The Vehicle Remarketing Association believes there is an imbalance in government incentives between new and used electric vehicles. It says more needs to be done to ensure a healthy market for used models. The association is calling for this support to feature in the Spring Budget. VRA chair Philip Nothard said: “The government should be applauded for doing much in recent years to encourage uptake of new EVs, especially through low personal company car taxation. This has been notably successful and electric power now makes up a significant proportion of new car sales. However, the used car sector has so far been left to look after itself when it comes to EVs and, as shown with dramatic price falls in recent weeks and months, demand is extremely variable even for the relatively low numbers of electric cars now making their way onto the used market.”
The Autumn Budget offers a balance of positive infrastructure measures and concerns over the support of car parc electrification, according to Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA). A variety of measures affecting the British automotive industry were set out in the Thursday 17 November Autumn Statement by the Chancellor, Jeremy Hunt. “As a whole, the Autumn budget announced today promises growth and investment that the UK so desperately needs,” Robinson said. “Whilst there are positive notions in areas such as business rates and infrastructure investment, NFDA is concerned that the removal of tax exemption for EV owners could set back the objective of electrification and increasing the number of electric vehicles sold in the UK, in a bid to reach the ever-challenging 2030 targets.”
The National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK, has reacted to the Autumn Budget and Spending Review 2022, details of which were outlined in Parliament earlier today (23/9/22). Sue Robinson, NFDA chief executive, commented on the announcements made today by the Chancellor regarding National Insurance contributions, Corporation Tax, the Energy Bill Relief Scheme, business rates, and infrastructure spending.
The Covid-19 pandemic may have caused the biggest financial crisis of a generation as well as record spending and borrowing levels, but economic highlights aren’t as bad as was expected and UK Chancellor of the Exchequer Rishi Sunak isn’t raising taxes as fast as feared. Here, Tyres & Accessories takes a look at the main points pertaining to the tyre business and specifically: the furlough extension, the corporation tax increase, continued business rates holiday, and the introduction of freeports.
The Chancellor has announced a new £2 billion Kickstart Scheme will be launched to help employers create jobs for young people at risk of long-term unemployment. Funding available for each six-month job placement will cover 100 per cent of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.
Following a budget that committed to the largest portfolio of inward investment in 30 years, on 14 May 2020 the UK Transport Secretary promised £1.7 billion for local road repairs and fast-tracked construction works worth £175 million while fewer passengers are using transport system. Hundreds-of-millions-of-pounds worth of upgrades have already been made to the nation’s road and rail networks during the lockdown period with more planned over the coming weeks and months. For the tyre industry, the new could also support flagging demand for OTR and off-road tyres used in such construction projects.
In what has, for obvious reasons, been dubbed a Covid-19 budget, new UK Chancellor the Exchequer (the Right Honorable Rishi Sunak MP) promised the highest levels of inward investment for 30 years including a number of initiatives that will help small and medium-sized business such as tyre retailers and garages.
The Petrol Retailers’ Association (PRA) is seeking urgent confirmation from the Treasury that petrol filling stations (PFS) will be eligible for small business rates relief announced in the Budget. This request comes after some confusion in the 2013 Budget, when the Treasury did not specifically include PFS as one of the eligible business categories. The PRA had to intervene to obtain formal confirmation that, subject to State Aid de minimis limits and the rates threshold, the discount scheme was applicable.
While many have been talking about chancellor of the exchequer the right honourable Phillip Hammond MP’s decision to increase the personal allowance threshold from £11,850 to £12,500 in April 2019, for those of us connected to the automotive and transport industries this year speech is probably best described as a pothole budget. True Hammond has raised personal allowance threshold and has raised the point at which people start paying higher rate tax (40 per cent) to £50,000, but the automotive industry was hoping for much more clarity and even support the wake of a Brexit-fuelled, uncertainty ridden market context.
Measures announced in the Autumn Budget this week to increase the liability of illegal waste site operators have been welcomed by the Tyre Recovery Association (TRA). As of 1 April 2018, sites operating without the relevant environmental disposal permit, and those knowingly facilitating illegal waste disposal, will be liable to pay Landfill Tax and face fines amounting to an additional 100 per cent of the tax’s value. Operators of illegal sites will remain liable to criminal prosecution.
The headline news from chancellor Phillip Hammond’s latest budget is that Stamp duty is to be abolished immediately for first-time buyers purchasing properties worth up to £300,000. Those first-time buyers purchasing properties over this amount won’t pay stamp duty on the first £300,000. However, there was less to say with regards to the automotive industry and business in general.
Nevertheless, the fuel duty rise for petrol and diesel cars scheduled for April 2018 has been scrapped. At the same time car tax for new diesel cars not meeting latest standards is to rise by one band next year. The good news for businesses reliant on deliveries is that this particular tax hike will not apply to van owners.