Autumn Budget Statement: IMI Response

The IMI is delighted that the Chancellor has, today, acknowledged the importance of automotive in the industrial strategy with a £2bn commitment for the sector, supporting the growth of the electric vehicle parc. The IMI believes it is critical that a share of this commitment is allocated to training and continuous professional development for those working both inside and outside the factory gates, alongside manufacturing infrastructure.

The professional body for people in automotive also welcomes the government’s commitment to further education with a £300 million increase in funding and the increase in Employment Allowance – to £10,500 – for the smallest employers.

The IMI is however, disappointed by the much-rumoured increase in employer NI contributions from April 2025, combined with a reduction in the secondary threshold to £5,000 pa. These changes are likely to have a significant impact on costs for small businesses that operate in the automotive sector, which is already facing a skills gap of 20,000+ vacancies.

These additional costs are likely to dampen investment in training and continuous professional development and impact the ability of the sector to be ready to support the governments decarbonisation targets.

The IMI will continue to provide its members with a voice and represent their interests with government.

It will also be responding to the government’s Industrial Strategy green paper: Invest 2035: The UK’s Modern Industrial Strategy and is urging its members to have their say in a forthcoming webinar.