The Autumn Budget announcement contained a number of announcements related to the automotive market. Most of these were aimed at drivers, including a new pay-per-mile tax for EV drivers, and an increase in fuel duty from 2026.
For the aftermarket, key areas of note included the funding of apprenticeships for under-25s in small and medium-size enterprises, and the raising of both the national minimum wage, and
With this in mind, these are some of the reactions from the aftermarket, and the wider motoring industry, to the Autumn Budget.
IAAF – Autumn Budget misses the point
“The automotive aftermarket is significantly the largest element of the UK automotive sector, and the Autumn Budget does nothing to support the thousands of businesses that deliver affordable mobility to the millions of motorists every day,” commented Mark Field, Chief Executive of the IAAF.
“We are an aftermarket, not an afterthought and short-term thinking by successive governments has now meant £4 billion of grants to sell electric vehicles that not everybody wants or can afford. Even more remarkable is this government’s plan to charge the ones that do, with a pay per mile tax on EVs. This will further reduce EV adoption.
“Instead of dumbing down EV adoption by subsidising the price of cars, we should be supporting businesses and programmes that deliver on the sensible notion that a technology neutral approach to future mobility is the best way to ensure effective consumer choice and affordable motoring.”
IGA – limited reassurance
The Independent Garage Association (IGA) reviewed the measures announced in the Autumn Budget by the Chancellor, Rachel Reeves. While the decision to fully fund apprenticeships for under-25s in small and medium-sized enterprises (SMEs) is a welcome and positive step, much of the remaining Budget provides limited reassurance for independent garages across the sector, the body stated.
Beyond the apprenticeship announcement, the Autumn Budget offers little meaningful support for SMEs. Independent garages continue to face rising costs, tightening margins and increasing regulatory complexity, yet today’s measures do not deliver the assistance or relief they urgently need.
Questions also persist around EV policy. Although the Government has committed further investment to support EV infrastructure and adoption in the Autumn Budget, the introduction of EV “pay-per-mile” taxation represents a clear setback, undermining consumer confidence and creating additional uncertainty for businesses preparing for an electric future. Clear, consistent policy is essential, yet the message remains mixed.
The rise in the National Minimum Wage may not directly affect every independent garage, however, it will have a knock-on effect across staffing costs, supply chains and associated costs, adding further pressure to businesses already contending with higher energy bills, equipment costs and insurance premiums.
“While the commitment to making under-25 apprenticeships free for SMEs is a step in the right direction, the rest of the Autumn Budget feels ambiguous and offers little real-world support for independent garages,” said Jonathan Douglass, Director of the IGA.
“The negative impact of EV pay-per-mile proposals, rising operational costs, and higher taxes on savings and dividends create yet more challenges. The Government must commit to clearer, more supportive measures.”
GSF Car Parts – a pivotal moment
“The introduction of a mileage-based tax for electric vehicles from 2028 is a pivotal moment for the UK automotive market,” Steve Horne, CEO of GSF Car Parts, commented about the Autumn Budget. “While designed to address falling fuel duty revenues, the Office of Budget Responsibility (OBR) forecast of 440,000 fewer EV sales over five years signals a slower transition to electrification.
“For the aftermarket, this means ICE vehicles will remain on the road longer, creating sustained demand for traditional parts and maintenance.
“GSF are committed to supporting both existing and new technologies to the fullest extent possible with parts, consumables, equipment, training and business support. We will remain laser-focused on customer requirements and on supporting garages, working proactively with our global supply chain to stay ahead of market changes.”
SMMT – Recognition and warnings
Mike Hawes, SMMT Chief Executive, commented: “In the Autumn Budget, the government has recognised the automotive industry as a pillar of national strategic importance, backing it with an industrial strategy and additional £1.5 billion to drive competitiveness and investment. Deferring the end of employee car ownership schemes into the next parliament, meanwhile, will be welcomed by workers across the sector.
“Changes to the VED expensive car supplement are welcome, as is the additional £1.3 billion funding for the Electric Car Grant and support for charging infrastructure. These will help, but will not offset the impact of introducing a new electric-Vehicle Excise Duty, the wrong measure at the wrong time.
“Manufacturers have invested to bring more than 150 EV models to market. However, the pressure to deliver the world’s most ambitious zero emission vehicle sales targets, whilst maintaining industry viability, is intense.
“With even the OBR warning this new tax will undermine demand, government must work with industry to reduce the cost of compliance and protect the UK’s investment appeal.”
RAC – Slow down inevitable
“The Government will be aware that taxing all plug-in vehicles per mile from 2028 could slow down the transition to electric vehicles,” stated Simon Williams, RAC Head of Policy. “This is no doubt why it has expanded the Electric Car Grant in the Autumn Budget.
“With fuel duty revenue set to decline as more EVs come on to the road, this is one lever the Chancellor clearly feels she can pull to keep the money coming in.
“The implementation will be critical, so the devil is very much in the details. “We note the Government has not cut VAT on public charging from 20% to 5% to match the rate levied on domestic electricity. This means drivers who can’t charge at home will continue to pay more.”
PRA – increasing financial burden
Looking at the fuel duty changes brought about in the Autumn Budget, the Petrol Retailers Association (PRA) stated: “Although we welcome today’s announcement by the Chancellor that the 5p fuel duty cut will at least be extended until the end of August 2026, the failure to make the cut permanent and the announcement of its phasing out by March 2027 will significantly increase the financial burden on motorists with the expectation of steep rises in fuel cost in September 2026.
“This increased burden on families, as well as hauliers and delivery firms, will push up the price of food, goods and services across the economy.”
