The Retail Motor Industry Federation (RMI) has submitted a letter to the Government highlighting issues it believes need to be tackled in the Budget next week.
Sue Robinson, RMI director, has urged the Chancellor to find more ways of stimulating the economy to boost motor retail sales.
She said: “The Budget must include support for businesses to invest and grow as well as measures for consumers to give them confidence to spend.
“To secure the UK economy the Government desperately needs to improve the employment prospects of consumers, and businesses need to be incentivised by low taxes to retain and take on staff.
“The UK needs to be seen as a low tax environment that encourages business to invest and grow with a simple and straightforward tax regime. This will have both the benefit of helping businesses with tax compliance as well as insuring that tax authorities collect what is due.”
The RMI wants a reduction in corporation tax rates for both small to medium enterprises as well as larger businesses.
The industry body also wants National Insurance and PAYE taxes to be streamlined, is concerned over the complexity of consumer credit licensing and it does not believe the current capital allowance regime is encouraging for the retail sector.
Robinson said: “While the manufacturing of vehicles is a key element of the British economy, not all the vehicles that are produced can be exported, and there is a need for the retail market in the UK to be strong and viable to sell vehicles domestically.
“It is no good making vehicles if we cannot sell them.
“The UK car retail market is a vital part of the national economy and the RMI believes it is essential that the forthcoming Budget is used to the best possible effect.”