Mike Hawes, SMMT Chief Executive, said: "The Chancellor is
right to set out measures to address the deficit while investing
for future growth. The automotive industry is a growth-driving
sector, fundamental to the delivery of the country's net zero
ambitions. We therefore welcome today's commitment of £2
billion of automotive transformation funding as part of the
government's modern Industrial Strategy.
“Delivering that strategy depends on the UK being globally
competitive. Additional National Insurance Contributions will put
massive pressure on the automotive supply chain which is
predominantly SMEs. Next year's spending review must find
resources to fund measures that alleviate the strain on these
companies and help them transition to an electrified future.
“A strong manufacturing sector depends on a strong market. The
lack of substantive measures to support the new car market –
in particular for electrified vehicles – is hugely disappointing.
We welcome the extension of the Plug-in Van Grant and company car
tax benefits, but these alone cannot drive the growth in demand
needed. With the sector challenged to deliver the world's most
ambitious EV transition targets, achievement of those targets is
in serious doubt. There must be an urgent review of the market
and regulation, else the cost will soon be felt in reduced UK
investment, economic growth and jobs.”
