Sue Robinson, the RMI National Franchised Dealers Association director, has welcomed measures in the Chancellor's Autumn Statement which ought to help motor retailers.
She said the news that corporation tax will fall to 21% in April 2014 will be welcomed by businesses across the UK. This is on top of the previous announcement that the small business rate will be cut from 22% to 20%, which will provide much needed relief to businesses and provide many with the opportunity to expand and hire new employees.
She added that the RMI has recently called on Government to increase the personal allowance so the news that personal allowance will increase to £9440 from April 2013 is very much welcomed.
"The RMI supports any initiative that will increase the amount of disposable income available to consumers," Robinson said.
The increase in annual allowance for plants and machinery to £250,000 will help businesses that want to invest in capital items to help develop, update and expand their businesses. However this will only have limited impact for some of the motor retail sector as it will not help promote the sale of fleet vehicles or with the cost of showroom builds, she said.
Finally, investment in roads and the cancellation of the planned 3p rise in fuel duty is hoped to have a positive effect on the vehicle market.