John Leech Head Of Automotive for KPMG UK Comments On The Autumn Statement
“The automotive sector will be pleased to hear that the Government plans to review business rates. This is a tax that is not linked to ability to pay and is much higher than equivalent taxes in other EU countries. For the automotive industry it discourages investment in the UK and it’s expensive too – currently the business rates impose a 48% tax on the increase in rateable value estimated from investment in property, plant and equipment. The reform of business rates will boost investment by automotive companies and therefore help to rebalance the economy, but it needs to be implemented quickly to capitalise on the favourable investment climate. The automotive sector will also welcome scrapping national insurance contributions on apprentices aged under 25 years which should help to boost youth employment and the development of skills in the industry.”
