Croxdale Group has committed to absorbing an additional £150,000 in annual costs to retain its workforce and drive expansion by introducing new brands in Durham despite mounting financial pressures facing the industry.
With rising household and business expenses set to take effect from April 1, alongside key announcements in the Spring Statement, the automotive industry faces challenges.
However, family-owned Croxdale said it remains committed to investment and growth, choosing to absorb the costs associated with the Living Wage increase and National Insurance contributions while other businesses may resort to cost-cutting measures.
“There will be an increase on April 1 to National Insurance contributions and the Living Wage, which will impact our business in the same way as others,” said managing director Anthony Rockingham.
“Some companies are already holding back on their growth plans and even making redundancies, but we are planning to absorb the cost and keep all our people, even though it’s going to cost us about £150,000 extra per year.
“Businesses like ours are striving to grow and improve, but workforce costs are becoming increasingly significant.
“That’s why we’ve recently introduced new brands like Leapmotor, Jeep, and Alfa Romeo to broaden our appeal and give everyone more options in one place.”
The dealership also represents Citroën, DS Automobiles and MG and Rockingham says that maintaining high service standards remains a priority, reinforcing the importance of retaining a skilled workforce amid economic uncertainties.
“Some businesses are cutting back on staff, but we know that customer expectations on our performance will not change, so we need to retain talented people to help us serve our customers to the high standards they are accustomed to,” he said.
“We’ve recently taken on more staff and we’ve seen an increase in applications from people wanting to come and work for us.
“I believe they want to be part of our growth plans, but the increase in applications also reflects the fact there are fewer jobs around as businesses tighten their belts. Where you couldn’t find talent before, there is now a bigger pool of people.”
The end of electric vehicle (EV) tax exemptions from April 1, along with the extension of the fuel duty freeze until March 2026, could also impact consumer car-buying choices which is why Rockingham highlights the importance of offering a diverse selection of both internal combustion engine (ICE) and electric vehicles during this economically uncertain period.
“Whether you want to downgrade, upgrade, choose an electric vehicle to reduce fuel costs or have an ICE vehicle and benefit from the freeze on fuel duty, we have a wide range of vehicles to suit all needs,” he explained.
However, Rockingham also pointed out that one in five new cars sold is through the Motability scheme. While the Chancellor has allocated £1bn to support claimants seeking employment, the Spring Budget also includes a £3.4bn reduction in welfare spending.
Measures such as a 50% cut in health-related entitlements under Universal Credit and a freeze in Personal Independence Payments (PIP) eligibility could impact both the industry and broader economy.
“The Government’s efforts on tackling the cost of benefits will have an impact on the new car market, so the economy will be adversely affected in one way or another by the decision to squeeze the expenditure limits of people who currently receive the mobility component of Personal Independence Payments (PIP),” he said.
“No doubt this will also impact on other significant spending decisions, such as home improvements, so other areas of the economy will also suffer.
“However, overall as a business, we remain confident that the recent investments we have made, both in terms of the new car brands introduced and staff employment and retention, will bear fruit for the business over the longer term.”
Pictured: Croxdale Group’s senior leadership team. Anthony Rockingham is fourth from left.