UK Spring Statement 2025: Tyre industry left waiting for sector-specific support
The UK Spring Statement 2025, delivered by Chancellor Rachel Reeves on 26 March, placed economic growth, planning reforms and national security at the heart of the government’s fiscal agenda. But the announcement did little to address the challenges facing the automotive sector, including tyre retailers and independent garages.
While the Chancellor pledged £13 billion in new capital investment and highlighted planning reforms projected to add £6.8 billion to the UK economy by 2029-30, there were no measures specifically targeting the automotive aftermarket.
For the tyre trade and garage sector, the absence of direct support is likely to mean continued economic pressure, particularly at a time when many businesses face skills shortages, rising costs and regulatory challenges.
Industry bodies reacted swiftly to the statement. The Institute of the Motor Industry (IMI) urged the government to recognise the automotive sector’s contribution to the economy and called for targeted skills investment. The IMI said it wants to see the automotive workforce included in the government’s wider industrial strategy.
The Society of Motor Manufacturers and Traders (SMMT) also expressed concern. In a statement, the SMMT said the Spring Statement “did nothing to alleviate pressure on manufacturers” and confirmed that additional fiscal measures may discourage consumer investment.
Unite, the trade union, went further, warning that thousands of jobs in the UK automotive industry are at risk without meaningful government action.
The Spring Statement’s focus on stability and growth included:
▪ A £13 billion increase in capital investment.
▪ Planning reforms forecast to deliver £6.8 billion economic boost by 2029-30, increasing to £15.1 billion within ten years.
▪ A £2.2 billion rise in the defence budget for 2025-26.
There was no mention of changes to Vehicle Excise Duty (VED) for electric vehicles or employer National Insurance Contributions (NICs).
While broader economic measures may indirectly support consumer confidence and spending, the automotive industry has made clear it was expecting more.
The Spring Statement follows repeated calls from trade groups to prioritise skills development, reduce business costs and encourage electric vehicle adoption , areas the statement largely overlooked.
As tyre retailers and garages continue to face uncertainty, many in the sector will be hoping the upcoming Autumn Budget delivers clearer support.
Did the Spring Statement include specific measures for tyre retailers or garages?
No. The statement focused on economic growth, planning reforms and national security, with no direct announcements for the automotive aftermarket.
What investments were announced?
▪ £13 billion in new capital investment.
▪ £6.8 billion economic boost expected from planning reforms by 2029-30.
▪ Defence budget increase of £2.2 billion.
How has the automotive industry reacted?
▪ The IMI called for more focus on skills and industrial strategy.
▪ The SMMT said the statement did nothing to ease pressure on manufacturers.
▪ Unite warned thousands of automotive jobs remain at risk.
Were there changes to Vehicle Excise Duty (VED) or National Insurance Contributions (NICs)?
No changes to VED for electric vehicles or NICs were mentioned.
Will the statement impact tyre businesses?
Indirectly. Broader economic growth measures may support consumer spending, but the tyre trade’s specific concerns were not addressed.
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