The Institute of the Motor Industry (IMI) has sounded the alarm on the state of the UK’s automotive workforce outside factory gates, calling for urgent government investment to protect public safety, support the net zero transition, and safeguard the sector’s economic contribution.
“For too long, government investment in automotive has stopped at the factory gates,” said IMI CEO Nick Connor. “The people who keep vehicles on the road and consumers safe have been overlooked – yet they are vital to our economy and our net zero ambitions.”
Drawing on data from employers, SMEs, and the IMI’s own labour market research, the pre-budget submission to HM Treasury highlights a precarious state of skills across the aftermarket.
The findings are clear: the Apprenticeship Levy does not work for automotive, there is limited follow-through for new motoring technology, and current skills funding fails to support the full workforce keeping vehicles on the road.
IMI recomendations
1. Apprenticeship and levy reform: Make the Levy flexible so employers can invest in apprenticeships, modular upskilling, and safety-critical training. Reduce administrative barriers for SMEs and unlock private investment to boost productivity.
2. Investment in the entire automotive workforce: Establish an Automotive Workforce Transition Fund to support technicians, assessors, leadership, diagnostics, logistics, and customer-facing roles. Ensure Skills England and devolved budgets fund training for all roles critical to economic growth and the green transition.
3. Safety and competence standards: Co-invest in training aligned with the IMI TechSafe standard, covering electric, hydrogen, and ADAS technologies. Embed TechSafe within skills funding, MOT reform, and procurement to maintain consistent national safety standards.
The IMI also urged government to reassess recent Employer Car Ownership Scheme (ECOS) tax changes, noting a current skills gap of 14,000 technicians and assessors. Ensuring workforce mobility is critical to keeping automotive careers viable.
Connor concludes: “Our message to HM Treasury is simple: reform the Apprenticeship Levy, invest in the full automotive workforce, and fund safety-critical training.
“These are evidence-based reforms that protect consumers, empower employers, and secure a future-ready workforce.”
For independent garages, the IMI’s submission highlights an urgent opportunity: engaging with apprenticeships, skills programmes, and workforce development now will help workshops attract talent, stay ahead of technological change, and strengthen their role in the UK’s automotive ecosystem.
Have your say: With apprenticeships, training, and new technologies in the spotlight, what’s your workshop doing to stay ahead? Tell us in the comments below…
