IGA reacts to Spring Statement with disappointment over lack of support

Independent garages seek clarity and relief from rising costs

IGA reacts to Spring Statement with disappointment over lack of support

The Independent Garage Association (IGA) has expressed disappointment with the Chancellor’s Spring Statement, citing a lack of support for small businesses, particularly independent garages.

While acknowledging the government’s efforts to manage national finances, the IGA notes the absence of concessions since the Autumn Budget to ease financial pressures on small businesses. The statement’s focus on construction investment overlooks the challenges faced by independent garages.

Despite no immediate changes to individual tax burdens, the IGA believes the measures could hinder growth and strain small businesses. The upcoming increase in the National Living Wage to £12.21 per hour from April 1, 2025, and the rise in employer National Insurance Contributions to 15% from April 6, 2025, remain significant financial burdens for garages operating on narrow margins.

Given low business confidence, the IGA is concerned about the lack of clarity on the Employment Rights Bill, which could impose additional administrative and financial burdens on independent garages. Without clear guidance, garages may struggle to invest and grow.

Stuart James, CEO of the IGA, stated, “The Spring Statement fails to provide the support that independent garages desperately need. While there are positive elements, such as the focus on infrastructure, the lack of targeted relief for small businesses and continued uncertainty around employment regulations make it difficult for independent garages to plan for the future.”

The IGA warns that without support, businesses will pass increased costs onto customers.

James concluded, “The IGA will examine the statement in more detail to understand its full implications and urge the government to provide greater clarity and targeted support to ensure the sustainability of the independent garage sector, which plays a crucial role in keeping the UK safe and mobile.”

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