SMMT calls for action
December 7th, 2009 by Richard Aucock
THE motor industry has handed Alistair Darling a letter outlining its concerns ahead of his Pre-Budget Report.
The move by the SMMT – ahead of the report on Wednesday – urges the chancellor to continue Government support to ‘safeguard the motor industry recovery’.
In the letter, SMMT chief executive Paul Everitt explains maintaining demand for private vehicles, taking steps to support businesses and helping to secure future growth are vital.
‘The Pre-Budget Report provides an important opportunity to sustain the recovery and support the longer-term competitiveness of the UK motor industry,’ said Everitt.
In the letter, the SMMT calls on the Government to:
• Maintain the reduced VAT rate of 15 per cent into 2010, and then rise it gradually
• Defer the 3rd stage of increases to DVLA first vehicle registration fees
• Remove the 3 percent diesel car penalty in the company car Benefit in Kind calculation.
The SMMT adds: ‘The success of the Scrappage Incentive Scheme has been crucial to stimulating private demand throughout the second half of 2009. It is vital that Government does not impose measures that could deter private purchases at this critical time.’
Steps to support businesses, the SMMT calls for include measures to stimulate demand for commercial vehicles too as well as lifting the expensive cap (£80k) for company cars so more premium motors are sold.
It also calls for funds to be released quicker under the Automotive Assistance Programme, more funding for research into green tech and continued scrapping the 20 pence per litre duty on bio-fuel scheduled for April.
The SMMT added: ‘Government’s commitment to create an Automotive Council and its endorsement of recommendations made by the New Automotive Innovation and Growth Team (NAIGT), demonstrates a desire to support the industry over the long term.
‘However, this initial support must be backed-up by immediate actions to ensure future success for the sector.’
The SMMT lobbied hard prior to the Budget this year for a scrappage scheme to boost the recession-hit market. Following its success, the SMMT again lobbied for an additional £100m to be added to the £300m pot for the scheme.
By James Baggott
Scrappage sales will not be changed
Tags: government, pre-budget, SMMT