The Independent Garage Association (IGA) is urging the government to act, as financial pressures mount on independent workshops.
Despite repeated calls for targeted support, independent garages once again find themselves overlooked at a time when rising costs continue to escalate across the sector.
As of 6 April, employers now pay 15% rate of National Insurance contributions (NIC) for their employees, up from 13.8%. The threshold at which employers begin paying NIC has also been lowered from £9,100 per year to £5,000 per year, meaning contributions start at a much earlier point in staff salaries.
This comes in addition to increases in the National Minimum Wage and other rising operational costs.
Burdens on independent garages
The increase in employer contributions places an additional burden on independent garages already facing significant financial strain. It will not only exacerbate the day-to-day operational challenges they face, but also inevitably restrict opportunities for business growth, investment, and recruitment.
The IGA has consistently called for meaningful relief for the independent garage sector, urging recognition of its essential role in keeping the UK’s motorists safe and their vehicles roadworthy.
The body has highlighted the intense pressure from surging energy bills, equipment prices, and staffing costs, all of which remain unaddressed by policymakers.
“The latest increase to National Insurance contributions is yet another blow to independent garages, which have already endured relentless cost hikes with little recognition or relief from Government,” commented Jonathan Douglass, Director of the IGA. “These businesses provide essential road safety services to motorists and local communities, yet they continue to be left behind.”
The added financial pressure not only affects the sustainability of these garages but also directly limits their ability to grow, invest in new talent, or modernise operations. The Government must urgently reconsider its approach to ensure that independent garages are not adversely affected by policy that undermines confidence and holds back investment, or worse still, threatens closure.
“The IGA continues to advocate for fair treatment and meaningful engagement with the independent garage sector,” Douglass concluded. “We urge the Government to work with the IGA to create policies that foster business resilience and growth rather than stifle it.”
The call to action comes after the IGA has conducted a meeting with the government to increase the cost cap for the MOT. However, this potential boost for the aftermarket was omitted from the recent Spring Statement.
