Britain’s automotive trade body, Society of Motor Manufacturers and Traders (SMMT), is urging the UK government to back the sector ahead of a major financial announcement concerning the country’s future spending plans.
The UK is today (25 November) releasing its long-awaited spending review, which is expected to see swingeing cuts across many departments, including transport, but which has nonetheless ring-fenced certain priorities such as defence and health.
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The SMMT notes the auto sector is severely affected by exchange rates, higher energy and business costs, while to grow, companies, often SMEs, rely on government-supported funding initiatives.
“So much has already been invested successfully and to pull the rug away now would be a devastating waste,” said SMMT president, Gareth Jones.
“It’s a stark reminder while our industry is a net exporter, the export deficit for parts sits at almost GBP8bn (US$12.1bn). However, with the right support, re-shoring to the UK is possible and with GBP4bn of potential growth, the benefits are worth it.”
“We have shown Britain has what it takes to be a manufacturing powerhouse again. But we can’t do it alone. So we say to government: Create the conditions that allow us to develop the quality products for which we are world-renowned.
“Back us to create the jobs, economic growth and prosperity Britain needs. We have shown we can deliver; work with us to make sure that success continues.”
The British domestic new car market is now the second largest in Europe; manufacturing output is up, with exports leading the growth; employment is at its highest level since 2008; and the sector’s annual economic contribution is, at GBP15.5bn, at a record high, notes the association
