The IGA has called upon the Government for meaningful relief for the independent garage sector, urging recognition of its essential role in keeping the UK’s motorists safe and their vehicles roadworthy
Despite these repeated calls for targeted support, the IGA has said independent garages once again find themselves overlooked at a time when rising costs continue to escalate across the sector.
Employers now pay 15% rate of National Insurance contributions (NIC) for their employees, up from 13.8%. The threshold at which employers begin paying NIC has also been lowered from £9,100 per year to £5,000 per year, meaning contributions start at a much earlier point in staff salaries.
This comes in addition to increases in the National Minimum Wage and other rising operational costs.
The increase in employer contributions places an additional burden on independent garages already facing significant financial strain. The IGA believes it will not only exacerbate the day-to-day operational challenges they face, but also inevitably restrict opportunities for business growth, investment, and recruitment.
The IGA has highlighted the intense pressure from surging energy bills, equipment prices, and staffing costs, all of which remain unaddressed by policymakers.
Jonathan Douglass, Director of the IGA, said: “The latest increase to National Insurance contributions is yet another blow to independent garages, which have already endured relentless cost hikes with little recognition or relief from Government. These businesses provide essential road safety services to motorists and local communities, yet they continue to be left behind.”
The added financial pressure is said to not only affect the sustainability of these garages but also directly limit their ability to grow, invest in new talent, or modernise operations. The IGA is urging the Government to reconsider its approach to ensure independent garages are not adversely affected by policy which undermines confidence and holds back investment, or worse still, threatens closure.
Douglass concluded: “The IGA continues to advocate for fair treatment and meaningful engagement with the independent garage sector. We urge the Government to work with the IGA to create policies that foster business resilience and growth rather than stifle it.”
