Independent garages were hoping today’s Autumn Budget would deliver meaningful, targeted support.
While the Chancellor’s decision to fully fund apprenticeships for under-25s in SMEs has been widely welcomed, the Independent Garage Association (IGA) says the rest of the Budget falls short of what the sector urgently needs.
The apprenticeship announcement is a positive step for workshops trying to attract new talent and invest in future skills.
For many garage owners, the cost of bringing apprentices into the business is a significant barrier, and free training for under-25s will ease some of that pressure.
But beyond this, the IGA says there is little in the Budget that helps independent garages manage the rising costs and increasing complexity they face daily.
Concerns have also been raised about the government’s mixed messaging around electric vehicle policy.
Although further investment in EV infrastructure and adoption is welcome, the introduction of a pay-per-mile tax for electric vehicles has caused frustration across the sector.
The IGA warns that this kind of policy shift risks undermining consumer confidence and adds another layer of uncertainty for garages preparing for an electric future.
Clear, consistent long-term policy remains essential, something today’s announcements do not deliver.
Financial pressure is another area where the Budget offers no real relief.
A 2% increase in tax on landlords’ dividends and savings could impact garage owners who draw income via dividends, as well as those renting premises where additional costs may be passed down.
With many workshops already working hard to maintain stable cashflow, these changes add to an already difficult environment.
While not all garages employ staff at National Minimum Wage levels, the rise will have wider effects.
Higher staffing costs across supply chains, increased parts and logistics charges, and continued rises in energy, insurance and equipment expenses all contribute to tightening margins at a time when garages are already absorbing significant operational costs.
Jonathan Douglass, Director of the IGA, summed up the sector’s reaction: “While the commitment to making under-25 apprenticeships free for SMEs is a step in the right direction, the rest of the Budget feels ambiguous and offers little real-world support for independent garages.
“The negative impact of EV pay-per-mile proposals, rising operational costs, and higher taxes on savings and dividends create yet more challenges. The government must commit to clearer, more supportive measures.”
The IGA is continuing to analyse the full details of the Budget and says it will keep working with the government to push for practical, targeted policies that recognise the vital role of independent garages within the UK automotive ecosystem.
For now, however, many workshops will see today’s announcements as another missed opportunity to give the sector the clarity and stability it needs to plan, invest and thrive.
Garage Matters Analysis
What’s clear from this Budget is the widening gap between policy ambition and workshop reality.
Independent garages are being asked to prepare for a fast-changing automotive landscape, electrification, new regulations, shifting tax structures, yet the financial and strategic support needed to make that transition workable simply isn’t materialising.
The apprenticeship funding is a bright spot, but it raises an important question: will garages have the breathing room, cashflow and long-term confidence needed to train and retain those young people once they’re through the door?
The EV pay-per-mile proposal highlights a deeper issue: the sector is still being left to plan investment in tools, training and infrastructure without a stable policy framework. Garages cannot commit to new technology when government direction moves this frequently.
Cost pressure remains the defining challenge for most workshops, and this Budget does little to alter that trajectory. Margins are being squeezed from all sides—labour, premises, tax policy, supply chains—making long-term planning harder for even the most forward-thinking garages.
For independent garages, the takeaway is caution. Not panic, not retreat, just careful decision-making, tight cost control, and a close eye on how these policies evolve in the months ahead.
Comment below and help us build a clear picture of how the Budget will impact independent garages across the UK.
