How the car industry responded to the 2021 Budget
The planned fuel duty increase has been cancelled, which is great news for motorists – but what about industry?
Today, chancellor Rishi Sunak revealed that the planned fuel duty increase would be cancelled, bringing welcome relief for motorists.
Sunak said it was part of his plan to do ‘whatever it takes’ to help people and business recover from the coronavirus pandemic, adding: “And right now, to keep the cost of living low, I’m not prepared to increase the cost of a tank of fuel.”
Car industry leaders have been speaking about the news, as well as what the rest of the Budget means for automotive. Here’s what they’ve had to say.
Mike Hawes, chief executive of motor industry body the Society of Motor Manufacturers and Traders: “Today’s budget provides some encouragement to an automotive sector hit hard by the pandemic and additional trading costs but it falls short of the support needed to transform the industry and market to the net zero future to which both the government and industry aspires.
“Confirmation that the industry’s calls for the furlough scheme to be extended until the end of September have been heeded and is extremely welcome as both the automotive manufacturing and retail sectors have suffered a massive fall in demand over the past year with showrooms still closed and supply chains disrupted.”
Nicholas Lyes, RAC head of policy: “Drivers will breathe a sigh of relief that the Chancellor has decided not to ‘rock the fuel duty boat’. We feared this would only pile further misery on drivers at a time when pump prices are on the rise and many household incomes are being squeezed as a result of the pandemic.
“Many drivers see their cars as a safe way to carry out essential journeys and believe having access to a vehicle is even more important as a result of the pandemic. If the Chancellor had raised fuel duty, he could have risked choking any economic recovery as it would have led to increased costs for consumers and businesses.”
Stuart James, chief executive of the Independent Garage Association: “There are hard times ahead for independent garages. A significant decline in MOT work is expected from April to June, where motorists took advantage of the MOT extension last year. Garages have also experienced lower volumes of servicing and repair work over the past year due to motorists making fewer journeys.
“Extending the furlough and business rate relief schemes will provide the financial assistance needed to help independent garages through this upcoming difficult period, so they can continue their essential work keeping vehicles in their local communities safe and roadworthy.”
John Wilmot, CEO of car leasing comparison website LeaseLoco: “The lack of any meaningful funding announcement by the Chancellor on the electric car switchover is disappointing, particularly with current incentives aimed at business company car users, and not wider consumer adoption.
“With so much to do before 2030 in terms of encouraging car owners to early switch to cleaner, electric cars, and building a charging infrastructure that can cope with growing demand, this is not the time for the Government to take its eyes off the ball, despite the obvious distractions.”
Sue Robinson, chief executive of the National Franchised Dealers Association: “We have previously highlighted that the Business Rates Holiday represented one of the most welcome forms of financial support offered by the Government during the pandemic. Following our requests for a business rates holiday extension submitted ahead of the budget, today’s announcement is positive, as it will continue to support retailers while the economy reopens, and we come out of the pandemic”.
