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Uncertainty surrounding Brexit and current negotiations has affected consumer confidence over the past months, it is essential that Government ensures that economic policy supports business and consumer spending in the forthcoming Autumn Budget.

In its submission ahead of the Autumn Budget 2017, NFDA raised with the HM Treasury a number of issues concerning the franchised retail automotive sector.

  • Electric Vehicle grants

NFDA called on the Government to continue to support the uptake of electric vehicles through various grants. The current Workplace Charging Scheme and Electric Vehicle Homecharge Scheme must be continued. Also, a second-hand electric vehicle grant must be introduced.

  • VAT and Electric Vehicles

Value Added Tax (VAT) levels for electric vehicles should be reduced to 15% now and, following the UK’s departure, to 5% which would bring in line with VAT on electric.

  • Fuel Duty

NFDA called for a freeze on fuel duty.

Although sales of electric vehicles keep growing significantly their market share remains low. To help encourage the uptake of electric vehicles, it is vital that the Government continues to support motorists through its grants and other incentives such as a reduction of the VAT.

With the current economic climate and sterling volatility, a continued freeze on fuel duty is absolutely crucial to support consumer confidence in a period of uncertainty.

It was positive to see that the Treasury confirmed in their response to the NFDA’s submission that they will be ‘examining’ our ‘ideas and suggestions’.

Following the Budget announcement, we will be engaging with Government and, in particular, addressing the issues around motor taxation.



Posted by Sue Robinson on 17/11/2017