SMMT calls for rescue package to protect jobs
The Society of Motor Manufacturers and Traders (SMMT) has urged the government to put together an automotive rescue package after its own survey found that one is six jobs in the sector are at risk.
More than 6,000 UK automotive job cuts have been announced in June, a result of global lockdowns, closed markets and shuttered plants.
SMMT is now calling on government to address this with a support package for the entire sector to help drive demand and ease cash flow. Measures including unfettered access to emergency funding, permanent short-time working, business rate holidays, VAT cuts and policies that boost consumer confidence would accelerate a sustainable restart for the market and manufacturing – a prerequisite to the recovery phase, and to unlocking the investment needed to drive a green future for the UK.
Mike Hawes, SMMT chief executive, said: “UK Automotive is fundamentally strong. However, the prolonged shutdown has squeezed liquidity and the pressures are becoming more acute as expenditure resumes before invoices are paid. A third of our workforce remains furloughed, and we want those staff coming back to work, not into redundancy.
“Government’s intervention has been unprecedented. But the job isn’t done yet. Just as we have seen in other countries, we need a package of support to restart; to build demand, volumes and growth, and keep the UK at the forefront of the global automotive industry to drive long-term investment, innovation and economic growth. Support delivered now is an investment in the future of one of Britain’s most valuable assets… investment that we will repay many times over.”
