Autotech Group Statement on the Autumn Budget

Autotech Group welcomes the Government’s recognition of the need to reform the UK’s skills system, and the transition to a more flexible Growth and Skills Levy represents a step in the right direction. Working across the automotive aftermarket to train technicians, support newly qualified talent into employment and help businesses address persistent skills shortages, we see the impact that effective, accessible training has on both industry capability and public safety. A more adaptable levy has the potential to unlock employer-led investment in skills, provided it reaches the businesses most in need.

The IMI has highlighted the urgency of creating a skills framework that enables modular learning and supports safety-critical training, particularly as vehicle technology evolves rapidly in areas such as electric powertrains, ADAS and connected systems. While the reforms announced today gesture towards greater flexibility, they stop short of providing the targeted measures the aftermarket requires. The lack of ring-fenced support for automotive training and the absence of a clear commitment to EV-technician development remain significant gaps.

This challenge is heightened by the introduction of a future pay-per-mile tax on electric vehicles. Although near-term incentives for EV purchase remain, the longer-term tax signal risks dampening adoption at a key moment in the transition, which in turn could affect the pace at which the aftermarket prepares its workforce.

Alongside skills, the sector also faces growing demands for digital capability. Modern vehicles require advanced diagnostics, software-driven maintenance and real-time technical support. While the Budget does not introduce major new programmes specifically to accelerate automation or digital-tool adoption in the automotive aftermarket, the continued existence and planned expansion of initiatives such as the Made Smarter programme may offer a pathway for SMEs, specifically independent workshops and garages, to access guidance and support for modernisation. Whether these measures reach the aftermarket effectively will depend on implementation, accessibility for smaller firms and broader economic conditions, particularly around cost pressures and regulatory requirements.

In this context, digital-support solutions such as those offered through Autotech Connect play an increasingly important role in helping workshops integrate new technologies, improve diagnostic accuracy and adapt to the complexity of modern vehicle systems. Such tools cannot replace the need for investment in people, but they can complement training and help businesses remain operational and safe while the sector works to close its skills gap.

Autotech Group will continue to contribute to this effort through training, workforce support and collaboration with industry partners. We encourage the Government to build on the foundations set out in today’s Budget by ensuring that future levy flexibility genuinely supports the development of skills needed in today’s, and the future, aftermarket. Only with a coordinated approach will the UK’s garages and workshops be equipped to keep pace with accelerating technological change and maintain the high standards that drivers and communities rely on.