2025 Spring Statement: IMI Response

Budget response

The Institute of the Motor Industry (IMI) supports the government's overarching focus on stability, growth, and reform as outlined in today’s Spring Statement. However, the IMI continues to champion for greater focus on recognition, investment and inclusion for the automotive sector in government strategies and reforms.  

Targeted Automotive Skills Investment: 

The IMI strongly recommends that a portion of the skills funding be ring-fenced for the motor industry to address skills gaps in electric vehicle maintenance, advanced driver assistance systems (ADAS), and alternative fuel technologies.

Recognition of Automotive in Industrial Strategy: 

It calls on government to recognise the automotive sector as a key pillar in its industrial growth strategy and to reflect this in R&D, regulatory reform, and export strategies.

Inclusion in Employment Pathways: 

As the welfare reforms aim to reduce economic inactivity, the IMI advocates for formal partnership opportunities with DWP and the Department for Education to position the automotive sector as an accessible and progressive employment route.  

Clearer Automotive Apprenticeship Funding Plans: 

The government’s plans for apprenticeship reform and investment are welcome but need further clarity. The IMI seeks assurance that automotive apprenticeships will be prioritised within broader vocational education funding strategies.

Support for SME Compliance: 

The IMI urges HM Treasury and HMRC to consult with sector-specific professional bodies when implementing digital tax reforms to ensure small independent automotive businesses are not disproportionately burdened.

Sarah Whiteside Jones, Director of Membership Engagement and Public Affairs commented, “Continued dialogue will be key if we are to continue to support the automotive sector and its skilled workforce, not just for today but for the foreseeable and technologically advanced future. Today’s Spring Statement offers reasons for optimism but there is much to be done. We look forward to working with policymakers, through existing and new channels, to ensure that the automotive sector is at the forefront of skills development, technological innovation, and economic growth.”