GSNL UK February 2024

UK finance review Three things garages need to know from November’s Autumn Statement As businesses begin to write their wish lists for Chancellor Jeremy Hunt ahead of March’s Spring Budget, we take a look back at his Autumn Statement. Was it more help or hinderance for garages and workshops?

Did you see?

Here are three things you need to know.

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Full expensing became a permanent fixture. In good news for the sector, full expensing became a permanent fixture. Full expensing is a capital allowance tax scheme that lets UK companies deduct 100% of the cost of capital equipment from their profits in the year it is bought. Many garages and workshops are investing in the equipment and infrastructure they need to service electric vehicles (EVs). So, full expensing should allow them to offset at least part of their investment into the equipment needed to handle EVs and ADAS-equipped vehicles.

£50 million was announced for apprenticeships. More funding for apprenticeships is always welcome, with many industries facing skills crises. However, the funding looks set for emerging industries, like AI and technology, which could be a missed opportunity for the aftermarket.

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Business rates will change. In another welcome move, the Chancellor froze the small business multiplier for business rates. This will help garages and bodyshops to keep costs under control in the face of continued, albeit decreasing, inflation. However, some will see this as a missed opportunity to reform a rates system that continues to penalise bricks and mortar-based businesses.

In Summary: The Autumn Statement painted a mixed picture for the independent aftermarket, which will undoubtedly be keeping a close eye on the Government’s intentions as we continue into 2024.

Garage Support | 2024 Issue 1 | Page 3