Following the news that UK car production fell almost 17 per cent in September, Justin Benson, head of Automotive at KPMG UK suggested the latest SMMT car manufacturing figures could motivate government to consider automotive industry incentives:
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.
Drivers of diesel engine cars are likely to face a hike in fuel price, according to the Petrol Retailers Association (PRA). Chairman Brian Madderson states that the association “has been informed by a well-placed parliamentary source, that the Chancellor is likely to announce a 1ppl increase to fuel duty for all diesel drivers in this week’s Autumn Budget. This would be a thinly disguised tax grab using air quality issues as justification.”
The Petrol Retailers Association (PRA) has written to the chancellor of the exchequer urging him to not just freeze, but cut fuel duty by 5ppl in the Autumn Budget this month.
UK chancellor of the exchequer Philip Hammond’s spring Budget contained the Office for Budget Responsibility (OBR) upgraded growth forecasts for 2017, while predicting lower – but rising – figures for the years following the assumed activation of Article 50 as the country leaves the European Union. The government also confirmed an extra £690 million will be added to the £1.3 billion announced in autumn to improve transport networks in urban areas. In other transport news, the freeze on fuel duty has been retained.
Steve Nash, CEO of the Institute of the Motor Industry (IMI), has presented UK chancellor of the exchequer Philip Hammond with his ‘wishlist’ for next week’s Spring Budget. Top of the list is a request for the Chancellor to do more to encourage motorists to adopt new technologies – rather than penalising motorists driving the ‘wrong’ cars.
There are continuing suggestions from government sources that small businesses, especially those embracing ‘hospitality’, will be given concessions on their business rates liability in the March Budget.
While welcoming chancellor of the exchequer Phillip Hammond’s transport announcements in the 2016 Autumn Statement, KPMG analysts have criticised the focus on increasing capacity, rather than “making more from the capacity” the UK has already.
While the consumer pre-coverage of the Autumn Statement focused on government’s decision to ban upfront residential fees letting, in fact Chancellor of the Exchequer Phillip Hammond revealed something of his past as a transport secretary by announcing a series of investments in transport.
At the top of the list, £23 billion to be spent on innovation and infrastructure over five years. The chancellor also announced £2 billion per year by 2020 for research and development funding. And £1.1 billion extra will be spent on English local transport networks. £220 million aims to reduce traffic pinch points. All are likely to support the development both the automotive manufacturing and fleet businesses the tyre industry relies on for growth.
With over £5 billion year higher costs to consumer from rapidly rising fuel costs, Brian Madderson, Chairman of the Petrol Retailers Association (PRA) has again written to the chancellor of the exchequer to state the overwhelming case for a three pence per litre cut in duty in his Autumn Statement.
March diesel sales were up by 7.9 per cent, petrol sales up by a surprising 5.6 per cent and overall sales including commercial up by 7.0 per cent versus same month last year. “Latest Government data suggests that increased economic activity and cheaper prices had a significant impact on the demand for fuel in the month to 14 March”, said Brian Madderson, chairman of the Petrol Retailers Association.
British Chancellor of the Exchequer, Rt. Hon George Osborne MP’s 2016 budget lowers tax rates for small businesses, however large businesses face stamp duty and other increases. The surprise announcement of government-backed “Lifetime ISAs” is designed to help everyone save more for the future. But, at the same time as this, larger personal tax allowances were announced – suggesting people will have great levels of disposable income now as well.
Petrol retailers’ chief Brian Madderson has called on the chancellor to “keep fuel duty down” in this month’s Budget. Five years ago, the chancellor froze fuel duty, a move the PRA said led to “more goods being purchased and more people being hired.” The PRA has long lobbied for either frozen or reduced fuel duty on the basis that this helps to increase business and consumer spending.
The RMI applauds the Chancellor’s confirmed commitment in ‘rebuilding Britain’ and an industrial strategy for the automotive sector for a decade in the recent Autumn Statement.
“Also, it is positive to see the extension of the small business rate relief scheme for a further year which will benefit 600,000 small businesses”, said Sue Robinson, RMI Director.
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