Today (Wednesday October 28th), has seen John Healey deliver his first budget as chancellor, stay tuned to Garage Talk for all of the latest industry reaction, this article will be updated as more comes in.
Budget misses the opportunity to back the people who keep Britain’s vehicles safe, says IMI
Professional body says the Budget fails all three of its tests, putting growth, net zero and road safety ambitions at risk
The Institute of the Motor Industry (IMI) has said today’s Autumn Budget was a missed opportunity to invest in the skilled, competent automotive workforce on which the government’s ambitions for growth, net zero and road safety ultimately depend.
“Every one of the government’s ambitions depends on having enough skilled, competent people to service, repair and maintain the vehicles on our roads,” said Nick Connor, CEO of the IMI.
“The sector is facing a perfect storm of workforce shortages, an ageing vehicle parc and rapid technological change, yet today’s Budget does nothing meaningful to address it. Without targeted investment, those pressures will hold back productivity, slow the adoption of new technologies and increase the risks for employers and motorists alike.
“Growth, net zero and safer roads all start with the people who keep Britain’s vehicles on the road. The IMI stands ready to work with government to put in place the skills those ambitions depend on. In particular, we eagerly await the actions from the Milburn Review. Automotive has, historically, been one of the strongest sectors for providing a vital transition from education into the workplace with an above average representation of apprenticeships. And with SMEs making up over 95% of our sector these businesses need the support from government to offer young people a first step into skilled work.”
Fuel duty freeze welcomed as motoring expert warns drivers to make the most of temporary relief at the pumps
Commenting on the Autumn Budget, Graham Conway, managing director of the UK's largest vehicle leasing broker Select Car Leasing, said:
“Drivers will breathe a huge sigh of relief that the Chancellor has listened to concerns from motorists and put the brakes on January’s planned fuel duty rise, while retaining the 5p-per-litre cut.
“With diesel prices sitting around £2 a litre and petrol not far behind, hiking duty this winter would have been a real kick in the teeth for motorists who rely on their vehicles.
“For many people a car or van isn’t a luxury, it’s part of their job, how they do the school run, or look after elderly relatives - among countless other essential tasks.
“Those households have been absorbing record prices at the pumps since the conflict in the Middle East sent the cost of oil soaring and many will have run out of wriggle room in their own personal budgets.
“It’s also worth remembering the Treasury is on course to bank a hefty windfall in extra VAT from higher fuel prices in general, so this was a decision the Chancellor could arguably afford to make.
“But this is only a temporary relief. The 5p cut has now been extended time and again, and at some point the bill will come due.
“The best advice is to use this bit of breathing space wisely by shopping around for the cheapest prices at the pumps while really assessing your vehicle options - particularly whether you could switch to an EV or hybrid.
“We know from our own research that running an EV over the course of a year and 10,000 miles could help you save more than £1,000 compared with a traditional petrol or diesel car, when you charge at home. You can save even more than that if you have access to a low off-peak energy tariff.
“We understand the reticence from some when it comes to EVs and they won’t be feasible for all, but with more and more affordable EVs joining the leasing market, it’s an option that many drivers will already be exploring.”
Tim Rodie, motoring expert at Motorpoint explains what the Autumn Budget means for diesel owners and shares three signs that it might be time to sell.
Tim explains: "A fuel duty freeze will be welcome news for drivers, particularly those already feeling the pressure of higher fuel prices. However, it's important to understand that freezing fuel duty doesn't automatically mean prices at the pumps will come down.
"Fuel duty is just one component of what motorists pay, alongside wholesale fuel prices and other costs. Even with the freeze, drivers could continue to see fluctuations in their fuel bills.
"However, I wouldn't recommend selling a diesel vehicle based on the Budget announcement alone. For motorists regularly covering long distances, diesel can still offer excellent fuel economy, and replacing a reliable car could end up costing more than keeping it."
James Tew, CEO, iVendi: “We’re in an odd moment where businesses in general and within the used vehicle sector specifically often feel under considerable pressure but simultaneously, the market and the wider economy are proving remarkably resilient. Little in the Budget changes that picture, although there is targeted help for some businesses with energy costs and encouragement for start-ups.
“Where the Chancellor might have an impact is by maintaining consumer confidence, which has see-sawed in recent months in line with rising and falling oil prices. If a reasonable level of feel-good momentum can be maintained by measures such as the modifications to gas standing charges, and car buyers feel they have disposable income, that is good news for our sector.”
Apprenticeship Central reaction to the Autumn Budget
The Autumn Budget is in. So, what does it mean for automotive employers? Here’s what we know so far, and what caught our attention:
Apprenticeships: the Budget confirmed £100m for local apprenticeship services that connect young people with employers. They start in spring 2027 across all 14 mayoral areas.
Youth employment: almost one million young people are not in education, employment or training, and the Chancellor said he won’t write them off. The Milburn Review publishes its final report next month and the government will respond before the end of the year, with a white paper follows. More to come from us as it lands.
Employment costs: the National Minimum and Living Wage rises 3.9% from April. Worth building into recruitment and staffing budgets now.
Our initial takeaway? The focus on getting young people into work is clear. But getting them through the door was never the hardest part. Keeping them is, and that’s where the detail will matter.
Oliver Brighton, CFO, char.gy, said: “For households without driveways, charging is a street-level service, not a motorway stop. Councils already know where residents need chargers. What they need is the freedom and long-term funding certainty to turn local plans into installations at scale.
“Today's devolution measures are a welcome opportunity to give local authorities greater flexibility over investment. The new funding arrangements could help councils move beyond piecemeal projects and commit to neighbourhood-wide charging programmes, working with private operators to deliver more quickly and efficiently. The measure of progress is whether someone living on a terraced street can reliably plug in close to home.”
Ben Nelmes, CEO, New AutoMotive, said:
“It is not fair that people who cannot charge their electric car at home must pay significantly more for their electricity. It is good to see the Chancellor taking steps to allow drivers to use their home electricity tariff at their local charge point. It is vital that this work moves at pace to end Britain's driveway divide.”
Simon Smith, CEO, Voltempo, said:
“This isn’t about asking for more money. It’s about making public investment work harder. Electric trucks can deliver significant savings on running costs, but hauliers can only unlock those benefits if their depots have the power to support them.
“The Depot Charging Scheme is a welcome step, but funding chargers without the infrastructure to run them risks leaving businesses with equipment they cannot use. Government must support the full cost of making depots electric-ready and recognise the reality of grid connection delays. Get that right, and we unlock private investment, cut freight costs and accelerate the shift away from diesel. That’s how you turn a grant into economic growth.”
Tanya Sinclair, CEO, Electric Vehicles UK, said:
“The Chancellor has addressed the immediate pressure on household budgets, but the Government cannot claim to be helping motorists with one hand while making the transition to electric harder and more expensive with the other.
“Electric motoring is already helping drivers escape volatile pump prices, and many more could benefit if the Government tackled the policy barriers keeping public charging unnecessarily expensive, particularly for those without driveways. Meanwhile, the Government is considering weakening the ZEV mandate, a move that would undermine the competition and investment needed to bring more affordable electric cars to market. Ministers should be making it easier and cheaper for drivers to switch, not putting new barriers in their way.”
Matt Galvin, Managing Director of Polestar UK, said: “Extending the VAT cut on household electricity is good news for drivers who can charge at home, keeping costs to around 7p a mile on a standard tariff and as little as 2.3p off-peak. The £100 Household Energy Payment will also ease the squeeze on household budgets in lower council tax bands in England.
“But for the one in three drivers without a driveway, this Budget is yet another missed opportunity. They are still paying 20 per cent VAT at public chargers, while those charging at home currently pay nothing. Instead of setting out a plan to end this driveway discrimination, the Chancellor is legislating to lock it in. The £100 million for local chargers is a welcome step, but it does nothing to close the tax gap.
“Cutting VAT on public charging to 5 per cent would cost an estimated £140 million a year, roughly a tenth of the £1.36 billion the Government has just found to extend the fuel duty cut. If the Chancellor can find that for petrol and diesel drivers, he can find it for the drivers who have already made the switch. It's time to end driveway discrimination for good.”