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NFDA Demands Suspension of National Insurance Increases Amid Concerns

Update NFDA Advocates Against Further National Insurance IncreasesThe National Franchised Dealers Association (NFDA) is currently engaged in important discussions at the Labour and Conservative Party conferences, emphasizing the need to halt any further increases in National Insurance Contributions (NICs) introduced in a recent budget. These increases, which came into effect in April 2025, pose significant challenges for UK dealers which the NFDA is striving to address.The Role of National Insurance in the EconomyAccording to Sue Robinson, chief executive of the NFDA, these industry conferences provide a valuable platform for dealers to voice their concerns to policymakers. The automotive retail sector not only plays a crucial role in the national economy—employing over 600,000 people and supporting 12,000 apprentices—but is also pivotal in leading the country’s transition to electric vehicles. However, rising NICs can hinder growth within this essential sector.Key Dealer Concerns on the TableAmong the NFDA's key points of advocacy are:Charging Infrastructure: Advocating for accelerated investment in nationwide EV charging points, which is essential for a growing electric vehicle market.Tax Policy Re-evaluation: Calling for a review of current tax structures including potential inheritance tax reforms which disproportionately impact family-run dealerships.NIC Rises: Strongly opposing any further increases in NICs which would substantially burden employment costs.Apprenticeship Levy Reform: Seeking more flexibility in the use of funds to enhance training programs for emerging automotive professionals.Northern Ireland Trade Clarity: Addressing trade operational barriers that have surfaced due to the Windsor Framework, ensuring seamless operations across borders.The Immediate Need for ActionThe NFDA's active engagement with party leaders and their lobbying efforts underscore the critical nature of National Insurance adjustments in maintaining a robust automotive sector. Each point raised by the NFDA is designed to protect the interests of dealerships and the economy at large, ensuring that as the UK transitions towards electric vehicles, the industry remains sustainable and competitive.A Call for Strategic ReformsAs the automotive industry lobbyists seek to establish an understanding of the substantial investments made by car retailers, they argue for a strategy that supports not only the current market but also its future trajectories. The need for calculated reforms in NICs and other policies is essential to propel the retail automotive sector towards a growth-centric future.It is crucial for all stakeholders in the automotive industry, from dealer principals to policymakers, to consider the profound implications these financial structures have on their sustainability and long-term growth. The NFDA’s initiatives represent a proactive approach to not just survive but thrive amid changing economic landscapes.