BVRLA calls for industry support
The BVRLA has published a report highlight industry reliance on continued government support.
Its report identified three key areas that need continued support: furlough until the end of national restrictions; business rates relief for another year; extended deadlines for repaying deferred VAT and increase flexibility.
Despite being allowed to continue trading during lockdown, the vehicle rental sector has seen its leisure market destroyed by Covid-19 and continued financial support remains vital for many firms’ survival. Particularly those smaller organisations who represent the majority.
In the survey, more than three-quarters (77%) of vehicle hire firms reported a fall in annual sales transactions, with just over a quarter (26%) seeing transactions plummet by more than 50% compared to 2019. The adverse market conditions also led to 70% of rental firms reducing their workforce, many by more than 25%.
BVRLA chief executive Gerry Keaney said: “The vehicle rental sector has continued to make a vital contribution by keeping goods and people moving during this pandemic. At the same time, it has been disproportionately hard hit by restrictions on travel and movement, resulting in a cliff-edge drop-off in the leisure customers that generate around 40% of all UK vehicle hire transactions each year.
“With the vaccination programme underway and the roadmap out of lockdown now laid out, the sector is feeling more confident that the tide will turn in the next six months. Until then, it needs continued support from government.”
