the skills gap in the industry, delaying the intake of young apprentices actively seeking employment. We hope to hear more from the Government on these important issues in the coming weeks." Missed opportunity As recently as the day before the Spring Budget, the SMMT had continued to call on the Government to offer more support for the transition to zero emission vehicles by halving VAT on new EVs for three years, amending proposed VED changes, and cutting VAT on public charging to bring it level with home charging. On that basis, SMMT Chief Executive Mike Hawes saw what was actually laid out as missing the chance to give EVs a boost: “Government has been keen to assure the UK automotive industry’s competitiveness, with support for EV development and manufacturing – including £2.1 billion in autumn’s Advanced Manufacturing Plan – but there is little to help consumer demand. The Budget is, therefore, a missed opportunity to deliver fairer tax for a fair transition. “Reducing VAT on new EVs, revising vehicle taxation to promote rather than punish going electric, and an end to the VAT pavement penalty on public charging would have energised the market. With both Government and industry having statutory requirements to deliver net zero, more still needs to be done to help consumers make the switch.” Significance IMI CEO Steve Nash agreed with this view: “Despite talking about encouraging investment in future technologies, today’s Spring Budget seemed to miss the opportunity to make some small changes that would support the widest automotive sector as it faces a continuing skills gap while trying to future-proof itself. There was also nothing done to encourage more people to move to lower and zero emissions vehicles. For the UK to achieve its green ambitions every part of the automotive sector must be supported and that includes the aftermarket.” Looking towards businesses looking to invest, Steve lamented the end of the Super Deduction: “Whilst the addition of leased assets in the Full Expensing 100% first year capital allowance may provide some businesses with help, it’s disappointing that the Super Deduction was not reintroduced. This would have provided the wider aftermarket with essential help to ensure it is adequately equipped and trained to support EV drivers.” He believed moves on childcare provision could have a positive impact on skills shortages, so long as the move towards more diverse hiring in the sector continues: “It was however encouraging to hear that the Chancellor intends to maintain the Back to Work plan and improve the Childcare offer to give more people who may have felt they couldn’t get back to work, back into the workplace. The IMI is working with automotive employers to ensure they can attract the most diverse workforce through our Diversity Task Force and the ‘There’s More to Motor’ campaign and we hope the government’s actions, including its intention for the National Insurance cut to encourage more people into the workforce, will help.” He added: “Cynics might say it was a Budget for an election – sadly it seemed to miss the significance of how important the automotive sector is to the UK’s economic and social infrastructure as a whole.” Widening skills gap The growing EV car parc and the lack of trained technicians should both have been addressed by the Budget as far as Autodata Technical Director James Lett was concerned: “Across the UK there’s a widening skills gap amongst car technicians not having the skills or tools to repair EVs. Without Government support, garages and auto technicians are being left behind in the EV revolution. “The IMI predicts a shortfall of over 29,767 technicians in 2035, the same year the ban on new combustion engine vehicles being sold has been extended to. Like many in the industry, we had high hopes that the Spring Budget would recognise the need for critical investment and support. “A million EVs are already on the road, but they can only be serviced or repaired by technicians with specialist training and tools. Neither of these are cheap nor do we see any government investment to change that. Not only are garages losing money by turning down business, EV drivers can’t access the services they need to safely be on the road. It’s a catch-22 situation that cannot continue. “ Mixed feelings Despite the fact that businesses and fleets make up the majority of buyers for zero emission vehicles, Association of Fleet Professionals Chair Paul Hollick said more still needs to be done with regards to infrastructure: “There’s some mixed feelings here. In a lot of ways, one of the wins this Government can claim over the last 14 years is its commitment to electrification, and the impact that its policies have had on the fleet sector in terms of moving to zero carbon emissions have been marked and dramatic. “The truth is that more assistance in this area is now required – especially when it comes to van electrification where there are fundamental issues to overcome as well the need for a further increased rollout of charging infrastructure – and there was no sign of that help arriving at any time soon.” While he noted the positives, Vehicle Remarketing Association Chair Philip Nothard said it was what was left undone that counted for this Budget: “What we really wanted to see from the Government was help to underpin the proper functioning of the used car market as it moves to electrification. There are clearly issues with levels of demand and residual values that need to be resolved as supply of EVs into the sector continues to rise quite rapidly. There are a range of possible solutions that have proven successful in other countries – from zero interest loans to subsidies. 10 AFTERMARKET APRIL 2024 BIG ISSUE www.aftermarketonline.net Unfortunately, the Budget missed several opportunities to address key concerns ”
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