Dylan RobertsonThe Institute of the Motor Industry (IMI) has called on the Government to address the automotive skills gap and reform the Apprenticeship Levy in the 2025 Budget.
The IMI called on the Government to support the automotive industry beyond manufacturing and R&D.
It said that the Apprenticeship Levy does not work for the automotive industry and that there is a lack of skills funding to support the full automotive ecosystem.
The IMI recommended that the Apprenticeship Levy should be made fully flexible, so that employers can invest where they believe it is most needed, including in modular upskilling and safety-critical training, ensuring that the sector can respond to rapid technological change.
Polling, focus groups and labour market data were used to form the IMI’s recommendations.
The IMI has also called for the creation of an Automotive Workforce Transition Fund, to endure the entire automotive workforce is supported, addressing the skills gap.
It also called on the Government to reconsider the changes to the Employee Car Ownership (ECOS) taxation, as the cost increases will impact automotive workers who rely on their vehicles for work.
Nick Connor, CEO at the IMI, said: “Government urgently needs to shift its myopic vision – and fiscal support – of automotive beyond manufacturing and R&D.
“For too long, Government investment in automotive has stopped at the factory gates.
“The people who keep vehicles on the road and consumers safe have been overlooked – yet they are vital to our economy and our net zero ambitions.
“Our message to HM Treasury in our pre-budget submission is clear: reform the Apprenticeship Levy so that it drives growth, invest in the whole automotive workforce, and fund the safety-critical training that protects the public.
“These are not wish lists – they are evidence-based reforms grounded in data and feedback from employers across the UK.”
