Motor Industry’s initial reaction to Budget 2002
- Industry welcomes freeze on fuel duty along with further
tax breaks for cleanest vehicles
- Haulage sector welcomes consultation on road user charge
proposals
- Research and development tax breaks could go further
- ‘Will we, won’t we?’ Euro uncertainty continues to undermine
competitiveness
The SMMT today greeted the Chancellor’s Budget news with some
optimism, but remained adamant that more measures are needed to support an automotive
industry burdened by high taxes and an uncompetitive exchange rate.
Commenting on today’s Budget, SMMT chief executive, Christopher
Macgowan, said, ‘Today’s Budget was, at best, lukewarm for the industry. While
fuel duty freezes and R&D tax credits are to be welcomed, some of the real
issues have been ignored. The impact of a strong pound continues to undermine
the competitiveness of UK manufacturers and threatens to erode the UK supply
base further. We are still waiting to hear how the EU End of Life Vehicles Directive
will be implemented in the UK. All the while, the Treasury continues to rake
in vast sums each year from manufacturers, hauliers, component companies and
drivers.’
He continued, ‘What we want is sustained support from the Chancellor
for the UK automotive sector – support that allows business to develop and grow,
that encourages continued investment into the country and that rewards one of
the biggest manufacturing sectors in the UK.’
Notes to editors:
- The UK motor industry is worth £45 billion a year,
contributes 5.3% to UK GDP and supports around 827,000 jobs. (Source –
Second SMMT annual sustainability report)
- Britains automotive sector raised over £40 billion
for the Chancellor in 2000.
