Not enough for Motor Industry in Budget, says SMMT

17 April 2002 #SMMT News

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


  • Research and development tax breaks could go further
  • ‘Will we, won’t we?’ Euro uncertainty continues to undermine


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


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:

  1. 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)

  2. Britains automotive sector raised over £40 billion

    for the Chancellor in 2000.

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