A UK auto lobby group is urging the chancellor to ease access to credit for business and consumers, ahead of next month's Comprehensive Spending Review (CSR).

The Society of Motor Manufacturers and Traders (SMMT) has written to British chancellor George Osborne stressing the importance of the sector to the UK economy.

The CSR is expected to deliver deep cuts to the UK's public finances, but the SMMT has highlighted its concern surrounding R&D policy as well as capital allowance reduction.
"Industry recognises the challenges facing government in reducing national debt while maintaining public services and fully supports plans to see a re-balancing of the economy," said SMMT chief executive Paul Everitt. 
"It is essential government and industry work together to identify priorities for the limited resources that are available. The UK Automotive Council is forging a strong collaborative partnership between industry and government and has established a clear, long-term strategy for the UK automotive sector.

"It seeks to make the UK a leading player in the transition to ultra-low carbon vehicles with particular emphasis on encouraging R&D and rebuilding the UK supply base for current and emerging technologies."
Specific areas for attention identified by SMMT include maintaining the principle of R&D tax credits and providing long-term funding for the Technology Strategy Board (TSB).

The SMMT is also urging the structures which replace Regional Development Agencies are capable of effectively targeting support and resources, such as the Regional Growth Fund towards economic growth sectors.

The body is equally calling for low-carbon initiatives to be sustained "until there is a flourishing early market for these products," while extending incentives to commercial vehicles.