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130313 BudgetThe National Franchised Dealers Association (NFDA) represents 4,700 franchised dealers that sell, service and repair new and used vehicles, employing individuals in the customer-facing side of the motor industry.

This week’s budget announcement continues to encourage security and business growth.

The NFDA is broadly encouraged by today’s budget. The changes to corporation tax and the review of vehicle excise duty which we have widely supported are positive announcements. Funding changes to apprenticeship schemes will help the sector that already employs a significant number of apprentices. Also is today’s budget, changes to the first MOT timing were noted, and we are awaiting further clarification on this point.

Sue Robinson, NFDA Director


Government will introduce a new VED tax for new cars at £140 a year from 2017. This will be three tax bands and the revenue will be ring fenced in a separate fund for road improvements.


Fuel duty will remain frozen for the remainder on the year.


The Chancellor confirmed that Corporation tax will drop to 19% in 2017 and 18% in 2020. This will be the lowest rate in Europe, and will be welcomed by both UK business and international companies looking to invest in the UK.


Apprenticeship levy to be imposed on all firms. For those that offer apprenticeships, they will get more out of this in terms of funding they put in.


Tax free personal allowance to be raised to £11,000 next year. After that, the personal allowance will always rise in line with inflation.


A new national living wage to be introduced. It will apply to over-25s. It will start next year at £7.20, rising to £9 a year by 2020.


It was announced that elected mayors and councils will be given the power to relax laws locally on Sunday trading hours if it might boost economic activity.

Posted by Sue Robinson on 10/07/2015