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BUDGET: RMI dissapointed with lack of measures to help dealers

The Retail Motor Industry Federation (RMI) has expressed concern that key issues affecting the motor industry were not addressed in Alistair Darling’s Budget.

Sue Robinson, RMI director, welcomed the halving of business rates for one year from October and the extension for businesses to stage VAT and other tax payments, but accused the Chancellor of producing a Budget for political gain rather than addressing key issues facing businesses.

Robinson said: “We are concerned the Government is still going ahead with the first registration tax on new cars from April 1.

“The new car market is likely to see some uncertainty with the scrappage scheme coming to an end at the end of March and it would seem extremely bad timing to introduce a tax increase on new vehicles at the same time as an incentive to buy is removed.”

Robinson also said the proposed 0.5% increase in employee and employer national insurance contributions from April 2011, would significantly increase employment costs in the sector and is likely to lead to businesses needing to review their staffing numbers.

She said: “We continue to urge the Government to reconsider this increase.

“We are also concerned the Government did not consider a reduction in small business corporation tax to help SMEs during this difficult economic period.”

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