The hugely increased burden that today\u2019s Budget places on remarketing businesses means that Labour\u2019s growth strategy must succeed, says the Vehicle Remarketing Association (VRA)<\/p>\r\n\r\n\r\n\r\n
Philip Nothard, VRA chair, said that moves such as the increase in Employers’ National Insurance and high minimum wage would have an impact on costs for almost every business involved in the sector.<\/p>\r\n\r\n\r\n\r\n
\u201cIt\u2019s arguable that people elect a Labour government in the expectation they will increase taxation to fund higher spending on public services. What feels unusual in this Budget is both the sheer amount – \u00a340bn is undoubtedly a lot of money \u2013 and the degree to which businesses are being asked to foot the bill.<\/p>\r\n\r\n\r\n\r\n
\u201cRemarketing remains a people-intensive sector and the cost of employment will go up quite substantially as a result of moves such as higher Employers NI. For major dealer groups, that alone could easily mean an increase approaching seven figures.<\/p>\r\n\r\n\r\n\r\n
\u201cThis places pressure on remarketing businesses to either grow or cut costs. If the Labour government can deliver on its investment promises, perhaps this higher tax burden will be absorbed but the growth figures mentioned by the chancellor were only moderate, and cost reduction looks like much the more likely solution.\u201d<\/p>\r\n\r\n\r\n\r\n
The VRA welcomed a range of other government measures included in the Budget, Philip added, including the \u00a3500m allocated to potholes and \u00a32bn to be spent on the zero-emissions vehicle manufacturing sector and supply chain.<\/p>\r\n\r\n\r\n\r\n
\u201cThere are quite strong signs that the Labour government \u2018gets\u2019 the motor industry and wants to play a positive role in supporting everyone from manufacturers to motorists, but they have very much now created a situation where if they want to benefit from the increase tax burden, they need to deliver on their growth promises.<\/p>\r\n\r\n\r\n\r\n
\u201cKeir Starmer has repeatedly said that he wants to be judged by results and that should be as true in the remarketing sector as elsewhere. If we don\u2019t see sustained, strong growth throughout this Parliament, questions will undoubtedly be asked.\u201d<\/p>\r\n","protected":false},"excerpt":{"rendered":"