In the Statement, Chancellor Jeremy Hunt confirmed that Corporation Tax rate will remain at 25% while the small profits rate remains at 19%. Further, a business rates support package has been introduced worth £4.3bn over the next five years.
Martin said, “NBRA welcomes this announcement as small businesses which are at the heart of the UKs economy, need access to capital to grow and invest. This move will significantly assist our members who have already been burdened by financial crises in the past years.”
However, while a further £50m will fund a new two-year apprenticeship pilot, there was no mention of reform to the failing Apprenticeship Levy.
Martin said, “We highlight the urgent need for comprehensive action in response to the industry’s unanimous plea for the reform or elimination of the Apprenticeship Levy. The absence of a direct response in the Autumn Statement is a missed opportunity, jeopardising the development of a skilled workforce crucial to the repair sector. Currently, the industry faces a significant skills gap, creating a demand for fresh talent and new expertise.”
He also called for tailored measures to address the skills gap in the automotive sector as part of the government’s Back to Work plan, and suggested that rising the National Living Wage could put further pressure on businesses within automotive repair.
He concluded, “As the Autumn Statement unfolds, we extend a call for collaborative efforts between the government and the automotive repair sector. We urgently appeal for the government’s support, providing essential relief for body shop employees navigating the escalating financial pressures during this challenging era of the cost-of-living crisis. Immediate action on apprenticeship reform, strategic support for workforce development, and targeted measures to enhance industry competitiveness are not mere suggestions but indispensable steps for securing the future of vehicle repairers. The NBRA remains committed in our engagement with the government to ensure sustained support for body shops and vehicle repairers.”
