BCA’s Budget advice
April 21st, 2009 by Richard Aucock
CHANCELLOR Alistair Darling needs to act with caution tomorrow, if he’s to succeed in helping car makers.
BCA says that careful decisions need to be made if the Budget is to deliver long-term benefits.
Communications director Tony Gannon notes that ‘there appear to be mixed messages on the adoption of a scrappage scheme.’
He also added that ‘we should expect little movement on fuel tax and the road fund licence, if the pre-Budget report is to be adhered to.’
Slightly tongue in cheek, Gannon said that ‘if we could get the Chancellor’s attention for a few minutes, we would argue that some kind of stimulus for the car credit markets is actually more important.’
This is because many potential car sales are failing at the final hurdle. Car buyers just can’t get car credit – or, when they can, the deal is not affordable.
‘When these are instances involving car buyers with perfectly good credit ratings and the wherewithal to manage a loan sensibly, the motor industry is obviously losing potential business through no real fault of its own.’
Gannon even urges caution over the apparent boom in the used car market. ‘We believe there is more fragility in the market than we have previously seen.
‘The last thing we need now is to see the market stalling.’
He therefore joins the ranks in the car industry, by calling tomorrow’s budget ‘crucial’.
‘Supporting new car sales is vital, but it is equally important that the used car sector is helped as well. Used cars are a major part of the motor retail sector’s business and, therefore, a major contributor to the UK economy.’
BUDGET 2009: Give us a hand, Darling
SCRAP SCHEME NOW: A call to arms
Tags: BCA, Budget, Chancellor, darling
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