IGA calls for government support amid rising costs for independent garages

Industry body warns National Insurance hike adds to mounting financial pressures

IGA calls for government support amid rising costs for independent garages

The Independent Garage Association (IGA) is urging the government to take action as independent garages face increasing financial pressures, highlighting that the sector has been overlooked despite repeated calls for support.

As of April 6th, the rate of National Insurance contributions (NIC) paid by employers has risen from 13.8% to 15%. Additionally, the threshold at which employers start paying NIC has been lowered from £9,100 to £5,000 per year, meaning contributions now apply to a larger portion of staff salaries.

This increase in employer contributions comes on top of rises in the National Minimum Wage and other escalating operational costs, placing a further burden on independent garages already experiencing significant financial strain. The IGA contends that this will not only worsen daily operational challenges but also limit opportunities for business growth, investment, and recruitment within the sector.

The IGA has consistently advocated for meaningful relief for independent garages, emphasising their crucial role in maintaining road safety and vehicle roadworthiness. The association has pointed out the considerable pressure from increasing energy bills, equipment prices, and staffing costs, issues that policymakers have yet to address.

Jonathan Douglass, Director of the IGA, stated, “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. These businesses provide essential road safety services to motorists and local communities, yet they continue to be left behind.”

The IGA warns that this added financial pressure not only affects the sustainability of these garages but also restricts their ability to expand, invest in new staff, or modernise their operations. The association is urging the government to urgently reconsider its approach to ensure that independent garages are not negatively impacted by policies that undermine confidence and hinder investment, potentially leading to closures.

Mr Douglass concluded, “The IGA continues to advocate for fair treatment and meaningful engagement with the independent garage sector. We urge the Government to work with the IGA to create policies that foster business resilience and growth rather than stifle it.”

To find out more about the IGA, please click here.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>


The reCAPTCHA verification period has expired. Please reload the page.

Have your say!

0 0

Lost Password

Please enter your username or email address. You will receive a link to create a new password via email.