The Institute of the Motor Industry (IMI) has submitted its formal representation to HM Treasury ahead of the Autumn Budget on 28th October 2026, warning that acute technician shortages, an ageing vehicle parc, and accelerating vehicle technology threaten UK road safety without immediate, targeted skills investment.
Outlining the submission, IMI Chief Executive Nick Connor pointed to an unsustainable gap between government net-zero targets and the practical capacity of the technical workforce tasked with keeping modern vehicles roadworthy.
“There is a growing mismatch between policy ambition, technological change, and workforce capacity,” said Nick. “Without targeted investment, these pressures will constrain productivity, slow technology adoption, and increase risks for employers and consumers alike. This Autumn’s Budget provides a real opportunity to address these challenges through targeted investment in workforce supply, skills development, and safety-critical competence.”
Unlocking levy funds for bite-sized training
A central demand in the IMI’s submission is an overhaul of the Growth & Skills Levy to make funding accessible to independent workshops.
Small business proprietors have long struggled with rigid funding structures that favour multi-year academic programmes over the agile training workshops actually require.
The IMI is calling on the Chancellor to:
Allow modular and short-course funding: Grant employers the flexibility to allocate levy spending toward modular, bite-sized technical courses rather than full qualifications alone, allowing technicians to upskill without prolonged time away from the ramp.
Incentivise emerging tech: Introduce direct funding incentives to accelerate training in high-voltage drivetrains, ADAS calibration, and connected vehicle architectures.
Redirect unspent funds: Ring-fence unallocated levy funds to support sectors, like automotive repair and maintenance, currently experiencing acute skills gaps.
Dedicated funding and TechSafe backing
To safeguard independent repair capacity, the body is also urging HM Treasury to establish an Automotive Workforce Investment Fund.
Geared specifically toward SMEs, the fund would provide grants and matched funding for technician upskilling, apprentice retention, and bodyshop technician development.
Additionally, the IMI wants government-backed training programmes to formally recognise established competence benchmarks, specifically IMI TechSafe, across high-voltage, connected, and automated vehicle systems.
Rather than creating fresh red tape, Connor argued that the government should leverage frameworks the trade is already using: “As vehicle technologies become increasingly complex, this should be accompanied by proportionate, risk-based assurance in areas where competence has a direct bearing on safety.
“However, the IMI supports the Chancellor’s ambition to reduce unnecessary regulatory and administrative burdens on business.
“Rather than creating new regulatory bureaucracy, government should make greater use of established frameworks to demonstrate competence in high-voltage, automated, connected, and alternative fuel vehicle technologies.”
With the Autumn Budget set for 28th October, the submission puts pressure on the Treasury to recognise that decarbonisation and road safety policies cannot succeed without a funded pipeline of technicians and apprentices on the shop floor.
