The National Franchised Dealers Association (NFDA) is calling on the Chancellor to use the 28 October Budget to reduce costs facing franchised car dealers and support further investment across automotive retail.
Its 2026 Budget submission seeks changes to business rates, employment costs, skills funding, electric vehicle charging and the proposed mileage-based eVED system.
The association, which represents 80% of the UK’s franchised dealer network, said dealerships need a more supportive tax and regulatory environment as they contend with rising operating costs and the investment required by the EV transition.
Tax and employment cost demands
NFDA wants a single business rates multiplier for the retail, hospitality and leisure sectors alongside reform of inheritance tax.
It is also urging the Government not to increase employer National Insurance or the National Minimum Wage further, warning that additional employment costs could affect recruitment and staffing levels across dealerships.
The submission calls for easier access to Growth and Skills Levy funding, with less bureaucracy preventing employers from using the funding for training.
NFDA chief executive Sue Robinson said: “Dealers are already feeling the impact of changes to Employer National Insurance, and we are calling on Government to avoid further increases that would add to costs and impact employment. We are also calling for business rates reform, with one multiplier for retail, hospitality and leisure.”
EV charging and eVED reform
NFDA is seeking additional investment in the UK’s charging network, particularly in rural areas where infrastructure remains less developed.
It also wants the Treasury to address the difference between the 20% VAT charged on public EV charging and the 5% rate paid by drivers charging at home.
The association has opposed the proposed mileage-based eVED system and believes a fixed annual charge would be simpler to administer.
Robinson said: “The transition to electric vehicles needs further support. The difference between 20% VAT on public charging and 5% at home creates an additional barrier for drivers without access to a driveway. We are calling for this to be addressed and believe a fixed annual eVED charge would be simpler than the proposed mileage-based system.”
NFDA also used its submission to renew its call for the ZEV Mandate to be adjusted in line with consumer demand and prevailing market conditions.
Robinson added: “The ZEV Mandate must reflect market conditions and consumer demand. Current targets are placing increasing pressure on manufacturers and retailers and Government must ensure the Mandate is realistic, achievable and commercially sustainable.”
Automotive retail supports around 600,000 jobs and NFDA said it would continue raising its proposals with the Government ahead of the Budget.
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