The 2010 Budget announced today hasn’t
addressed the key issues affecting the retail motor industry but
only provided “a few positives”, according to the Retail Motor
Industry Federation (RMIF).
The association said that the increase in the
annual investment allowance to £100,000 per year will be an
incentive for businesses to invest in capital equipment, “but has
not been taken far enough for some businesses that make large scale
capital investment, such as truck fleet operators”.
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The association also said that the extension
term for businesses to be able to stage tax payments was “welcome”
and would help cash flow. However, it has been
disappointed with issues that the government hasn’t addressed at
all.
In particular, it was concerned that the
government still intends to go ahead with the first registration
tax on new cars from 1 April 2010.
“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,” RMI director Sue Robinson said.
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By GlobalData
