IGA News

IGA calls on Government to provide ongoing financial support for independent garages

IGA calls on Government to provide ongoing financial support for independent garages

24 August 2021

The Independent Garage Association (IGA) has written to the Chancellor of the Exchequer, the Transport Secretary and other Ministers, urging them to put a financial support package in place for garages over the next five years.

Stuart James, IGA Chief Executive states: “While we understand that implementing the six-month MOT extension in March 2020 was necessary to keep people safe throughout the pandemic, it is now causing sharp rises and falls in the demand for MOT tests throughout the year. Despite the overall number of MOT tests remaining the same, this change has left many garage businesses struggling to survive.

“According to data from the DVSA, the number of vehicles due their MOT test in March 2021 decreased by an average of 43% compared to a typical year, and decreased even further to 71% in April 2021. The Government’s flexible furlough scheme was a lifeline to countless garages during this time, as it allowed them to remain open at a reduced capacity while retaining their employees.

“However, at this moment in time, garages are facing the opposite problem; while demand for MOTs will rise by 16% this September and 29% in October, a vast majority of garages are unable to increase their capacity due to the cost, space and staff that would be required to add additional MOT bays. This means they are losing their market share at this now critical time of the year.

“We believe this will have a detrimental impact on vehicle owners that need to have their cars MOT’d, as well as garage businesses, for at least the next five years. An ongoing financial support package for the sector, such as continued access to the flexible furlough scheme, business rate relief scheme, or access to an alternative grant will provide the level of support that is needed.

“This support is essential to enable garages to stay in business and provide continued employment for their staff. Local, independent garages are vital to the mobility of the UK and it is essential they receive the help they need to ensure that vehicle safety is maintained for all road users.”

ENDS

NOTES TO EDITORS

Gemma Stannard
IGA Communications Manager

Tel: 07721 126 758
Email: gemma.stannard@rmif.co.uk