Stimulating growth, electric vehicle infrastructure and addressing the skills shortage

Automotive sector associations react to Labour’s landslide victory in the UK General Election
Shortly after the UK Labour Party completed its landslide victory in the General Election, ushering in the first major change of the UK government’s leading party in 14 years, associations from the country’s automotive value chain detailed what challenges await the new prime minister Keir Starmer and his incoming administration over the next five years.
Having congratulated Starmer and the Labour Party, the Independent Garage Association (IGA) said it is “eager to discuss… the strategic actions and policies that will support and enhance our industry.” It identified “attracting new talent and addressing the unique challenges faced by the automotive industry in terms of apprenticeships,” as a key theme, reasoning that the “sustainability and growth of the independent garage sector depend on the ability of the sector to attract and retain skilled professionals.”
On new technological innovations in the sector, the IGA added that “it is essential for independent garages to adopt these technologies to meet the growing demand for the repair and maintenance of zero-emission vehicles. We are eager for initiatives that provide garages with the tools and knowledge needed to embrace these advancements, in line with the government’s zero-emission vehicle mandate, which became law on 3 January, 2024.”
Stuart James, IGA chief executive, noted the importance of tailored government policies to address the decline in automotive apprenticeship registrations. “The independent garage sector is vital to the economy, managing 70 per cent of the UK’s vehicle service and maintenance work. It is essential that apprenticeship policies take into account the unique challenges and opportunities this sector faces as automotive technology advances more rapidly than ever before.”
The association also committed to working collaboratively with the Labour government to address these critical issues.
NFDA reiterates ‘manifesto’
Sue Robinson (Photo: NFDA)
The National Franchised Dealers Association (NFDA) had proactively released a manifesto in the leadup to the 4 July vote outlining its seven requests from the next government. These were:
- Restimulating the private electric vehicle market
- Overhaul the flawed apprenticeship levy
- Mandated annual public chargepoint targets
- Outline a clear plan for future road pricing
- Remove unfair regulations for heavier, electric vans
- Increase HGV MOT capacity by introducing delegated testing
- Bring down business rates
“As the final few results of the General Election filter through and the overall political landscape becomes clearer, NFDA looks forward to working with the next Labour government to tackle the key challenges facing the automotive retail sector,” said Sue Robinson, chief executive of the NFDA.
Between 30 May and 14 June, the NFDA surveyed its members to gather dealer opinions on the most important issues their businesses would like to see tackled by the next government. The survey received 51 responses from various franchised dealership groups across the UK, collectively representing over 300 sites.
The top three current most important issues that dealerships note as affecting their business are:
- Slowing demand in EVs and meeting ZEV mandate targets (69 per cent ranked this as their first choice)
- Attracting and retaining quality staff/skills shortage (33 per cent ranked this as their second choice)
- Lack of charging infrastructure was also a prominent concern with 24 per cent ranking this as their second choice
The top three most important issues that dealerships want the next government to address are:
- restimulating the private electric vehicle market (41 per cent ranked this as their first choice)
- reforming business rates followed closely behind (32 per cent ranked this as their first choice)
- Increasing and improving electric vehicle charging infrastructure was the most frequently ranked second choice (27 per cent ranked as their second choice).
Robinson added “through NFDA’s manifesto and General Election survey, dealerships have clearly expressed their views, and it is crucial that their voices are heard.
“The automotive retail industry has highlighted critical issues including restimulating the private electric vehicle market, addressing the ongoing skills shortage, and improving electric vehicle charging infrastructure, among others.
“NFDA will immediately engage with the new Labour government on these key issues, reaching out to Parliamentarians as the new Cabinet begins to form.
“The next few months and years will be pivotal for our industry. It is essential that the new government works with NFDA and the automotive sector throughout the UK to offer robust support on these key issues while unlocking the dynamic potential of this sector.”
LKQ UK & Ireland considers electrification transition
(Photo: LKQ Europe)
Auto parts distribution firm LKQ UK & Ireland added that it was looking forward to a “new government bringing a fresh policy perspective” in helping to deliver “a sustainable, prosperous future for the independent aftermarket.”
Kevan Wooden, CEO at LKQ UK & Ireland, said: “Starmer’s plans to restore the 2030 phase-out date for new cars with internal combustion engines (ICE) will have the most immediate impact on the industry. Some in the aftermarket had delayed investment plans for retooling and reskilling, but it will now be imperative for garages to kickstart their transition as to not miss out on electric vehicle (EV) custom.
“Labour’s plans to retain the full expensing tax incentive will help to reduce the cost of new equipment for garages. But Starmer’s government could go one step further by including learning and development within full expensing too. Incentivising training will be important to help meet the 2030 deadline, with only 11 per cent of UK mechanics currently qualified to work on EVs.
“The industry will want to learn how the EV skills gap can be plugged through Labour’s proposed body Skills England. A blend of automotive skills strategy and private training will be key to meeting the aftermarket’s future talent needs, and we’re well underway expanding the LKQ Academy to support this.
“The introduction of a standardised battery health certification scheme for used vehicles under Labour could also represent a new income opportunity for garages, incentivising them further to upskill and retool for servicing plug-in vehicles sooner rather than later. Garages and workshops will eagerly anticipate more details on the scheme.
“With a new government, we’ll continue to represent the interests of independent repairers as we help to inform and shape policy alongside our peers in the industry. This will include continued campaigning for fair, shared and secure access to the latest software and access codes – to ensure our customers can complete every job that comes in to the workshop safely and to a high standard. Doing so is key to protecting the 350,000 livelihoods the aftermarket supports, and ultimately to consumers’ ability to choose where they take their vehicles for great quality, great value, local service, maintenance and repair work.”
Petrol Retailers Association advocates low fuel duty, wants to tackle illegal hand car washes
The Petrol Retailers Association (PRA) stressed the importance of maintaining low fuel duty while also tackling illegality in the car wash sector.
Gordon Balmer, executive director of the PRA said that “recent unpredictable global events have highlighted the need for a sensible and stable Government, and we hope that this new administration will provide exactly that.”
“One of the immediate concerns for the new Government should be helping citizens manage their household expenses and offer a roadmap for the future. It is imperative to keep fuel duty low for motorists and a clear plan is needed to achieve the ambitious Net Zero targets.
“The issue of illegal hand car washes must also be addressed urgently. These operations not only exploit workers and evade taxes but also contribute significantly to the environmental pollution of our rivers. We strongly advocate for the rapid implementation of a National Licensing Scheme to regulate this sector.
“PRA looks forward to engaging with the new Government and we remain committed to advocating for the interests of our members and motorists.”
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