As Andy Burnham takes the keys to No. 10 Downing Street, the automotive industry is calling on the new Prime Minister to recognise the role played by the sector in the UK economy.
Key considerations include a review of the zero-emission vehicle (ZEV) mandate that is pushing for increased electrification of the UK car parc, above natural demand. For the aftermarket, understanding the direction of the new-car sector is critical, as training and preparation is required should the shift to all-electric models accelerate.
There is also likely to be an increased push to look at the MOT fee. The current cost cap of £54.85 is proving to be increasingly unsustainable having not changed in over 16 years.
There is also the increasing skills gap, and a need to recognise and welcome apprentices, while making it easier for businesses to take on new talent.
Opportunities ahead
“On behalf of the UK automotive industry, I congratulate Andy Burnham on becoming Prime Minister and wish him every success as he forms his new Government,” commented SMMT Chief Executive Mike Hawes.
“The Labour Party has already demonstrated its commitment to automotive manufacturing through the industrial strategy and, building on those foundations, the sector can be a powerful engine for growth, delivering investment, innovation and high value jobs in every part of the UK.
“There remain many challenges to the industry, both at home and abroad, but if we strengthen our competitiveness and provide greater support for the transition to net zero, we can drive reindustrialisation and economic renewal in every region and nation of Britain.
“We look forward to working with Andy Burnham and his team to realise that opportunity.”
Much to do for Andy Burnham
The Institute of the Motor Industry (IMI) has said it is hopeful that Andy Burnham will recognise the fundamental role played by the UK automotive industry.
The industry body has stated that, despite pre-election promises to put the motor industry at the heart of its plans for growth, the Labour government has to date repeatedly overlooked the sector in policy – and the consequences are becoming critical.
Without urgent action, the IMI warns the gap between the complexity of the vehicles on UK roads and the competence of the workforce maintaining them will continue to widen – putting motorists, technicians and the UK’s world-leading road safety record at risk.
“We congratulate Andy Burnham on becoming Prime Minister and we genuinely welcome his stated commitment to re-industrialisation and to technical and vocational skills,” Nick Connor, CEO of the IMI, stated. “However, before the general election, Labour promised to champion the motor industry – a sector fundamental to the UK’s economy and its social infrastructure. Two years on, that promise has not been delivered, and the skills gap in our sector has become a road safety issue.
“Vehicles are changing faster than at any point in history – electrification, connected systems, automated driving technology. The people who maintain, repair and recover them must be demonstrably competent, yet apprenticeship starts are falling and qualification levels are nowhere near where demand requires.
“As the new Prime Minister, Andy Burnham has an immediate opportunity to put this right: mandate IMI TechSafe, protect the rigour of automotive apprenticeships, and give our 800,000-strong workforce the recognition and investment it deserves. The IMI is ready to work with him from day one.”
The IMI is calling for the following commitments from Andy Burnham and his new cabinet, which will benefit not just the aftermarket, but the entire automotive sector.
1. Automotive Embedded in Re-Industrialisation Strategy – The Labour Party’s 2023 pre-election commitment was for a dedicated automotive strategy that encompassed manufacturing, aftermarket, supply chain, and workforce development. That has not been evident to date. The IMI is calling for recognition that a sector employing 866,000 people and generating £37 billion in annual GVA cannot be treated as a footnote within a broader manufacturing category and should take a central role in a Re-Industrialisation Strategy.
2. Consistency on ZEV Policy – Mixed messages on EV policies including the ZEV mandate have caused employers to pause investment in training. Whatever the final mandate parameters, the government must make clear that the transition to electric vehicles is irreversible and that skills investment must accelerate accordingly.
3. Government Mandating of the IMI TechSafe Standard – As the scope of technological development in automotive expands, the IMI is calling for government to ensure all technicians working on safety-critical aspects of vehicles on UK roads hold a recognised competence qualification, protecting both workers and motorists.
4. Apprenticeship Reform That Doesn’t Put Road Safety at Risk – The IMI has serious concerns about the current apprenticeship reforms. It is calling for a review of the reforms that maintains rigorous, independent end-point assessment, as well as protecting the depth and quality of training required to achieve real occupational competence.
5. Automotive Skills as a Pillar of Skills England – The sector’s workforce needs must be explicitly named and resourced within the national skills framework, not left to be inferred from cross-sector language.
Overall, with a new Prime Minister comes opportunities for recognition of the automotive industry. Andy Burnham will have a lot to do in order to build trust within the industry, but with a clean slate, the potential is there.
