Aftermarket May 2022

Above: Rishi Sunak looked to act as inflation pushed up prices across the board W ith inflation soaring, and multiple pressures affecting the automotive sector and many others, the Spring Statement from the Chancellor of the Exchequer offered some clarity on what changes from government businesses would have to deal with over the next few months. Rishi Sunak needed to perform a balancing act, as he looked to help individuals and businesses, while also dealing with a precarious economic situation, with inflation back in away not seen for decades. Critical Ahead of the Spring statement, IMI CEO Steve Nash urged the Chancellor to address funding for skills training, with a focus on EVs, but also beyond: “There’s no question the Chancellor has a number of pressing issues, but the IMI’s latest analysis of vacancies in the automotive sector highlights just how critical the skills situation is. We have been calling for the government to inject funding specifically into training to work on electric vehicles, but frankly right now businesses need help to bring on talent right across all areas of skills. “More needs to be done to help employers upskill their workforce. Retraining those currently out of work also needs to be addressed as a matter of priority. The massive advances in technology in automotive offer a wealth of opportunity. It’s critical therefore that the training is available for individuals who want to be part of what is an incredibly exciting sector. “New analysis from the IMI has found that automotive vacancies are at their highest level for 20 years, at more than 23,000, accounting for approximately 4% of the workforce. Motor trades had the sixth highest vacancy rate of all industry sectors.” Decision The Chancellor did indeed have a lot to deal with when he stood up in the House of Commons on Wednesday 23 March to deliver his Spring Statement. The headline feature was the fuel duty reduction. Fuel prices have soared in recent weeks as oil prices spiked due to the war in Ukraine. Post-pandemic pressures have played their part too, and diesel has gone up by 21 pence per litre since the start of 2022, with petrol not far behind. In response, the Chancellor announced that fuel duty was being cut by 5 12 AFTERMARKET MAY 2022 BUSINESS www.aftermarketonline.net SPRING STATEMENT 2022: AUTOMOTIVE SECTOR REACTS The automotive sector offered a range of opinions following the Spring Statement from Chancellor of the Exchequer Rishi Sunak