Industry welcomes Sunak’s spending review

The automotive industry has responded positively to the government’s spending review.

Chancellor Rishi Sunak announced a new £4.6bn package to help people back to work, £1.6bn for the Kickstart scheme to subsidise jobs for young people, and further commitments to support the development of EV infrastructure.

Mike Hawes, SMMT chief executive, said: “The additional £3.6bn to safeguard and create jobs is to be heralded, and ‘building back better’ means planning for long-term job security beyond the immediate Covid crisis.

“With welcome initial funding for a significant rollout of electric buses, vehicle charging points and consumer incentives, the Chancellor has rightly recognised that the Road to Zero is a long-term aspiration. Likewise, delivering a green industrial revolution for all will need a long-term investment plan, so we look forward to working with government on its Industrial Strategy refresh early next year.

“UK automotive can help every region across Britain to level up – but this hinges on keeping auto retail open in any future lockdown scenario, securing a tariff-free trade deal with the EU, and delivering on the scale of investment needed to achieve net-zero ambitions. Together, these will result in far greater long-term prosperity and security than today’s announcements alone.”

Meanwhile, BVRLA chief executive Gerry Keaney said: “Amidst some very sobering news on UK national debt, unemployment and economic growth, it is reassuring to see that the government is still willing to invest billions of pounds in supporting the transition to zero emission road transport.

“We are now working to a far more aggressive ICE vehicle phase-out target, so it was also great to see the government focussing on some of the key challenges outlined in the BVRLA’s recent Road to Zero Card – particularly the requirement to invest in grid infrastructure ahead of demand and the need to help SMEs and leaseholders.”