Public sector cuts in the UK need to be targeted cautiously to avoid increasing a downturn in an already weak large bus market said a British motor industry body.
The Society of Motor Manufacturers and Traders (SMMT) issued the warning as the British government wrestles with swingeing cuts in its public sector budgets.
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The SMMT recorded sharp falls in June as the large bus sector saw registrations drop 36%, while coach numbers dropped 22% compared to last year.
“June saw big bus registrations fall as the sector continues in recession, so public spending cuts need to be carefully aimed to avoid weakening already damp demand,” said SMMT chief executive Paul Everitt.
“For firms dependant on UK business the outlook is downbeat. Spring’s seasonal lift in big coaches was from a low base and didn’t last. But at least the 3.5t to 8.5t sector still shows a welcome growth trend.”
Despite the downturn, Everitt nonetheless welcomed the UK government’s recent plan to spend GBP15m (US$22.7m) to help add more than 150 new low carbon buses in English bus fleets.
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