Last week saw Chancellor, George Osbourne, deliver the 2011 Budget. Newspapers have been filled with articles and stories about how the British public will be affected by the changes.
With this in mind, Think Insurance, the specialist motor trade insurance provider, have pulled out the key points that affect the motor trade industry and commented on how they feel the industry might be impacted.
- Fuel duty to be dropped by 1p
- Fuel duty escalator to be cancelled
- Increase in Income Tax Relief for small businesses from 20% to 30%
- Reduction of Corporation Tax by 2% in April, and will continue to fall by 1% for 3 years
- £1,000 rise in personal tax allowance to £8,105, from 2012
- £100m to fund pothole work on Britain’s roads
- Vehicle excise duty to rise by inflation only. Rates for HGV frozen
- 100,000 new work experience places and 40,000 apprenticeships
Garrath Hussey, CEO of Think Insurance, comments on the 2011 Budget and how he feels motor traders will be impacted. “We welcome many of the changes announced yesterday. Perhaps the most notable and relevant change for motor traders is the drop in fuel prices. Even such a small sum will undoubtedly help motorists and car dealerships across the country”.
Hussey continues “The support and funding being focused on apprenticeships should also have a positive impact on many businesses in the motoring retail sector, and will of course help improve the unemployment rates in this country overall”. Hussey concludes “Of course we can’t expect things to change dramatically overnight, but we can at least feel reassured that we are moving in the right direction, and that the government seems to be supporting UK businesses. This can only be positive for motor traders and other businesses in our industry”.