Automotive industry reaction to the King’s Speech
See the latest Automotive Industry reaction to the King’s Speech to the Houses of Parliament on 17th July 2024, keep returning to this post as we will continually update it as reactions come in.
Stuart James, CEO of the Independent Garage Association, said:
“We welcome the government’s focus on economic stability and its recognition of the important role that small and medium-sized enterprises (SMEs) such as Independent Garages play in the UK economy.”
“The creation of Skills England and the reforms to the apprenticeship levy are particularly important for our sector. We are eager to continue our discussions with the new government, hoping to advance positive changes and support for our industry.”
"The Employment Rights Bill’s plans to ban exploitative practices and enhance employment rights are significant. The Independent Garage Association is ready to work with the government to ensure these measures effectively support both employers and employees in our sector. Together, we can create a thriving environment where independent garages continue to grow and contribute to the wealth and stability of communities across the UK.”
Kevin Finn, Executive Chair of the IMI said:
“Whilst there were no specific mentions of automotive in the King’s Speech, we are pleased to see the focus on skills with the proposed creation of Skills England, bringing together government, businesses, unions and training providers. With 21,000 vacancies and critical skill gaps in EVs and ADAS, urgent support is needed to maintain road safety and meet government goals.
“The IMI will also represent the views of the automotive workforce and employers as the Apprenticeship Levy is reformed with a Growth and Skills Levy. It is hoped this will give businesses the flexibility they need to spend their levy funds to deliver apprenticeship programmes as well as access modular training to equip existing staff with future-proofed skills. Currently, the automotive training workforce is severely under-resourced, and the pipeline of new talent is not being adequately filled by new apprenticeships.
“The government has clearly indicated its intent to work with business as well as create a Council of Nations to secure economic growth across the country. The IMI will therefore, work with the relevant ministers and departments to represent the automotive sector to ensure UK automotive remains a global leader.”
Easy2Recruit CEO and founder Ambi Singh also warned that it is businesses in the automotive sector themselves that need to take action to boost recruitment:
The Skills England Bill was announced in the King’s Speech in Parliament yesterday, with the intention of bring together businesses, providers, unions and other stakeholders to boost skills training and tackle skills shortages in a new Skills England body, replacing the existing Institute For Apprenticeships and Technical Education (IFATE). The Apprenticeship Levy is also set to be reformed.
“Government action is more than needed on apprenticeships,” said Ambi Singh, “which is one of the main reasons why the sector is facing a recruitment black hole as we approach 2030. Garages must also play their part though.”
Apprenticeship take-up in the automotive sector remains sluggish. According to figures from the Institute of the Motor Industry (IMI), there were 5,500 automotive apprenticeship starts in the first six months of the academic year 2023/24, 6% lower than during the previous year. However, this was 8% higher than in the same period in 2021/22.
While funding and support have been made available, garages are still holding back on this traditional training format. “I understand why independent garages remain hesitant on apprenticeships,” said Ambi. “Taking on an apprentice is a long-term investment. There also needs to be oversight; an apprentice isn’t going to be working independently for a number of years. Then there is the added cost of the salary.”
Advancements in technology are also having an impact. More figures from the IMI point towards 21,000 vacancies and serious skill shortages specifically around EVs and ADAS. “With the rise of EVs,” said Ambi, “and the added challenges presented by technology such as ADAS, the sector needs to increase the number of staff coming through. Apprenticeships are a great way to train future staff. Young people learn on-the-job, and this enables garages to mentor and grow future technicians in the way they want.”
Increasing apprentice numbers will benefit the whole industry, as well as individual garages, but it will take time to bring these technicians through. In the meantime, garages still need to make sure they have enough staff on a day-to-day basis.
This is why Easy2Recruit has been helping automotive businesses access skilled workers from the United Arab Emirates (UAE) and India. “We deal with the relocation from overseas all the way to the garage in the UK,” said Ambi. “The owner of the garage just has to undertake a video interview with the candidate. We handle all the pastoral care for the overseas worker, including visa application, flight booking and accommodation. Ultimately, we prepare the route for the first day at work.”