Stand up, you’ve got to manage if you are in the automotive aftermarket. Latest IMI figures indicate if uptake for High Voltage (HV) training remains at current levels there will be a shortfall of 36000 appropriately qualified technicians by 2030, the date new internal combustion engine cars is scheduled to cease. Although the budget ushered in a new level of spending for training, the education announcements were highly focused on school spending, retraining, and basic skills for adults – where does this leave access to training for the skilled technician needed to fulfil the government ambition for zero emission personal transport?
The budget pledge of £817m for the electrification supports zero emission vehicle manufacturing, gigafactories, and the supply chains – but not the essential repair and maintenance of keeping these vehicles on the road. The additional funding for infrastructure for both public and residential charging points also does not include maintenance and repair for vehicles in that scope. This big state mentality has not been seen since the 1950’s, but it leaves behind a significant number of those essential in keeping the country moving.
Big Government/State – a term to describe high taxation & government spending
Increases to minimum wage, and the introduction of the health and social care levy, are likely to knock on through each pay scale, HV equipment investment for a workshop is expensive, but there is some government support from the Super Deduction. The lack of clarity surrounding the support through the business rates framework, coupled with reluctance to completely overhaul the rates system, creates potential for uncertainty within the aftermarket. As the beer sellers will explain, their cut in duty doesn’t cover the increase in staff costs, leading to a speculated increase of 30 pence per pint of beer pulled once the announcements within the budget come into operation. At this point, until the costs of business rates have filtered through the devolved nations, and the adjustment for wages within the sector come into effect, it is more problematic to speculate the costs that ultimately land in the lap of the motorist.
With the country borrowing far less than expected, people are earning more and increasing the tax take, the level of spending within this budget will help ease the economy in post pandemic recovery. The u-turn regarding universal credit is a significant acknowledgement of the struggles faced for low income working families, but without scaffolding for affordable green private transport solutions – will this be enough to keep Britain moving? Will it allow for the small business aspect aftermarket to self invest if they are to left outside the scope of government support granted to every other aspect of transport electrification?
Hayley Pells is actively engaged at national political level, following a conversation the morning after the budget announcement with the Chief Secretary to the Treasury, Simon Clarke MP, she posed questions requesting clarity regarding the government intention for existing skilled technician HV training uptake. There was significant discussion examining the current scope and the lack of inclusion of this critical area to assist the automotive aftermarket in their contribution to government ambition for the 2030 deadline.