In today's press release, the European Commission announced that it would soon publish the newly updated Motor Vehicle Block Exemption Regulation and its Supplementary Guidelines which will come into force on 1 June next. 

The Commission has adopted a five-year prolongation period meaning that it will be applicable until 31 May 2028. During this period, the Commission will evaluate more closely the market developments and fundamental legislative changes might be needed after this period.

CECRA, which participated in the open consultations in 2021 and 2022, welcomes the prolongation of this sector specific Regulation and will now start to analyse it in-depth as soon as all the documents are available. But according to the press release it seems that the changes have focused on the issue of in-vehicle data and at first sight, it looks promising.

The updated Supplementary Guidelines stipulates that:

Clarify that data generated by vehicle sensors may be an essential input for the provision of repair and maintenance services. Therefore, to comply with Art. 101 of the Treaty on the Functioning of the European Union (‘TFEU'), authorised and independent repairers should have access to such data on an equal footing. The existing principles for the provision of technical information, tools and training necessary for the repair and maintenance services have been extended to explicitly cover vehicle-generated data.

Specify that vehicle suppliers must apply the proportionality principle when considering whether to withhold inputs, such as vehicle-generated data, on the basis of potential cybersecurity concerns.

Warn that Art. 102 TFEU may be applicable where a supplier unilaterally withholds from independent operators an essential input, such as vehicle-generated data. 

CECRA however remarks that authorised repairers continue to be the benchmark of what independent operators might receive as data. The inclusion of the proportionality principle and the reference to Art. 102 might be some good news. This needs to be analysed. 

European Commission's Press release announcing the prolongation of the Motor Vehicle Block Exemption (‘MVBER’) with 5 years and the update of its Supplementary Guidelines.


www.cecra.eu

Update from DVSA:

We wanted to say a big thank you to everyone who completed their annual assessment on time this year.

We've seen even more testers plan ahead and complete their training and assessment well ahead of the deadline.

Keeping on top of things

Regular training improves testing standards and consistency across the industry. It means you can keep on testing Great Britain's motorcycles, cars and vans and make sure they are safe to drive.

Changes to training hours

We issued an MOT special notice 02-23 this weekend with some changes to training for this coming year (2023 to 2024).

This special notice tells you about:

• changes to annual training hours from 1 April 2023
• updates to the MOT testing guide for test stations from 3 April 2023

British car manufacturing output rises 13.1% in February to 69,707 units. Volumes up for both home and overseas markets but exports drive overall uplift. Hybrid, plug-in hybrid and battery electric vehicle output surges again, up 72.2%, accounting for two in five cars produced in the month. New SMMT member survey finds nine in 10 firms want measures to deliver low cost, low carbon energy to help support transition to zero emission technologies. Thursday 30 March, 2023 UK car production rose 13.1% in February, up to 69,707 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). Factories made an additional 8,050 cars, with volumes buoyed by an easing of supply chain shortages – notably of semiconductors – which have bedevilled the global industry since the early months of 2021. Production for both home and overseas markets rose by double digits, up 20.3% and 11.5% respectively, with exports driving the overall uplift. 56,634 cars were produced to fulfil global orders, up from 50,786 a year before and accounting for 81.2% of output, with the majority of these exports (59.6%) heading into the UK’s largest trading partner, the EU. Shipments to the EU rose 6.5%, helping to offset declines to the US (-19.9%) and China (-21.6%), providing further evidence of the need for continued free trade across the Channel. Exports to Turkey, Japan, Australia and South Korea, meanwhile, also rose, collectively by 85.0%, and together represented a total of 6,498 cars, or 11.5% of exports. The UK’s automotive industrial transition to hybrid, plug-in hybrid and battery electric vehicles continued, with combined volumes surging 72.2% from 15,905 to a total of 27,392 units and accounting for two in five (39.3%) cars produced in the month. Ramping up output of these vehicles still further is crucial, and a new SMMT member survey reveals that nine in 10 firms want measures to deliver low carbon and cost-effective energy supply, to help support the transition to zero emission technologies.1 While automotive businesses are broadly optimistic about the next 12 months, more than eight in 10 report that input and employment costs have risen in the past three months, so action to alleviate cripplingly high and uncompetitive energy costs ranks as their number one concern. Support on business rates, easing supply shortages and access to trade are also all viewed as beneficial for growth. Mike Hawes, SMMT Chief Executive, said, “February’s growth in UK car production signposts an industry on the road to recovery. The fundamentals of the sector are strong; a highly skilled workforce, engineering excellence, a sector that is embracing new electrified vehicle manufacturing and wide ranging capabilities in the EV supply chain. To take advantage of global opportunities, however, we must scale up at pace and make the UK the most attractive destination for automotive investment by addressing trading and fiscal costs and delivering low carbon, affordable energy.”

We are delighted to announce the appointment of Eddie Thomson as Vice President of the SMTA. Eddie, who is Head of Business Development at Adesa UK, will become the 76^th President of the association on the 17^th of May at the Annual General Meeting.

Sandy Burgess, Chief Executive of the SMTA, commented “Eddie has held a number of very high-profile positions within the remarketing sector and as such is a well-known and respected member of the automotive community across the UK. I look forward to working with Eddie and drawing on his extensive remarketing knowledge and experience for the good of our membership and the sector in Scotland.”

Graham Greenwood, the current SMTA President added “Since joining the SMTA’s Board of Directors, Eddie has made many positive contributions to benefit the association and I am therefore very pleased to announce that he has accepted the position of Vice President.

Eddie brings with him a huge amount of experience in the Remarketing Industry at a senior level, this knowledge is most helpful to the SMTA board and all its members as the sector continues to evolve.”

Brussels, 06/02/2023

As European industry, including fuel and automotive suppliers, vehicle manufacturers, dealers, repairers and transport operators we eagerly anticipate the European Commission proposal on the revision of the CO₂ Regulation for Heavy-Duty Vehicles (HDVs). Heavy-Duty transport is a vital sector for the functioning of the internal market and a suitable regulatory framework shall support the development of clean vehicles using different technologies and fuels.

Decarbonisation is an immediate challenge and all options that can have a rapid impact need to be enabled. Sustainable and renewable fuels can speed up the process and contribute to achievement of the “Fit for 55” and the full decarbonisation targets in road transport. The signatories of this letter welcome the revision of the CO₂ standards for HDVs in line with the “Fit for 55” objectives and believe that a recognition of all CO₂ emission reduction pathways along the entire value chain is critical.

Transport operators and vehicle manufacturers must be encouraged to consider cleaner fuel alternatives to fossil fuels, immediately available today, including liquid and gaseous renewable and synthetic fuels. Depending on use cases, technology diversity is needed where all technologies, including electrification/hybridisation, hydrogen and sustainable and renewable fuels can play a role.

The undersigned* organisations recommend that sustainable and renewable fuels are considered for compliance in the CO₂ Regulation for HDVs. Including such a provision in the Regulation would support the EU’s Green Deal objectives and accelerate the decarbonisation of the commercial transport sector.

*refer to website for organisations and to read online https://www.cecra.eu/news

• Annual UK car production falls -9.8% to 775,014 units in 2022 as global chip shortages and structural changes depress output.
• Record levels of electrified vehicle production with almost a third of all cars made fully electric or hybrid – worth £10 billion in exports alone.
• Volumes for UK rise 9.4% but fail to offset declining exports, down -14.0%, with some eight in 10 cars shipped overseas.
• Auto sector, which is integral to levelling up, net zero and advancing global Britain, calls for dedicated framework to drive rapid upscaling of UK battery production and shift to EVs.

Thursday 26 January, 2023 UK car production declined -9.8% in 2022 to 775,014 units, according to the latest figures issued today by the Society of Motor Manufacturers and Traders (SMMT). December rounded off a volatile year, with output down -17.9% in the month after growth in October and November, with most of the year’s volume loss occurring in the first half.  

The annual total was 84,561 units down on 2021 and -40.5% off the 1,303,135 cars made in 2019 pre-pandemic, equivalent to a loss of more than half a million cars.¹ The main reasons for the depressed output were the crippling global shortage of semiconductors, which limited the ability to build cars in line with demand; significant structural changes, reflecting a loss of production at two volume manufacturing sites; and the impact of supply chain pauses in China due to Covid lockdowns.

Despite these challenges, UK factories turned out a record 234,066 battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) electric vehicles, with combined volumes up 4.5% year-on-year to represent almost a third (30.2%) of all car production. Total BEV production rose 4.8%, with hybrid volumes up 4.3%, and boosting output of these vehicles will be critical in the attainment of net zero, for both the UK and major overseas markets. 

The figures come as fresh SMMT analysis confirms the increasingly important role of electrified vehicle production to the UK economy, especially the value of exports. Since 2017, the value of BEV, PHEV and HEV exports has risen seven-fold, from £1.3 billion to more than £10 billion. As a result, electrified vehicles represent 44.7% of the value of all UK car exports, up from a mere 4.1%. BEVs, in particular, are critical to the future prosperity of the UK, with their export value up more than 1,500%, from £81.7 million to £1.3 billion.²

The UK’s strength in specialist, luxury and performance car makers was also further underlined, with output climbing 6.6% to 32,575 units, worth an estimated total of £3.7 billion at factory gate prices, driven by a number of new launches and models in high demand from buyers around the world. These manufacturers play an important role in the development of advanced automotive technologies such as light-weighting and electrification which, in turn, can help advance wider industry.

Total annual output for the UK market grew 9.4%, but this was not enough to offset a -14.0% drop in exports. Nearly eight in 10 cars (606,838 units) were built for overseas markets, compared with 168,176 for British buyers, emphasising the importance of free and fair global trade.

The EU remained by far the sector’s largest market, even as shipments declined -10.0%, with 57.6% of exports (349,424 units) heading into the bloc. While exports to the US and China also fell, down -31.6% and -8.3% respectively, the number of cars sent to Japan (+5.7%), South Korea (+32.8%), Australia (+4.7%), Switzerland (+2.7%) and South Africa (+23.0%) all increased, although together these represented just 8.4% of exports. Exports to Russia, a top 10 export market in 2021, meanwhile, fell -78.3%, with shipments made before the outbreak of war in Ukraine and the cessation of business.

www.smmt.co.uk

The Department for Transport has commenced consultation on proposed and potential changes to the MOT Scheme.

The consultation covers many aspects, including but not limited to:

• Changes to the MOT Test
• When the first MOT Test should be carried out
• Frequency of subsequent MOT Tests
• MOT Test Fees

The consultation is open until 01 March 2023 and the final outcome could have a significant effect on your business, whether or not you own or operate an MOT Testing Station. https://bit.ly/3WvIFPO

As you would expect, The Scottish Motor Trade Association will be responding on behalf of our members.  However, we encourage anyone with strong views on this subject to also respond in order to make those views known.

• Grey is UK’s most popular new car colour for fifth consecutive year with 25.7% market share, followed by black and white to complete a monochrome podium.
• Maroon, pink and cream were bottom of the charts, taking just 0.02% of all registrations combined.
• Green enjoys resurgence with biggest volume uplift of +13,293 units while electric vehicles account for a quarter of all new green cars.

Hi-res infographics and tables available on Dropbox:
https://www.dropbox.com/sh/fnxjc67skhvivub/AAC5yXY7_dtDlNjK-n-ZxNuja?dl=0

More than six in 10 (62.5%) new cars hitting British roads in 2022 were painted in grey, black or white. Silver, meanwhile, which held first or second place in car buyers’ affections for 12 straight years from 2000 to 2011, posted just 98,483 units and a 6.1% market share in 2022 – its lowest level in more than two decades. Red, although retaining its fifth-place ranking, also recorded a decline to reach its lowest market share since 2008, at 136,793 units accounting for 8.5% of all cars registered.

At the other end of the spectrum, the least popular shades were maroon, pink, and cream, which, combined, recorded less than 1% of all registrations.2 Pink tinted vehicles tallied their lowest number since 2009, while other niche paints, including orange, yellow, bronze, turquoise and mauve, all posted growth, hinting at a broader trend, although combined, the colours only make up 3.4% of the market at 55,401 units.

Meanwhile, green enjoyed a resurgence in popularity to a level not seen for 16 years, up by 74.2% on 2021 with the largest volume growth of all colours (up 13,293 units).3 Some 31,220 new green cars were registered in total – perhaps fittingly a quarter of which (24.1%) could be plugged-in. Overall though, the top colour for most powertrains remained grey, with just PHEVs opting for black.

Grey was also the top selling colour in every region and every county in the UK, bar the Scottish Borders where blue pushed it into second spot. Red cars proved most popular in Berkshire with 6,735 registrations, while the highest number of green cars was registered in Greater London, at 1,894 units, and Strathclyde registered more orange cars (1,313) than any other county. Cheshire took top spot for turquoise, with 291 units, while pink was most favoured in Derbyshire, although it accounted for just 10 new car registrations in the county, demonstrating how rarely drivers picked the colour.

While grey was the most popular colour in the UK’s three largest segments, superminis, lower mediums and dual purpose, as well as in upper medium and specialist sports, white was the most popular shade for the mini and multi-purpose segments and black was most popular for executive cars and luxury saloons.

www.smmt.co.uk

The Scottish Government has now published the final version of the Hydrogen Action Plan. This sets out the strategic approach and actions required to support the development of the hydrogen economy in Scotland over the course of this Parliament, including a number of transport specific actions:

• Create an environment for the public and private sector to co-design technology and infrastructure pathways for the application of hydrogen in transport, and deliver coincident benefits for jobs and supply chains.
• Help facilitate the rollout of the infrastructure needed for hydrogen vehicles to operate in Scotland. 
• Work collaboratively with the transport sector to drive down the cost of hydrogen in transport applications and encourage uptake of both hydrogen and battery-electric vehicles.
• Make Scotland a global centre of expertise for innovation in hydrogen mobility technologies, collaborate with international partners and grow our hydrogen mobility manufacturing base.
• We will continue to support a growing Scottish skills base in hydrogen for transport.

The Action Plan is supported by a £100m capital funding programme, designed to accelerate the production of renewable hydrogen in Scotland. £10m of this capital funding programme is for Hydrogen Innovation Scheme and the remaining £90m for the Green Hydrogen Fund which will be launched early next year. This investment is aimed at driving Scotland’s hydrogen production capability to meet an ambition of at least 5GW of renewable and low carbon hydrogen by 2030 and 25GW by 2045.

Following a strong start to 2022 and fresh from their second year presenting at Automotive

Management Live, new tech kids on the block Vehicles In Video are continuing to disrupt the motor industry with their video communication technology. This new partnership with automotive web solutions provider Spidersnet allows VIV to expand their network of contacts, and for Spidernset, an opportunity to offer their customers a way to streamline their sales and service processes. The enhancement of digital services is hugely important to businesses whose buyers complete the majority of their purchase journey online. 

The VIV digital app focuses on the customer’s digital experience, allowing for personalised videos to be sent quickly without moving from your desk. The app seamlessly integrates with dealership sales and servicing teams maximising their time and streamlining their services.

“We are privileged to be partnering with such a reputable company as Spidersnet, their

 product portfolio lends itself well to video, which in turn benefits our customers. Having met the team, we are in no doubt our partnership can only strengthen as we move forward delivering a joint approach into the marketplace.” - Matt Maley, CEO, Vehicles in Video.

Spidersnet is an award-winning web service provider catering to every type of dealership. Their digital marketing solutions help to increase brand awareness, website traffic and enquiries. Spidersnet offers their clients website, management and marketing services to strengthen digital presence. From themed or bespoke designs to additional services such as a Service Booking Tool, Automated Video creation and a whole host of additional tools and features through their management system, Autopromotor. This partnership with VIV will further enhance their current product set and give their customers the ability to fulfil customer requests for personalised videos. Collaborating together allows both to provide exceptional customer service and work together to provide the best for the businesses they support. 

“We’re really excited to partner with Vehicles in Video. The innovative video services they provide will be a huge benefit to our network of automotive businesses to help increase enquiries and sales. The team at VIV always go the extra mile for their customers, which is exactly the same ethos we have. It’s a great fit!” 

Katie Balkham, Managing Director, Spidersnet

Interested in knowing more about how Vehicles in Video can help your business? Book a demo to receive a free digital health check: https://www.vehiclesinvideo.com/book-a-demo/

The SMTA held its black-tie dinner on Thursday 27th October at the Hilton Glasgow, we played host to an audience of 330 guests from all sectors of the Scottish motor trade, the event was also attended by fellow trade associations from the rest of the UK, Southern Ireland and Brussels. 

A huge thank you to our headline sponsor Central Car Auctions and all our other supporting sponsors:

Adesa, Automotive Compliance, Arnold Clark, Car Care Plan, EMR Metal Recycling, Marsh, Moto Novo Finance, Supagard, Tyres Life and Viking Wholesale Tyres - many thanks indeed!

We were delighted to award a number of our members with our C.A.R Star Awards – (Community Activity Recognition) Awards recognising these members that have given up their time or funds and in doing so contributed to their local community-based projects and charities. It is always humbling to highlight these efforts and we feel that these actions deserved to be rewarded.  This process just serves to display that all of our members businesses form part of the community within which they trade and sometimes it is nice to let everyone know that they are not just somewhere to buy a car or get your car repaired! 

Sandy Burgess commenting on the Award winners said “On behalf of SMTA, we are delighted to be able to broadcast some of the wonderful contributions made to local charities and their respective communities by our membership, day in and day out, these awards are so diverse and well deserved it really can be quite humbling handing them out!”

The Chancellor of the Exchequer Kwasi Kwarteng has announced £45 billion of tax cuts in a ‘mini’ budget set to cost the exchequer around £100bn.

Kwarteng moved to axe the additional 45% income tax band, cut the basic rate of income tax to 19%, scrap plans for a hike in corporation tax, reverse next April's planned 1.25% National Insurance increase and abolish a cap on bankers’ bonuses in what has been described as the biggest tax cutting event since 1972.

The cost of Kwarteng’s bid to address UK inflation of 9.9% and boost the economy is estimated by the Institute of Fiscal Studies (IFS) to be around £37bn in the next financial year.

That total excludes the estimated £60bn already committed to tackle soaring energy prices by capping the average household energy bill to £2,500 and handing businesses an energy price guarantee for the next six months.

Read the full article at AM Online here 

The SMTA joins the nation in sending condolences to the Royal Family and expressing our gratitude for the lifelong commitment made by HM Queen Elizabeth II.

The ongoing shortage of semiconductors continued to impact new car market supply, with an inevitable knock-on effect on used transactions. Declines were recorded in each month, with falls in April, May and June of -16.8%, -20.9% and -18.6% respectively. As a result, the market is down -8.3% year to date on 2021, and -12.8% on pre-pandemic 2019.

However, battery electric vehicle (BEV) sales rose 57.1% to reach 16,782 units, doubling market share to 1.0%, while plug-in hybrids held relatively stable with 1.0% growth and 0.9% of the market. Hybrids (HEVs), meanwhile, declined by -4.0% with 2.4% of the market. As a result, used petrol and diesel vehicles remained dominant, totalling 1,682,280 units and accounting for 95.6% of sales.

Reflecting the new car market, the most popular segment types were supermini (31.4%), lower medium (26.5%) and dual purpose (14.7%). Black cars proved the most popular, accounting for more than one in five (21.5%) sales, followed by blue and grey. Pink cars proved the least popular overall, comprising 1,135 units.

Mike Hawes, SMMT Chief Executive, said, “It was inevitable that the squeeze on new car supply would filter through to the used market. Despite this, Britain’s used car buyers clearly have a growing appetite for the latest low and zero emission cars, and we need a thriving new car market to feed it. The next Prime Minister must create the conditions to drive consumer confidence, especially in EVs, and the fleet renewal necessary to meet our decarbonisation goals.”

• UK used car market falls -18.8% in Q2 2022 with 1,759,684 cars changing hands.
• First half transactions down -8.3% on last year and market now -12.8% year to date behind pre-pandemic 2019.
• Battery electric vehicles (BEVs) see boost of 57.1% to reach one in 105 transactions.

The UK automotive industry has reduced its carbon footprint to the lowest level on record, with a reduction of 11.2% in 2021.

Data from the Society of Motor Manufacturers and Traders’ (SMMT) latest Sustainability Report shows that automotive production and the supply chain emitted 81,095 fewer tonnes of CO2 in 2021 compared with the previous year.

UK car production in 2021 fell 6.7% to only 859,575 units, the worst total since 1956. Output was 61,353 less than 2020, which was affected by coronavirus lockdowns, and 34.0% below pre-pandemic 2019.

Despite reduced production, the industry was still able to improve its environmental efficiency, with a 6.1% reduction in water used per vehicle produced, and a 2.6% reduction in waste going to landfill year on year.

The SMMT’s research shows that 96.2% less waste per vehicle goes to landfill than did at the start of the millennium. In addition, since 2015 the industry has ensured 95% of a vehicle by weight goes through a takeback network to be re-used, recycled or recovered.   

Specialist and low volume manufacturers were even more successful in delivering sustainable production, emitting 26.6% less CO2 per vehicle produced and sending no waste to landfill at all. Water use per vehicle also fell by 11.6%, while overall production increased by 40.2%.

Article courtesy AM Online - read full article here https://bit.ly/3zyOrrG

Monday 13 June, 2022 Some of the UK’s most innovative companies in electric and zero emission vehicle technology will today attend one of the world’s largest EV events, the Electric Vehicle Symposium and Exhibition (EVS35) in Oslo. The trade mission, with a dedicated UK Pavilion organised by the Society of Motor Manufacturers and Traders (SMMT) in collaboration with the Advanced Propulsion Centre (APC), is set to boost trade and investment into the UK automotive sector, with the Prime Minister’s Trade Envoy to Norway and Iceland, Felicity Buchan MP, joining senior industry executives to showcase British expertise in designing and deploying low carbon mobility solutions.

SMMT and APC are joined at EVS35 by the Department for International Trade (DIT) and Innovate UK, all united in their ambition to deliver zero emission transport while driving new, clean-tech jobs and greater trade. As the global pace of electric vehicle uptake quickens, led by massive industry investments in the latest technology, so too do the opportunities to unlock new jobs, capital and growth in the automotive sector.

The UK is one of the leaders in this transition, with upstream R&D as well as downstream development and engineering of the parts, components, powertrains and the vehicles themselves. The UK will also be arguably the first major market to go electric, phasing out the sale of new pure petrol and diesel cars and vans by 2030 with a Zero Emission Vehicle mandate to drive this evolution. This is one of the most ambitious timelines in the world and requires the UK automotive sector to make more significant and accelerated investment in manufacturing and market development than just about any other major automotive nation.

The wheels are in motion, with manufacturers already committing at least £10.8 billion to EV and battery R&D and production in the UK while British factories have produced a quarter of a million electric cars, vans, buses and trucks since 2011.¹ In April alone, more than one-in-four (26.4%) cars produced by UK car makers was electrified, boosted by battery electric vehicle (BEV) output up 38.2%, meaning one-in-10 cars made was powered purely by electricity.²

The UK market for these cutting-edge models, meanwhile, is one of the largest in Europe, behind only Germany in terms of new registrations last year.³ There are now more than 150 models of plug-in cars and vans on sale in Britain and, while globally BEV sales doubled in 2021, the UK had its best ever year with more electric cars registered than over the previous five years combined.⁴  BEV registrations have surged more than 70% to 92,512 this year and, by year end, they are expected to take 16.8% of the UK car market equivalent to one in seven sales.⁵

Mike Hawes, SMMT Chief Executive, said, “We are at a pivotal moment on the road to zero emissions. Countries are competing for investment to drive production of the next generation of clean transport solutions and the UK must be in the vanguard. The UK has advantages over its rivals as a place to do business, with a highly productive workforce, some of the best R&D minds and universities globally and close collaboration between its automotive sector and government, not to mention strong consumer and business demand for the latest vehicles. EVS35 provides the perfect platform to demonstrate these capabilities to the world and strengthening our global trade and investment links will only bring mutual success.”

Philippa Oldham, Director of Stakeholder Engagement at Advanced Propulsion Centre, said: “We're pleased to be working with SMMT to showcase why Britain is a world leader in automotive technology and an ideal place to invest.

“Electrification is shaping the future of automotive, and as one of the most important segments of the UK's low-carbon economy it is vital that the sector continues to build global alliances to secure its future in the years to come. The UK Pavilion at EVS35 provides the perfect platform for UK businesses to engage with some of the leading players in electric vehicle technology, helping to demonstrate the value they bring to the wider industry and create new opportunities in the process.

“The UK has a valuable role to play in the continued evolution of automotive and clean technologies from British businesses will be critical amid the push to net zero.”

Felicity Buchan MP, said, "As the Prime Minister's Trade Envoy to Norway and Iceland, I am delighted to be attending the EVS35 to support British exporters of Electrical Vehicles. The UK is leading the world in our transition to a green economy, particularly in our automotive sector where nearly £11 billion has been committed by manufactures in R&D funding for EVs and battery production in the last decade. With our Zero Emission Vehicle mandate by 2030, EVs are a critical part of our path to net zero and I am proud to be supporting companies that will help us achieve that."

Sue Wilthil, DIT Senior Market Adviser, Trade, said, “As part of the Government’s focus on greening our economies and reducing global emissions, DIT Oslo are delighted to support UK EV companies in the export of their technologies and services to Norway. Norway is a market which is leading the world in the introduction of electric and hybrid vehicles and not only provides a potential market for UK exports but is also a market from which the UK EV sector can learn a great deal.”

The UK Pavilion exhibitor line-up at EVS35 will include these cutting-edge companies:

• Autocraft Solutions Group – repairs and remanufactures battery packs for several original equipment manufacturers and also remanufactures electric drive units.
• Cenex – focuses on low emission transport and associated energy infrastructure and operates as an independent, not-for-profit research technology organisation and consultancy.
• ENSO Ltd – makes tyres for electric vehicles to extend range and reduce tyre pollution.
• ePropelled Ltd – specialises in the design of innovative propulsion motors for electric vehicles.
• Switch EV – produces electric vehicle charging management software.
• Tevva – designs and manufactures zero-emission medium to heavy duty trucks with a revolutionary combination of battery electric and hydrogen fuel-cell range extender technology. David Thackray, Marketing Director, will be speaking on the main stage, Tuesday June 14, as part of a panel discussion.
• Versinetic – produces cutting-edge integration hardware and software solutions for EV charge points and offers consultancy to help accelerate time-to-market.

• Average battery range of vehicles at annual SMMT Test Day grows from 74 miles to almost 260 miles during Britain’s first ‘electric decade’.
• Industry confirms commitment to zero-emission motoring, from hatchbacks to supercars, as more than 40% of models on the market now come with a plug.
• SMMT Test Day reflects EV model choice with two in five cars on the track running on a battery or plug-in hybrid powertrain, alongside electric vans, pick-ups, taxis and trucks.

Millbrook Proving Ground, Bedford, Tuesday 26 April, 2022 Massive investment by car makers since 2011 means today’s electric vehicle buyers can benefit from a 15-fold increase in choice of model, as well as, on average, more than three times the battery range compared with a decade ago, according to new research by the Society of Motor Manufacturers and Traders (SMMT).

At the time of the launch of Britain’s first mass-produced battery electric vehicle, the Nissan LEAF, in 2011, just nine plug-in car models were available in the UK – making up less than one in 1,000 total registrations.¹ Today, there are more than 140 plug-in models available, accounting for around one in five new cars sold this year, with a further 50 models expected to be launched by the end of 2022.²

SMMT will show this wide range of choice at its annual Test Day driving event on Tuesday, with 33 manufacturers demonstrating more than 100 models at Millbrook Proving Ground, including 42 plug-in electric models on the circuit.³ Hundreds of media guests will test the high-level performance, safety and technology features of the latest cars, vans, pick-ups and taxis. They will also get first-hand experience of the dramatic improvements in electric vehicle battery technology, with the battery electric vehicles on display averaging 257 miles on a single charge³ – more than treble the average of 74 miles available at Test Day in 2011.⁴

This increased range is a direct result of the automotive industry’s ingenuity and investment – and the trend will continue, with all of Britain’s leading car manufacturers and importers committed to decarbonising their model line-ups, whether hatchbacks, SUVs or hypercars, with a further 150 new and updated plug-ins due to be delivered to the UK market by 2025.

Newly introduced for SMMT Test Day 2022 is the Working Vehicle Zone, where 15 trucks will be tested – almost half of them zero-emission – having undergone significant technological advancements during the last decade.⁵ These larger, heavier vehicles are vital to the UK economy and its green transition, with similar timescales to electric cars and vans, in spite of their highly complex mechanical and infrastructural challenges. However, truck manufacturers are already providing innovative solutions, with mammoth battery and plug-in hybrid powertrains, hydrogen fuel cell and quick-charging capability to meet their varied transportation uses.

While electric vehicles of all shapes and sizes have become more visible across the UK – alongside the gradually increasing presence of chargepoints at fuel stations and roadside in cities and on motorways – infrastructure has failed to keep up with demand, and could stifle greater uptake, with 75% of motorists saying there are not enough public chargepoints to meet their needs.⁶

Further investment in chargepoint infrastructure, therefore, is essential so that all consumers in all regions of the UK can be confident they will be able to charge their electric vehicle whenever and wherever they want. The government’s new EV infrastructure strategy launched last month was a positive step towards addressing consumers’ needs, but there must be binding targets for chargepoint delivery that match the latest ambitious mandates on electric vehicle production to deliver this fundamental infrastructure ahead of need.

www.smmt.co.uk

The First Minister issued a statement yesterday confirming that the legal requirement to wear face coverings in most indoor public spaces and on public transport will become guidance next week.

 

It is strongly recommended that face coverings continue to be worn where appropriate – including in indoor crowded spaces and on public transport - as members of the public are advised to carry on taking sensible precautions to reduce the spread of COVID-19.

 

Businesses may also wish to strongly recommend, or indeed require, people to wear face coverings in areas where the risk of transmission is higher or where your risk assessment supports the wearing of them, noting exemptions.

 

On Monday 18 April, we will publish updated guidance for people who are managing a workplace, organisation or premises, providing advice on steps you can take to help reduce the risk of transmission of COVID-19 to create a safer environment.

 

To coincide additional 'Covid Sense' Campaign assets are now available in the 'Covid Sense' Stakeholder Toolkit. The COVID-19 safety behaviours are well-known and have been a part of our everyday life for the past two years. The 'Covid Sense' Campaign aims to provide a little reminder of these behaviours and the positive impact they can have, protecting yourself and others.

 

Key Messages

 

'Covid Sense' is protecting yourself and others by:

• Opening windows when socialising indoors
• Wearing a face covering in indoor public places or on public transport
• Washing your hands to protect yourself
• Getting your vaccine when offered

The automotive industry has called for all stakeholders to match its commitment to deliver zero emission mobility, as new analysis by the Society of Motor Manufacturers and Traders (SMMT) reveals some £10.8 billion has been dedicated to UK electric vehicle production and gigafactories since 2011, with billions more invested globally to bring new technology to market.1 Given the figure accounts purely for public announcements by vehicle and battery manufacturers, and does not include wider supply chain investment, the overall UK automotive commitment to electrification will be even higher.

In Britain’s first ‘electric decade’, kicked off by a £420 million investment in Sunderland for the UK’s first mass-produced battery electric car, more than 10 vehicle manufacturers have invested in communities across the country to create jobs and to design, engineer and build the cleanest, greenest vehicles for domestic and export markets. Alongside cars, the UK also produces electric vans, buses and trucks, as established manufacturers and new entrants have invested in production.

The UK electric vehicle market has followed suit, growing rapidly. Ten years ago, six models of electric car were available, accounting for less than one in 1,000 new car registrations. There are now more than 140 models on the market, with electric vehicles comprising more than one in six new cars and one in 28 vans registered. Just one in 80 cars on the road, however, runs on electricity, with the UK aiming for one in three by 2030 if net zero ambitions are to be met. The challenges are examined in Plugging the Gap, SMMT's updated blueprint for delivering the zero emission transition. 

Private motorists accounted for just a third of new plug-in registrations in 2021, with uptake far higher among businesses and fleets, which benefit from generous fiscal incentives.² Conversely, purchase incentives have been rolled back dramatically over the past year, with the UK’s EV adoption now falling behind some European markets which offer more attractive incentive packages.

Further growth in this market, however, depends as much on chargepoint provision as affordability. Research by SMMT reveals that the ratio of public standard chargers to electric vehicles has rapidly deteriorated, with just one charger for every 32 plug-ins across the UK compared with one for every 16 just 12 months ago, and significant regional variations. The industry is calling on all parties integral to the drive to zero, including chargepoint operators and government, to help ‘plug the gap’ between infrastructure rollout and uptake.

SMMT has advocated a nationally co-ordinated, locally delivered infrastructure plan, with binding targets for chargepoints that match those imposed on vehicle manufacturers. Overseen by a regulator, such a plan would put consumers at the heart of the transition, accelerating chargepoint provision and addressing charging anxiety among drivers and businesses. It would also help the one in three households that do not have off-street parking and would therefore be reliant on public charging, to make the switch.³

Furthermore, a vibrant, well-supported market would help attract greater industrial investment, creating jobs and supporting economic growth. Gigafactory investment is essential if the UK is to achieve the 60GWh capacity it needs by 2030, a capability that would support the production of around one million electric vehicles a year.

This, in turn, would enable the industry to exploit the benefits of the UK’s ambitious trade agenda, maximising locally originating content to achieve tariff-free exports to key growth markets worldwide, and help Britain to realise a zero-emission future with greater resilience and self-sufficiency in battery production and the wider electrified supply chain.

While overall UK gigafactory capacity is currently just 2GWh, the £10.8 billion figure includes major battery production commitments that will come online in the coming years, estimated to take UK capability to around 41GWh by 2027. The EU, meanwhile, is forecast to have a capacity of up to 1.5TWh by 2040, with more than 25 gigafactories either under construction or in development.

For the UK to become a location of choice for potential investors, therefore, government must create the right conditions, with a streamlined process for obtaining the necessary permits and licences, easy access to skilled and productive labour, and competitively priced clean energy.

• Grey is the UK’s most popular new car colour for fourth consecutive year, followed by black and white to complete the monochrome set.
• Blue edges closer to top three but appetite for niche paints gold, yellow, turquoise and green grow fastest.
• Green also boosts under-bonnet appeal as drivers switch to electric vehicles in record numbers, with one in six choosing a car with a plug.

British drivers doubled down on their preference for monochrome cars in 2021, with grey increasing its dominance as the UK’s favourite new car colour for the fourth year in a row, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). During a year of pandemic-related disruptions impacting total new car registrations, 408,155 grey cars were sold, up 2.8% and accounting for a quarter (24.8%) of the market.

Black, the most popular car paint in Britain from 2009 to 2012, wrapped 20.5% of passenger cars, while white was in third place (17.2%), meaning UK drivers were most likely to choose a monochrome car for the 11th year running. More than six in 10 (62.4%) of all new cars joining British roads in 2021 were painted in one of these shades, although blue edged closer to the top three, increasing its sales (1.4%) for the first time in five years and trailing just 2,638 units behind white.

The rest of the top 10 remained largely unchanged from 2020, although green overtook orange to gain seventh place, cladding 17,927 cars. Sales of green cars rose for the first time since 2015, with 24.0% more buyers opting for the colour than in the previous year.

A record number of drivers also opted for ‘green’ under the bonnet, with battery electric and plug-in cars accounting for more than one in six registrations – up from around one in 10 in 2020 and one in 30 in 2019. However, whether battery electric, plug-in hybrid, hybrid, petrol or diesel, grey was the colour of choice across all fuel types.

White was the most popular shade for mini-sized and sports cars, while larger dual purpose, luxury saloons and executive cars were, as usual, most likely to be black.

At the niche end of the colour palette, gold, yellow and turquoise were the fastest growing colours, with gold more than tripling its appeal (up 231.8%), yellow up by a third (31.3%) and turquoise up by a fifth (19.2%), although together they accounted for less than one percent of the market (0.9%).

Article credit: SMMT

COVID-19 ‘Living Safely for Us All’ Campaign – please find the updated Stakeholder Toolkit here.

With Omicron cases declining and restrictions easing, yesterday saw the re-introduction of the ‘Living Safely For Us All’ campaign. Messaging has been updated to reflect a more positive tone, while still covering the COVID-19 safety behaviours. Living Safely For Us All illustrates that by keeping up with the key behaviours, it helps keep life moving elsewhere. Living Safely For Us all will run throughout February across TV, radio, outdoor and digital advertising channels.

• View the ‘Living Safely for Us All’ TV ad via YouTube here

Key Messages

The ‘Living Safely for Us All’ key messages include:

• By living as safely as we can with COVID around, we’re helping others, helping our NHS and helping Scotland’s recovery.
• Get vaccinated (1^st, 2^nd, 3^rd or booster)
• Take an LFD test before socialising, mixing with others or using public transport
• Wear a face coverings in indoor public places
• Self-isolation and testing has now changed to reduce isolation periods in certain circumstances.
• Report LFD test results, even if negative
• Let fresh air in regularly if meeting others indoors
• Clean your hands and surfaces regularly

How You Can Help

• Please use the updated assets moving forward
• Please discontinue use of any ‘stay at home’ materials and previously shared TV advert to ensure the latest self-isolation guidance is being shared
• If you don’t already, please follow SG channels across Facebook, Twitter and Instagram and share and retweet content

Stakeholder Toolkit

The ‘Living Safely this Winter’ Stakeholder Toolkit contains the following, with all download links available within the toolkit:

• Campaign overview and key messages
• TV ad and 10 sec social cut-down films
• Stakeholder Posters – Key COVID Protection Measures and Flowchart of Self-Isolation Changes
• Editable Stakeholder Posters for Local Test Centres
• Social media assets with suggested copy
• Email signature and web banner
• Useful links

The Frankfurt court has just ruled that the Opel dealer remuneration system in Germany is illegal. The Belgian Competition Authority received a complaint for similar facts 

In November 2020, VDOH, the Association of German Opel Dealers which is member of the European Opel Dealer Council, member of CECRA, had filed a lawsuit on behalf of its members against Opel’s so-called "Commercial Policy", which regulates the remuneration system for its authorised dealers.
 
According to the association, the complaint is directed against the general structure of the remuneration system, its incalculability and, above all, against the numerous unilateral possibilities for change, including intervention in the margin. 
 
Last week, the Frankfurt Regional Court upheld the action against Opel for its “Commercial Policy”. Opel may no longer impose a regulation on its sales partners in which the manufacturer can arbitrarily change the remuneration of its dealers consisting of a fixed margin and bonuses.
 
Opel Germany has already announced that it will appeal the ruling to the Higher Regional Court of Frankfurt am Main.
 
CECRA’s Director General Bernard Lycke said: “We very much welcome the decision of the Frankfurt Regional court as anotherbreakthrough in dealers’ decade-long struggle for more fairness. Especially in light of all current radical changes and challenges, this Court’s decision could change the margin regulations of many makes and therefore paving the way for a balanced and fair partnership in the automotive industry”.

Yesterday, the First Minister delivered a statement to Parliament  where she said Cabinet had agreed to keep all current COVID protections in place, given the very significant risks posed by Omicron and the continuing high and rising number of cases overall.

It was also agreed that it was vital to strengthen compliance with existing protections and to keep the need for any additional protections under daily review.

The First Minister said heightened compliance with current protections will give the best chance of avoiding any additional protections and asked everyone to make an extra effort to do so from now through the festive period and into January.

Employers are also being asked to ensure that people are working from home wherever practical and that if staff were working from home at the start of the pandemic then they should be enabled to do so again. This advice will be reviewed in the middle of January.

People are also being asked to do a lateral flow test before mixing with people from other households and on every occasion they intend on doing so.

The First Minister held a media briefing following the emergence of the COVID-19 Omicron variant – of which six cases have been identified in Scotland. Read the full statement here.

The First Minister asked that everyone significantly step up and increase compliance with all existing precautions - face coverings, hygiene like washing hands and surfaces, getting vaccinated and testing regularly with lateral flow devices - and to now test before mixing socially with people from other households.

She also reminded people to work from home if possible and asked employers to make sure they are maximising the potential of home working.

In line with the rest of the UK, the red list of countries has been reinstated and to date 10 countries from Southern Africa have been added. This will be kept under review. Anybody travelling back to Scotland from those 10 countries must enter managed quarantine for 10 days on their arrival. In addition, any vaccinated traveller arriving in Scotland from anywhere outside the common travel area, will need to self-isolate until they get a negative result from a PCR test taken on the second day after arrival. The rules for people who are not fully vaccinated will stay the same.

Following the launch of COVID-19 winter campaign: ‘Living Safely for Us All’, a series of social films have been produced. The full length films are available here and cut down films are available here and can be shared with audiences via social media channels.

• Latest SMMT outlook forecasts that some 287,000 plug-in vehicles will be registered in 2021 – more than from 2010 to 2019 combined.
• Battery electric vehicles forecast to outsell conventional diesel and mild-hybrid diesel cars in 2022.
• Industry credits acceleration in growth to wide choice of vehicles, growing public acceptance and incentives.

Wednesday 3 November, 2021 New plug-in vehicle uptake rates have accelerated so rapidly that more will join Britain’s roads in 2021 than during the whole of the last decade, according to the latest forecast from SMMT.

A total of 271,962 new battery electric (BEVs) and plug-in hybrid vehicles (PHEVs) were registered between 2010 and 2019. However, as the UK hosts the COP26 environmental summit, SMMT now expects Britain to break its plug-in records, forecasting that businesses and consumers will take up around 287,000 of the latest zero-emission capable cars during 2021 alone – around one in six new cars. Based on current forecasts, BEV registrations are also expected to exceed those of diesel by the end of 2022.

The rise is even more remarkable given that 2021 is expected to be a relatively weak year for new car registrations, some -30% below the average recorded over the past decade.¹ The semiconductor shortage has reduced overall global car production, but manufacturers have done all they can to ensure the availability of as many plug-in vehicles as possible.

Uptake rates of plug-in vehicles began to accelerate dramatically during 2020, as the billions of pounds invested by manufacturers in new technology resulted in the widest ever choice of zero emission-capable cars. More than a quarter of all car models available in the UK can now be plugged in.

Businesses have been particularly incentivised to invest in plug-in cars thanks to a range of tax breaks and grants, meaning around two in every three new BEV registrations this year have been for large fleets.

Sustaining this surge and ensuring zero-emission mobility is accessible for all will depend on encouraging all consumers to make the switch away from fossil fuels. The UK already plans to be the first major automotive market to end the sale of new conventional petrol and diesel cars in 2030, but delivering this bold aim will require the continuation of purchase incentives to encourage those drivers currently unable or unwilling to make the transition to electrified motoring. Even more significant, however, is the need for turbocharged investment by both the public and private sector into the essential public charging infrastructure required by a growing plug-in vehicle fleet.

Mike Hawes, SMMT Chief Executive, said: “As Britain hosts COP26 and seeks to align the world in committing to achieving net zero and limiting the global average temperature rise to 1.5 degrees above pre-industrial levels, our latest outlook shows the UK experiencing a surge in plug-in vehicle uptake. Massive investment by industry as well as long standing government incentives have seen us go from just 188 new plug-in cars in 2010, to almost 300,000 in 2021.

“To achieve net zero by the desired date, however, uptake rates must continue to grow. This requires ongoing incentives to help consumers make the switch and significant investment in public charging infrastructure. Backed by the ingenuity and innovation of the automotive sector, we can then deliver zero-emission mobility that is accessible and affordable for all.”

• SMMT calls for automotive sector to be the engine of the UK’s future international trade deals after new report reveals vehicles are the nation’s most valuable exported good, worth £27 billion.
• Total automotive sector trade drops -26% during pandemic-hit 2020 but still reaches £74 billion, benefiting every UK region.
• Long-term global car market growth provides major opportunity to accelerate economy.
• Supportive Rules of Origin to reflect post-Brexit supplier base and gigafactory investment will aid Global Britain in leading worldwide transition to electric vehicles.

Tuesday 12 October, 2021 The Society of Motor Manufacturers and Traders (SMMT) has called on government to put the automotive sector at the heart of future trade negotiations, after publishing a new report today confirming vehicles as the UK’s single most valuable goods trade export.

Vehicle export revenues reached £27 billion in 2020, making them more valuable to the UK than power-generating machinery and gold, even during a year when the global pandemic disrupted trade flows and shut down markets around the world.

The UK automotive sector as a whole generated a total trade revenue of £74 billion, underlying its monumental importance to international trade, with more than 80% of British-built cars and more than 60% of light commercial vehicles destined for export.

With hopes rising worldwide that the pandemic is now in retreat, the UK’s trade policy must now take advantage of the opportunities from a post-Brexit, post-fossil fuel world to restore growth and jobs with automotive central to this ambition.

With the global car market expected to grow significantly in regions such as Asia and Eastern Europe, SMMT is calling for future trade deals to include dedicated automotive annexes and provisions to reduce tariffs and regulatory barriers. It also recommends establishing Rules of Origin that will reflect the UK’s future supplier base as manufacturing moves away from the combustion engine, as well as ensuring manufacturers have the ability to recruit top talent from around the world to drive growth.

www.smmt.co.uk

Stop the Spike and COVID-19 Pillars Campaign Stakeholder Toolkit. The overarching aim being to remind the public of the key safety measures they can continue doing to keep each other safe.

Asymptomatic Universal Testing Campaign Launch – ‘Wee Reminder’

Also, as of Monday, 13^th September, we have launched the new Asymptomatic Universal Testing Campaign – ‘Wee Reminder’. The ‘Wee Reminder’ Campaign looks to help engrain twice weekly asymptomatic universal testing as a habit for people of Scotland.

• View the ‘Wee Reminder’ Universal Testing Campaign via YouTube here

How You Can Help

• Please share the social videos and accompanying social copy on your social media channels
• If you don’t already, please follow SG channels across Facebook, Twitter and Instagram and share and retweet content

Stop the Spike and COVID-19 Pillars Stakeholder Toolkit

Please find Stakeholder Toolkit attached, which contains the Stop the Spike COVID-19 pillar assets:

• Safety Measures campaign:
• Overview and key messages
• Social assets and suggested social copy
• Includes specific messages on: ventilation when socialising outdoors, outdoor socialising where possible, cleaning hands, wearing face coverings and transport safety measures
• Asymptomatic Universal Testing campaign:
• Overview and key messages
• Social assets and suggested social copy
• Symptomatic Testing and Isolation campaign:
• Overview and key messages
• Posters, social assets and suggested social copy
• COVID-19 Vaccine campaign:
• Campaign overview
• Posters, social assets and suggested social copy

Campaign Assets

All ‘Stop the Spike’ COVID-19 pillar campaign assets can be found via the links below:

• Download the Stop the Spike Campaign assets via WeTransfer here
• Download the Safety Measures Campaign assets via WeTransfer here
• Download the Asymptomatic Universal Testing Campaign assets via WeTransfer here
• Download the Symptomatic Testing and Isolation Campaign assets via WeTransfer here
• Download the COVID-19 Vaccine Campaign assets via WeTransfer here

Since the start of the pandemic, businesses have made huge changes and sacrifices to protect public health. I’m incredibly grateful to the business community and would like to thank everyone who has spent time and effort to make their businesses as safe as possible for customers and staff. Your contribution has been vital in helping us control the spread of the virus.

We know these necessary modifications have often had a detrimental impact on the economic activity of businesses so I’m pleased our economy is now able to open fully as we move beyond Level 0.

However, the virus has not disappeared and case numbers have been increasing. That is why it is important we keep some precautionary measures in place to allow for a gradual and cautious approach, particularly as we move into the winter when more people will be interacting indoors. This will help to reduce the risk of outbreaks and allow all sectors of the economy to stay open.

Businesses have shown great leadership throughout the pandemic in encouraging adherence with mitigations and we would ask that this continues at this fragile time. I would urge customers to follow the guidance too, to support the businesses they use.

The most important step we can take to control the virus is to get vaccinated and we would encourage all who have not yet been vaccinated to do so.

Alongside this we urge businesses to continue to communicate and work with their employees to implement measures which will help us supress the virus:

1. wear face coverings – this is legally required in most indoor public places including retail, restaurants, cafes, bars, workplaces and on public transport for staff and customers
2. support staff to self-isolate if they are asked to do so by the NHS
3. regular testing of staff to help break the chains of transmission
4. continue to work with staff to support home working
5. keep your premises as well ventilated as possible

Guidance for safer businesses and workplaces can be found on the Scottish Government website, including a range of further precautionary measures and good practice which can be used in workplaces to reduce the risk of outbreaks.

By working together, we can ensure businesses remain open and our economy recovers from the effects of the pandemic.

Kate Forbes
Cabinet Secretary for Finance and the Economy

• 69,097 cars roll off production lines in June, weakest total since 1953, bar Covid hit June 2020.
• UK factories turn out 498,923 cars in first half of year, down -38.4% on five-year average.
• Latest forecast suggests global chip shortage could negatively impact planned UK production volumes by up to 100,000 units.
• Industry calls for immediate action to mitigate impact of self-isolation or risk further blow to recovery.

Thursday 29 July, 2021 UK car factories turned out 69,097 units in June, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). While this was a rise compared with the Covid-depressed June 2020, it still represents the worst June total since 1953 as the global chip shortage, caused by the pandemic, and other factors continued to take a toll on production.¹

The performance rounded off a turbulent first six months for UK car production, with the pandemic, new trading rules with Europe and supply issues causing ongoing challenges. 498,923 units rolled off production lines, down -38.4% on the five-year, first-half average representing a loss of 311,160 cars worth more than £8.5billion.² This reflects how far the sector must go before it can talk about recovery.

Exports continued to sustain British car manufacturing with more than eight in ten (83.4%) models made here so far this year shipped overseas. More than half of these (51.7%) headed into the EU, with the US the UK’s next most important global market (taking 18.8% of exports) followed by China (7.8%), Japan (1.9%) and Australia (1.8%). 

UK production of battery electric (BEV), plug in hybrid (PHEV) and hybrid electric (HEV) vehicles, meanwhile, remained steady year-to-date with around a quarter (22.6%) of all cars alternatively fuelled. However, with the looming end of sale date for new petrol and diesel cars less than nine years away, the industry is challenged to accelerate the transition from fossil fuel to zero emission vehicles. This will require significant investment into vehicle manufacturing, battery production and supply chain transformation for which a clear commitment to enhancing UK automotive competitiveness is essential.

Despite the easing of Covid restrictions, manufacturers are experiencing staff shortages due to self-isolation arising from notification of contacts outside the workplace. This is putting production at risk and is another drag on the sector’s recovery. Indeed, an independent study forecasts the negative impact on planned UK car production, primarily due to the worldwide shortage of critical semiconductors, could be as much as 100,000 units this year.³  

Mike Hawes, SMMT Chief Executive, said, “While the UK automotive industry continues to suffer the effects of the global pandemic, with first half year production down significantly and a tough few months looming, the sector has the capability to recover. The latest investments into new models and battery production show a bright future is within reach, yet the industry still faces headwinds most notably from global semiconductor shortages and staff absenteeism as a result of staff being ‘pinged’.

“Businesses have ensured their facilities are Covid secure but urgent action is needed, such as bringing forward the 16 August target date for exempting fully vaccinated adults from self-isolation and introducing a “test to release” scheme to support those employees not yet fully vaccinated.

“Operating conditions are still challenging, however, highlighting the need for specific actions to help competitiveness, such as creating a Build Back Better Fund and the alleviation of high energy costs, to get the sector back on track and towards the volumes that make UK facilities viable.”

The current situation for UK manufacturers remains difficult with the supply uncertainty expected to last into 2022. Despite this, there have been recent announcements of significant long-term investment into UK Automotive, including in Sunderland, Ellesmere Port and Norfolk, investment which is much needed following four years of Brexit uncertainty and some recent factory closures.

Much more such investment is needed, however, if the British vehicle manufacturing sector is to remain in step with its overseas rivals. ‘Full Throttle: Driving UK Automotive Competitiveness’, a report launched recently by SMMT, sets out a series of steps needed to attract such commitments and assure the sector’s long-term competitiveness. Recommendations include for the establishment by government of a ‘Build Back Better Fund’ for the manufacturing sector, the construction of gigafactories with 60 GWh of capacity and the installation of 2.3 million public charge points by 2030.

www.smmt.co.uk

In this issue of AutoFocus, Cox Automotive look at the new and used car sectors, providing context to some of the forces driving current market trends. In addition, we discuss how global new car production issues are creating huge supply issues, impacting both the new and used markets and changing the way dealers go about business.

They also look at how the reopening of physical showrooms has affected car sales over the last few months and reveal their brand-new Q3 'new and used' forecast and revised 2021 forecasts.

You can read the publication here

Finally, we’re pleased to include guest features from the NFDA and Grant Thornton once again who take a forensic look at the important franchise dealer and manufacturer sectors respectively.

The Coronavirus Job Retention Scheme (the “furlough scheme”) is currently envisaged to end on 30 September 2021 and there are changes as to how the furlough scheme will operate in July, August and September 2021.

Currently, the government covers the full 80% of employee earnings (not including employer National Insurance and pension contributions) which furloughed employees are entitled to under the furlough scheme, subject to a cap of £2,500 per month.

From 1 July onwards, in addition to the employer National Insurance and pension contributions which employers are already required to cover, employers will also be required to make a 10% contribution in respect of furloughed hours in July, with the government’s contribution capped at £2,187.50 and the employer’s contribution capped at £312.50. This will then increase on 1 August to the employer having to make a 20% contribution for the months of August and September 2021, with the government’s contribution for those months being capped at £1,875 and the employer’s contribution capped at £625.

These increased contributions will apply to the unworked hours of any employee on ordinary furlough leave or on flexible furlough leave.

For the avoidance of doubt, the percentage of earnings which employees will require to receive from 1 July until 30 September must remain the same as it has been to date, namely 80% and subject to a cap of £2,500. It is the ability of employers to recover the furlough pay from the government which is reducing on the sliding scale in the months to come.

As always, employers are able to ‘top up’ furlough pay in excess of the above minimum rates at their discretion.

Whilst none are envisaged at present, should there be any further extensions or changes to the furlough scheme, we will update clients accordingly.

• ‘Full Throttle: Driving UK Automotive Competitiveness’ explains how government can deliver manufacturing competitiveness in the transition to net-zero and help ‘level-up’.
• Sector calls for a ‘Build Back Better Fund’, 60 GWh of gigafactory capacity and 2.3 million charge points by 2030.
• Industry has potential to gain 40,000 jobs this decade but, if left stranded, risks precipitous decline.

Tuesday 29 June 2021 The Society of Motor Manufacturers and Traders (SMMT) today launches a new, ambitious plan, ‘Full Throttle: Driving UK Automotive Competitiveness’, to secure the future of one of Britain’s most important industries.

The automotive manufacturing sector employs around 180,000 people nationwide, contributes £15bn to the economy and is the country’s largest exporter of goods.¹ Moreover, automotive enables mobility. Cars and other vehicles take people to work and education, deliver food and goods and support our essential and emergency services, not least during the pandemic. Three-quarters of people over 17 in England hold a driving licence, and 95% of car owners agree that their car gives them significantly greater freedom and mobility.² It is an industry that warrants unambiguous backing.

Commissioned by SMMT and written by Public First, the strategy sets out a series of bold policy proposals for this coming year and remainder of the decade, covering all aspects essential to automotive industry competitiveness. The UK industry has many strengths – the diversity of its companies, its engineering excellence, innovation, a highly skilled workforce and the strength of the UK market, but the global industry is fiercely competitive, and weaknesses must be addressed if its long term success – and the benefits that come with it – are to be assured.

The strategy calls for a new ‘Build Back Better Fund’ to support industry transformation, not just in automotive but across other manufacturing sectors, to revolutionise production lines and overcome some of the areas where the UK lags in cost competitiveness or strategic support – from skills to energy costs. Most importantly, the fund will help the sector transition to Net Zero and transform our existing manufacturing and supply-chain.

The shift to electrified vehicles is the biggest challenge facing the sector. Government is already working with industry to attract additional battery manufacturing to the UK but the report calls for a binding target of 60 GWh of battery capacity be built by 2030. These ‘gigafactories’ would give British manufacturers the capability to produce up to one million electric vehicles a year and ensure tariff free access to critical markets in the EU.

Finally, to support market transition, the report calls for the installation of at least 2.3 million charging points nationwide before the end of the decade. This would ensure all drivers – especially those without driveways – have the confidence to invest in the latest zero emission technologies, investment that will not just support a healthy domestic vehicle market, but which will underpin mass market automotive manufacturing in the UK and help deliver the country’s climate change and air quality goals.

The stakes are high. In a best-case scenario with the sector transitioning successfully to a zero emissions future, with ambitious global trading terms, there is the potential to gain 40,000 new, well paid and highly skilled sector jobs by 2030. This would provide a significant impact in auto heartlands such as the North-East and West Midlands, directly helping ‘level up’ the UK.³

The 12 Policy Proposals:

Technology & Innovation

1. Commit to creating 60 GWh of battery production within the UK via gigafactories by 2030.
2. Support development of a fuel cell gigafactory with 2GWh capacity to support cars, heavier vehicles and rail units by 2030.
3. Roll out a comprehensive and long-term skills strategy that supports auto needs combined with piloting greater flexibility in the Apprenticeship Levy to support retraining.
4. Commit to the UK becoming a global leader in developing, testing, trialling and deploying Connected and Automated Vehicle (CAV) technology.

Manufacturing Competitiveness

1. Introduce a new ‘Build Back Better Fund’ to support good manufacturing jobs for the future and help lower manufacturing costs such as energy.
2. Allow net zero critical industries, such as manufacturers of low carbon, hydrogen and battery vehicles, to access the same benefits and compensation schemes as energy intensive industries and get more support within the UK Emission Trading Scheme (ETS).
3. Fund trial and demonstration projects to explore the use of hydrogen during manufacturing.
4. Ensure the UK tax system helps position Britain as an attractive destination for global investment.

Consumer, Market & Trade

1. Develop a holistic infrastructure strategy to ensure that at least 2.3 million public charging points are in place by 2030.
2. Commission an independent review to holistically consider the long-term future of fuel duty and CO₂ based taxes like vehicle excise duty in a decarbonised sector.
3. Continue Plug-in Vehicle Incentives beyond their current term and exempt Ultra Low Emission Vehicles from taxation for the next five years
4. Work with the industry to develop an ambitious, forward looking trade strategy, which targets the sector’s most important markets.

• UK factories made 116,639 engines in May, more than double May 2020’s output.
• May 2021 output down -47.6% on five-year average for the month.
• Year-to-date output rises 18.8% with increased production for the domestic market.

Mike Hawes, SMMT Chief Executive, said, “It’s no surprise to see exponential growth in engine production, as the pandemic subdued demand across key global markets last May. Despite the doubling of output this month, a recovery to pre-pandemic levels is still some way off as export volumes remain low and the industry is hindered by the global shortage of semi-conductors. As the UK approaches the end of the lockdown, it is vital that the Government continues to support the industry for as long as is required, as production uncertainty is likely to remain at least until the end of the year.” 

Credit: www.smmt.co.uk

Organisers of Automechanika Birmingham, Messe Frankfurt UK, made the decision following close discussion with exhibitors and other key stakeholders in the UK aftermarket. 

Through this consultation process, there has been a strong interest from suppliers and manufacturers for a face-to-face national event to take place sooner than 2023.The organisers have therefore revealed that they are working with suppliers to formulate a specialist national garage and bodyshop event in 2022, with more details to follow soon.

Meanwhile, Messe Frankfurt continues to offer new digital initiatives, such as auto:resource, which provides suppliers with a digital content marketing platform as a way to connect with their customers.

Simon Albert, Managing Director of Messe Frankfurt UK, said: “We could never have imagined that when we closed the doors to a successful Automechanika Birmingham in 2019, it would be four years until the next edition. Despite these acutely challenging times, we will continue to support the automotive industry by running quality events at the right time for our partners. It has been clear from our conversations with suppliers that the industry has missed events and we look forward to providing them again soon.

“Throughout the coronavirus pandemic, the way the automotive industry, and garages in particular, have consumed content has expanded, with a growing number visiting online and digital platforms to find out information on a raft of issues affecting their business. That is why we created www.autoresource.co.uk to further serve the market.  “With our commitment to organising large scale quality face-to-face events, we will continue to serve the needs of the UK aftermarket.”

Automechanika Frankfurt Digital Plus will run 14 -16 September 2021, and will then take place in its familiar format on the trade fair grounds in Germany 13 -17 September 2022. The Birmingham event will return to the NEC on 6-8 June 2023. More details will be released about the specialist UK garage and bodyshop event in 2022 in due course.

Credit: www.autoresource.co.uk

This June edition brings the latest HMRC updates to support employers and payroll agents.

The bulletin contains key messages on COVID-19 updates and includes a gentle reminder to send in your expenses and benefits in kind information for the 2020 to 2021 tax year.

This edition of the Employer Bulletin covers updates on:

• COVID-19 information
• PAYE
• tax updates and changes to guidance
• customer support.

Yesterday in a statement to Parliament the First Minister confirmed there was no immediate changes to the COVID-19 levels of protection that currently apply to different parts of the country.

The First Minister said it appears that vaccination may be reducing the proportion of people who require hospital treatment as a result of COVID-19 and there is some encouraging evidence that the length of time people spend in hospital is reducing, which may allow more scope to ease restrictions in the future.

However, she also said there is a need for continued caution while a significant proportion of the population has not yet had both doses of the vaccine and so remains more vulnerable to becoming ill and needing hospital treatment.

The Scottish Government is awaiting advice from the Joint Committee on Vaccination and Immunization (JVCI) on the vaccination of children aged 12 to 15 years old with the Pfizer BioNTech vaccine after it was approved for use in those age groups by the Medicines and Healthcare Products Regulatory Agency. If the JCVI recommends the use of the vaccine for children aged 12 and over, their advice will be implemented as quickly as possible.

As part of the Heavy Vehicle Testing Review, The Department for Transport has recommended that the Driver and Vehicle Standards Agency (DVSA) should consider allowing more Authorised Testing Facilities (ATFs) to open. 

Until now DVSA has temporarily paused applications for new ATFs. This has sometimes been called a moratorium. We stopped accepting new applications to set up ATFs in 2017 to help us support existing ATFs and meet their needs.

DVSA and industry bodies have reviewed this policy and developed a plan with several steps to allow applications for new ATFs.  

As a first step towards ending the moratorium, DVSA will now accept new applications if a proposed ATF: 

1. Is a move of premises for an existing ATF, but it is within the same geographic area
2. Already has ‘approval in principle’ from DVSA
3. Is in an area with a substantial shortage of ATFs, currently Orkney and mainland Highlands of Scotland
4. Is in Southern England and is offering testing of fully laden fuel tankers (this is often known as a full pet. reg. site) or ADR testing
5. Will significantly improve the service to heavy vehicle operators, by reduced journey times or other efficiency benefits. Applications made under this criteria will be prioritised based on the certainty and scale of improvement in service the proposed ATF can offer

Timings

As an operator, you may also be interested in joining the ATF network by opening a testing site. You can make an application under any of the 5 criteria from now, Thursday 3 June 2021. We have made some minor changes to the application form to include these criteria. You can find further guidance on how to apply to open an ATF.

Next steps

Applications will need to be assessed to ensure that requirements are met. Once approved and contracts are in place, staff will be scheduled as soon as possible. However, testing staff are scheduled some months ahead, so start dates may not be immediate.  

DVSA knows there will be businesses which do not qualify under these criteria, and there will be further announcements on how these criteria will be widened in the future. 

DVSA is working with industry bodies to develop this plan and we welcome feedback on the future priorities through your trade organisation.  

This is the first in a series of regular messages following the review of heavy vehicle testing and we will continue to communicate with you regularly on our progress.

At the weekend, the First Minister said that there are signs that the situation in Glasgow is stabilising in the postcodes at the heart of the initial outbreak and across the city generally, and that, if that trend continues, the city can move to Level 2 from 00:01 on Saturday 5 June.

• Total vehicles in use on UK roads falls to 40.35m units – the first drop since 2009.
• Average age of car rises to 8.4 years old – the oldest on record – with almost 10m vehicles from 2008 and earlier still in service.
• Vans reach historic highs, up to 4.6m, but declines recorded in truck, bus and coach numbers.
• Number of BEVs and PHEVs increase by more than 168,000 cars, but account for just 1.3% of the parc – demonstrating scale of task ahead to meet ambitious green targets. 

Vehicle numbers on UK roads fell to 40,350,714 in 2020, according to Motorparc data released today by the Society of Motor Manufacturers and Traders (SMMT), the first time the total number has fallen since the global financial crisis of 2009. As the pandemic stifled new vehicle uptake, the average age of cars on UK roads is now the highest on record at 8.4 years. Van uptake, however, has grown to the highest level in history, accounting for 11.4% of all vehicles on the road.

The latest parc data illustrates that, for the second consecutive year, there were more than 35 million cars registered on UK roads (35,082,800), although that figure represents a modest -0.2% dip as Covid impacted new volumes entering the market.

Light commercial vehicles (LCVs) – the only vehicle type to see an increase – saw 1.7% growth over the past year, up to a new record high of 4,604,861 vehicles. Many of these have been instrumental in supporting the nation during the pandemic, providing support to the NHS, and delivering food and goods across Britain.

Meanwhile, the number of heavy goods vehicles on our roads declined by -3.1% to 589,445 units. Bus and coach numbers saw the most significant fall at -10.7% to 73,608, as the pandemic dramatically reduced already-declining passenger numbers causing fleet operators to pause new fleet purchases and take unused vehicles off the road.

With showrooms closed for large periods of 2020 due to lockdowns, fewer new cars were registered, resulting in the oldest average car fleet since records began. The average car on UK roads was built in 2011, while almost 10 million cars have been in service since 2008 or earlier. While this is testament to the durability and quality of modern vehicles, an ageing fleet risks stalling the UK’s attempts to reduce emissions. A new car from 2020 emits, on average, 112.8g/km of CO2, which is 18.3% better than a model registered in 2011. Fleet renewal is essential if the UK is to reach its net zero target, with both conventional and alternatively fuelled vehicles having a significant role to play in the transition.

As part of the journey towards zero emission motoring, the number of battery electric vehicles (BEVs) on UK roads increased by 114.3% to a record high of 199,085, while plug-in hybrid vehicles (PHEVs) also saw their numbers increase by 35.2% to 239,510. However, combined, they represented just 1.3% of all cars on our roads – emphasising the importance of replacing older vehicles with newer, cleaner ones.  Hybrid electric vehicles (HEVs) saw their numbers grow by a fifth to 621,622 cars. Petrol car volumes remained stable, down -0.2%, with diesel falling -2.3%. Combined, internal combustion engine (ICE) models accounted for 97.1% of the total parc – or 34,018,599 units.

Britain’s favourite car types are still the supermini and lower medium segments which account for six in 10 cars in service, at 11,620,733 and 9,256,839 units respectively. Dual purpose vehicles remain a distant third, with 4,619,061 in use but now account for 13.2% of cars on the road, as consumer tastes and demand shift.

www.smmt.co.uk

The Scottish Government have added text to the Sector specific advice section to reflect the position that accompanied test drives can be conducted in Level 3 and below. Further details on mitigations advised are in this section. The Scottish Government understood  there was ambiguity about whether test drives could happen or not and they wanted to amend the guidance to be more explicit on this.  

Covid-19 retail sector guidance update:

Motor vehicle showrooms

Level 4

Additional restrictions apply to motor vehicle showrooms in Level 4 where, by law, customer access to an indoor showroom must be by staggered appointment with, where reasonably practicable, a gap between each appointment. In Level 4, test drives are permitted prior to final completion of the sale. These should take place with one sole occupant (the purchaser) and the car must be fully cleaned before and after. Motor dealers should put in place processes to ensure test drives are conducted in a restricted and responsible manner, for example through the use of appointments or by offering a test as part of the vehicle collection process.

Level 3 and below

Accompanied test drives are allowed to take place within the vehicle with the purchaser and designated motor salesperson. Motor showrooms should put the following mitigations in place to minimise transmission risk:

• Face coverings must be worn in the vehicle at all times (See: guidance on the use of face coverings)
• Vehicles should be well ventilated, by opening windows. Ventilation systems should be set to draw in fresh air and not to recirculate it.  
• There should be a maximum of two people in the vehicle (seller and buyer) and they should sit in front driver seat and back passenger seat to ensure physical distancing
• Hands should be sanitised before and after the drive
• Vehicles should be cleaned before and after use, ensuring that all touch points have been sanitised and wiped clean

The First Minister announced that from Monday 17^th May most of mainland Scotland will move to Level 2, with eased restrictions on hospitality, entertainment, education and sport. You can read her full statement here.

Under Level 2 restrictions:

• up to six people from three households will be able to meet in each other’s homes or gardens without physical distancing – this was the limit previously planned for Level 1 but has now been accelerated for areas in Level 2. People will be encouraged to use their judgment about close physical contact with others
• up to six people from three households will be able to meet indoors in places such as pubs, cafes and restaurants, while up to eight people from eight households will be able to meet outdoors
• pubs and restaurants will be able to serve alcohol indoors until 10:30pm in two-hour booked slots
• venues including cinemas, theatres, concert halls, music venues, comedy clubs, amusement arcades, casinos, snooker halls and bingo halls will be able to reopen
• events will resume with a maximum capacity of 100 people indoors, 250 outdoors where there is unrestricted standing and 500 for events with seating. Organisers will be allowed to apply to hold bigger events
• outdoor contact sports and indoor group exercise classes will be able to restart
• more than one person will be able to sing during religious services
• amateur performing arts groups will be able to perform outdoors
• colleges and universities will have more flexibility to resume in-person learning

Moray

The new rules will apply to all mainland local authority areas with the exception of Moray, which is experiencing a high and increasing number of Coronavirus cases. As a result Moray is likely to remain in Level 3 for a further period, with travel in and out of the area prohibited other than for permitted purposes. A final decision on this will be made at the end of this week. The Scottish Government is working with Moray Council and Grampian Health Board to reduce case numbers, and will provide financial support for affected hospitality and leisure businesses if Level 3 restrictions do remain in place.

Western Isles, Orkney, Shetland and remote Highland and Argyll islands

As the virus is now sufficiently under control in the Western Isles, Orkney, Shetland and remote Highland and Argyll islands, these communities are expected to move straight to Level 1.

International Travel

From 17 May, anyone entering Scotland from countries on a new international travel ‘Green List’ will not be required to quarantine on arrival, but will have to take a PCR test for COVID-19. The Green List will initially be the same as that in place for England but will be subject to review based on Scotland’s specific needs.

If you arrive from a country on the amber list – which will be the majority of countries – you must self-isolate at home for 10 days, and take two PCR tests during this period.

Turbulent first quarter for UK used car market as sales fall -8.9%

• UK used car transactions fall -8.9% in Q1 2021 with 1,687,755 transactions.
• Monthly performances impacted by lockdowns, but March up on particularly weak 2020.
• Market for used plug-in vehicles stays strong with a 37.9% rise in Q1 transactions.

Tuesday 11 May, 2021 The UK’s used car market declined -8.9% in the first quarter of 2021 according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). Some 1,687,755 transactions took place, with the overall decline driven by large falls in January and February, of -27.1% and -19.4% respectively, as lockdown measures depressed demand and again closed car showrooms nationwide.

March saw the market show signs of recovery with a 32.2% year-on-year rise, amounting to 638,570 cars changing hands, although this compares with a weak March 2020 when the UK entered its first lockdown partway through the month. Compared with 2019, March was still down, -8.4%, and Q1 by -16.5% or 332,389 fewer transactions.

Among the turbulence, demand for used battery electric (BEV), plug-in hybrid (PHEV) and hybrid vehicles (HEV) remained strong in Q1. Buyers were keen to purchase pre-owned ultra-low and zero emissions cars, helped by increased availability and more models available. HEV transactions rose 16.6% to 27,694 units while PHEVs saw a 32.1% uplift to 10,534 units, and BEVs surged 48.3% to 6,564 sales.

However, the combined number of plug-in vehicles traded still represented only 1.0% of the market, up from 0.7% in Q1 2020. This illustrates the scale of the challenge ahead to transition the entire used car arena away from traditional fuels. Petrol and diesel powertrains combined represented 97.1% of all first quarter activity at 1,638,536 units.

Luxury saloons and specialist sports were the only segments to see growth, up 10.3% and 5.4% respectively, with transactions in the mini segment falling the most, down -18.3%. Superminis (31.4% share) were by far the most popular used buy, followed by lower medium (27.2%) and dual purpose (13.1%). Together these accounted for more than 7 in 10 (71.7%) of all cars finding new owners. Black was the number one colour choice, with almost 370,000 transactions, followed by silver/aluminium and blue, while at the other end of the spectrum, 981 pink cars changed hands.

Mike Hawes, SMMT Chief Executive, said, “These figures lay bare the turbulent impact of coronavirus lockdowns on the used car market and, while March’s performance suggests there is some pent-up demand, this is against a weak month last year, so its true extent remains to be seen. The second quarter will see significant growth as last year’s April and May markets were severely limited by lockdown measures. It’s vital that the used market is rejuvenated to help sustain jobs and livelihoods, drive fleet renewal and support environmental progress. With car showrooms open again and the UK coming out of Covid restrictions, the sector can look forward with renewed optimism.”

www.smmt.co.uk

• March UK car output grows 46.6% against Covid hit 2020 when pandemic forced factories to close.
• Monthly performance down -22.8% on five-year March average and Q1 down -4.0% year-on-year.
• Companies continue to wrestle with global supply chain issues, impact of new EU trading arrangements and Covid recovery at home and abroad.
• New SMMT member survey reveals nine-in-ten companies expending additional resource managing UK/EU trade requirements with six-in-ten large firms expecting Covid recovery to take at least six months.

Thursday 29 April 2021 UK car production rose 46.6% in March, the first increase after 18 months of decline, with 115,498 cars manufactured, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT).1 The performance marks one year since the coronavirus crisis caused all UK automotive plants to be shuttered in mid-March 2020, after only 78,767 cars had left factory gates that month. 

Compared with the five-year March average, production was down -22.8%, equivalent to a loss of 34,047 units, and some -32.1% lower than the 2017 record for the month.2 It rounds off a -4.0% decline in the first quarter of 2021 with 306,558 units produced, 12,694 less than a year before.

March output for the domestic market rose 19.4% to 20,269 units with exports also increasing, up 54.1% to 95,229 units. More than eight-in-ten (82.5%) cars were sent overseas in March, with shipments to major destinations rising dramatically compared with 2020 when many markets were already shut before the UK itself entered lockdown.

Exports to the EU, US and Asia were all up in March, by 33.5%, 36.4% and 54.1% respectively. The EU remained by far the number one market for UK made cars, with more than half (51.9%) of all exported cars heading across the channel. Meanwhile, combined output of battery electric (BEV), plug-in hybrid (PHEV) and hybrid vehicles (HEV) amounted to a 21.5% share of all cars produced, up from 13.7% a year before, meaning one-in-five-cars produced in the UK is now alternatively fuelled.

www.smmt.co.uk

In advance of the easing of restrictions coming into effect from 26 April, the Scottish Government have now updated their retail guidance, including checklists, on our website. Please find the link below:

Retail guidance: Coronavirus (COVID-19): retail sector guidance - gov.scot (www.gov.scot)

Also, the  ‘Helping your business to reopen safely’ toolkit is listed below.   This has been developed by the Scottish Government to support businesses across Scotland to reopen safely by providing them with posters and digital assets they can use to promote the latest guidance and regulations to employees and customers.

We encourage you to utilise them in key spaces where staff and the general public can see them. The guidance and regulations promoted in the resources are critical in our combined efforts to enable businesses to reopen safely while minimising the spread of COVID-19.

The campaign toolkit attached includes the following resources:

• 5 posters, covering messaging for both business staff and customers
• 4 social / digital posts
• An A5 leaflet
• A window sticker

Please find the assets below in DropBox format:

• Dropbox – Scottish Government - Reopening Assets – Simplify your life

Moving to Level 3

From Monday 26 April, hospitality venues such as cafés, pubs and restaurants can reopen, along with tourist accommodation. Non-essential retail outlets and close contact services such as beauty salons can also reopen, in addition to indoor attractions and public buildings such as galleries, museums and libraries.

Help and support if your business is affected by coronavirus (COVID-19)

Watch videos and register for the free webinars to learn more about the support available to help you deal with the economic impacts of coronavirus (updated 20 April 2021).

Find business support in Scotland

Find the business support you need, including help and advice for those affected by the

coronavirus pandemic and operating after Brexit

HMRC latest information about financial support schemes available to help you as part of the UK Government’s Plan for Jobs, including the VAT deferral new payment scheme and the Coronavirus Job Retention Scheme (CJRS).

AT deferral – apply now to spread your payments

The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due between 20 March‌‌ ‌and 30‌‌ ‌June 2020 and have been unable to pay in full by 31 March‌‌ ‌2021.

Apply now to spread these payments over a number of months – join by 21‌‌ April‌‌ 2021 to benefit from up to 10 monthly instalments. The sooner you join, the more instalments are available to you.

You can join the scheme quickly and simply online without needing to call HMRC. To find out more information, including the things you need to prepare before joining online, go to GOV‌‌‌‌‌‌‌.UK and search 'VAT deferral'.

You need to apply by 21‌‌‌‌ ‌June‌‌‌‌ ‌2021 at the latest if you want to join the scheme online.

CJRS claims for April

You can now submit your CJRS claims for periods in April‌‌. These must be made by Friday‌‌ ‌14 May.

You can claim before, during or after you process your payroll. If you can, it’s best to make a claim once you’re sure of the exact number of hours your employees will work so you don’t have to amend your claim later.

Check if you and your employees are eligible and work out how much you can claim using our CJRS calculator and examples, by searching 'Job Retention Scheme' on GOV‌‌‌‌‌‌‌‌‌‌.UK.

What you need to do now

1. If you haven’t submitted your claim for March but believe that you have a reasonable excuse for missing the 14 April deadline, check if you can make a late claim by searching 'claim for wages' on GOV‌‌‌‌‌‌‌‌‌.UK.
2. Submit any claims for April no later than Friday‌‌‌‌ ‌14‌‌‌‌ ‌May.
3. Keep records that support the amount of CJRS grants you claim, in case HMRC needs to check them. ‌

You must pay the associated employee tax and National Insurance contributions to HMRC. If you don’t do that, you’ll need to repay the whole of the CJRS grant to HMRC.

The UK Government will continue to pay 80% of your furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June.

In July, CJRS grants will cover 70% of employees' usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages, up to a cap of £1,875.

You will need to pay the difference from July, so that you continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.

CJRS eligibility from May

If you have employees who have previously been ineligible for the CJRS, as they were not on your payroll on 30 October 2020, they may be eligible for periods from 1‌‌ ‌May‌‌ ‌2021 onwards.

From May you will be able to claim for eligible employees who were on your PAYE payroll on 2 March 2021. This means you must have made a PAYE Real Time Information (RTI) submission between 20‌‌ ‌March 2020 and 2 March 2021, notifying HMRC of earnings for that employee.

You and your employees do not need to have benefitted from the scheme before to make a claim, as long as you meet the eligibility criteria. For more information on eligibility, search 'check if you can claim for your employees’ wages' on GOV‌‌.UK.

Changes to CJRS claims for variable pay from May

For periods from 1‌‌ ‌May, when calculating the average wages for employees who are not on a fixed salary, you should no longer includes period of:

• Statutory Sick Pay related leave 
• family related statutory leave 
• reduced rate paid leave following a period of Statutory Sick Pay or family related leave.

However, if your employee was on one of these types of leave for the entire period used to calculate their average wages, then you should continue to include the days and wages related to that date.

For more information on variable pay calculations, go to GOV‌‌.UK and search 'calculate how much you can claim'. 

Frequently asked questions about the CJRS

You can find everything you need to know about the CJRS on GOV‌‌‌‌‌‌‌‌‌.UK by searching 'Job Retention Scheme', but here are some answers to the questions that employers have been asking us recently:

Can I still use the CJRS if I’m starting to re-open my business?

You can continue to use the CJRS if your business is affected by coronavirus. You don’t need to place all your employees on furlough. You can also use the CJRS flexibly to bring your employees back to work for some of their usual hours. You can claim for a portion of the usual wage costs for the hours spent on furlough.

Can I claim a CJRS grant to pay for holiday leave?

If you have furloughed employees because of the effects of coronavirus on your business, you can claim under the CJRS for periods of paid leave they take while on furlough, including for bank holidays. You should not place employees on furlough just because they are going to be on leave. 

If your employee is furloughed for only some of their hours, you can count time taken as holiday as furloughed hours, rather than working hours. This means you can currently claim for 80% of your employee's usual wages when they're on leave.

In line with the Working Time Regulations, if a furloughed employee takes holiday you should make sure you are calculating the correct holiday pay, and not simply continuing to pay the 80% you receive through the CJRS. You may need to top up your employees’ pay to 100% of their normal hourly rate or salary. For more information search 'check if you can claim for your employees' wages' and 'holiday entitlement and pay during coronavirus' on GOV‌‌‌‌‌‌‌‌‌.UK.

As the new tax year starts, the Employer Bulletin 89 has some important information following the Spring Budget and Tax Policies and Consultations for Spring 2021.

There's also information about COVID-19 easements, new products, guidance updates and information for your employees.

This edition of the Employer Bulletin covers updates and information on:

• COVID-19
• UK Transition
• consultation calls and responses
• PAYE
• tax and changes to guidance.

• SMMT analysis reveals around 460 models, 4,650 standard specifications and an almost infinite number of options, giving customers near limitless choice as showrooms reopen.
• Breadth of range highlights vital role of showrooms and staff in helping drivers select the right vehicle for their requirements.
• Vehicle renewal essential for Britain to achieve its green goals, as electric powertrains and more efficient engines deliver -21.7% reduction in CO₂ emissions per average car over past decade.

Monday, 12 April 2021 As showrooms reopen their doors today, consumers will be greeted by a vast choice of the cleanest ever vehicles to suit their needs according to new research by the Society of Motor Manufacturers and Traders (SMMT).

The latest analysis reveals that there are now 462 individual car models available in around 4,650 standard specifications augmented by an almost infinite number of options. With the widest ever choice of zero-emission cars – accounting for one in three available models¹ – consumers will have a near limitless choice of mobility options as lockdown restrictions are eased. Now, they will also be able to tap directly into dealer expertise to identify the vehicle, power source and specification best suited for their needs.

New vehicle uptake is crucial to the UK reaching its emission reduction goals, as older, less efficient cars are taken off the road and replaced by the latest lower emission ones. The average new car in 2020 emitted -21.7% less CO₂ than its 2010 counterpart,² helping the country and the industry meet their respective climate change targets.

Despite the variety available and anticipated consumer demand, the industry has warned that a full recovery by the end of the year remains highly challenging. New car registrations during Q1 2021 were -37.1% down on the average for 2010-2019,³ and for levels to return to ‘normal’ by the end of the year would require keys to a new car being handed over every 12 seconds.⁴ 

With dealerships across Britain having rolled down their shutters on 5 January as part of lockdown, drivers will be rewarded for their patience over the past few months with an exceptional breadth of options that will ensure they can find the right vehicle for their needs. The automotive industry, which supports 864,000 skilled jobs across the country, has weathered a £22.2 billion loss in turnover from new car registrations since March 2020 and hopes the variety of options available will stimulate demand.

Mike Hawes, SMMT Chief Executive, said: “After one of the hardest years in living memory for everyone, reopening showrooms today takes the handbrake off UK Auto. With the widest and greenest choice of cars ever seen, unleashing pent up consumer demand can accelerate the industry’s recovery and that of the economy. As the automotive sector counts the cost of £22.2 billion lost in turnover during the pandemic, we hope today marks the start of that recovery, as well as giving consumers ever more choice for their motoring needs.” 

www.smmt.co.uk

This update from the Scottish Government directs businesses towards the most up to date information on COVID-19.

The Find Business Support website has details of support and guidance for businesses that have been affected by the pandemic.

The most recent Brexit advice and support can be accessed here.

Please see updated guidance for sectors of the economy who rely on shared, self-catering accommodation for work, such as forestry, construction and telephone engineers, which was published today.

***The Scottish Parliamentary pre-election period began on the 25 March and runs until the election to the Scottish Parliament takes place on 6 May 2021. This places some restrictions on the activities of civil servants. Our response to COVID-19 is on-going we are issuing this update to signpost you towards new and essential information***


The Scottish Government’s timetable for easing restrictions has been published. The timetable sets out how and when we plan to lift the current coronavirus restrictions over the coming weeks and months.

Safer workplace guidance is released on a sectoral basis and can be found here.

The NHS Inform coronavirus webpage is the fastest way for people to get the latest health advice and information.

As of 1st April the annual index-linked increases to various employment law rates and allowances have come into effect.

For information on new National Minimum Wage rates, which came into effect a few days earlier on 1 April, please see our recent JEL Alert on this topic.

Likewise, for details of increases to the maximum amounts of compensation that can be awarded in certain claims at Employment Tribunal, JEL Alert in relation to these.

They have detailed below the new rates for other key allowances that have now increased:

• Statutory Sick Pay (SSP) has increased to £96.35 per week for eligible employees. Further information regarding who is eligible for SSP and how long it is payable for can be found at statutory sick pay factsheet.

• Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay, Statutory Adoption Pay and Statutory Bereavement Pay have all increased to £151.97 per week. You can find more information here statutory payment factsheet.

• The cap on a week’s pay for a statutory redundancy payment has increased to £544 per week. This means that the maximum statutory redundancy payment is now £16,320. (This is also the maximum Basic Award in an unfair dismissal claim.) More information is set out in their termination payment factsheet

Scottish car retailers have been told that they can resume unaccompanied test drive provision to boost their retail recovery from April 5.

The Scottish Motor Trade Association (SMTA) confirmed that dealers will be able to allow customers access to a car, prior to a purchase, following confirmation from the Scottish Government today (April 1).

Responding to an enquiry from SMTA chief executive Sandy Burgess, the Scottish Government’s head of retail policy, Catherine Brown, revealed details that were set to be updated in official guidance posted online ahead of showrooms re-opening (for schedules appointments) on Easter Monday.

In response to the question ‘Can a potential buyer take a car for a test drive before buying it?’, the guidance states: “Test drives are permitted prior to final completion of the sale.

“Test drives should take place with one sole occupant (the purchaser) within the vehicle and the car must be fully cleaned before and after.

“Motor dealers should put in place processes to ensure test drives are conducted in a restricted and responsible manner, for example through the use of appointments or by offering a test as part of the vehicle collection process.”

Burgess had appealed to the Scottish Government for clarification of its policy on test drives ahead of the Easter Bank Holiday weekend.

He said that SMTA members were “raring to go” and keen to get their plans and any required protocols into place in advance of the weekend.

He warned government officials that some traders – not SMTA members – had already started advertising they are advertising they are open.

But he added: “I am passionate about our members abiding by the rules.”

Read the full article on AM Online

• UK engine manufacturing output declines -20.5% in February with 170,271 units built.
• Production for domestic and overseas markets falls -13.1% and -25.9% respectively.
• Engine output has fallen by a quarter so far in 2021, down to 338,562 units.   

Mike Hawes,SMMT Chief Executive, said, “Now one year into the coronavirus pandemic, UK engine manufacturers have seen their output significantly affected. With subdued car markets at home and abroad, new customs processes with the EU, and global supply chain issues impacting the sector, this month’s figures are further evidence of the challenging circumstances. There is, thankfully, a roadmap out of the pandemic in this country but, with the majority of our engines exported, we need to see global markets on the road to recovery before UK manufacturers can look forward with confidence.”

When Arnold Clark chief executive Eddie Hawthorne openly conceded that he had initially felt the COVID-19 crisis would be “over by Easter”, it was clear that nobody in the sector could have imagined being in lockdown 12 months on.

Even the sector’s most pessimistic car retailers would have been hard-pushed to predict that they would be waiting once again for showroom reopenings as the UK reached the first anniversary of Prime Minister Boris Johnson’s announcement that retail would close its doors on March 23, 2020.

But as Vertu Motors’ Robert Forrester took to twitter this morning to mark a year passing since “the worst day” in his career, the sector is also able to acknowledge an acceleration in retail evolution which has future-proofed many for challenges that were already on the way.

And the sector has also been able to acknowledge the role that Government’s fiscal measures, some OEM partners’ swift support and suppliers efforts to mitigate costs have had on their business.

At the beginning of March last year Marshall chief executive Daksh Gupta decalred in an AM News Insight report that COVID-19 coronavirus posed the ‘biggest threat’ to UK car retailers.

Speaking at AM Live Virtual 10 months on, Gupta said he was proud to have been part of a team who decided to close its car retail business ahead of Prime Minister Boris Johnson’s lockdown announcement a year ago.

“To make that call is pretty brave, to shut 132 operations with over 4,000 people. I was really proud we’d done that,” he said.

Gupta also told AM Live Virtual how the business started tracking business decisions in minutiae after COVID-19 struck.

He begun chairing twice weekly executive committee meetings, on a Tuesday and a Friday, and took minutes himself – logging every action.

Gupta said: “When you capture the action, you know who’s doing what and when by. We’ve kept that going and we are now on over 500 actions. From a business continuity perspective that was key.”

Marshall has weathered the COVID storm in impressive style.

Earlier this month Gupta told AM that the group would consider repaying its CJRS furlough support after reporting 2020 financial results which showed revenues down by 5.3% to £2.15bn as pre-tax profits rose 3.7% to £20.4m.

Nonetheless, Gupta is keen to get back to trading and back out into his dealership sites.

While he said video conference meetings had proven to be efficient, he said: “I’m not a person that likes to sit behind a desk.”

For Hawthorne, the COVID experience has been a sobering process.

As lockdown drew to an end in June last year, Hawthorne admitted in an interview with AM that he initially felt that the COVID-19 coronavirus crisis would be “over by Easter”, later conceding that it had fundamentally changed car retail.

Hawthorne said that his first reaction had been that the health crisis would have “all blown over in two to three weeks” but asked “how naive was I?”

Last week Hawthorne suggested that Arnold Clark would be taking a pragmatic approach to its return from the latest ‘Lockdown 3’ restrictions, stating that the coronavirus pandemic would not simply “go away” in mid-April.

Hawthorne told AM that the trend of the COVID-19 pandemic across the UK has been mirrored among the employees of the top AM100 retail group, with “hundreds of staff” self-isolating or affected directly by COVID during January spike in infection rates.

“As of today, that number has come down to 28, so things are looking up,” he said.

Car retail appears to have adapted well to COVID-19, with an race to adopt new digital retail methods and consumers becoming more open to online purchasing to ensure driving sales to a point where Auto Trader could report car sales volumes around 90% of their seasonal norm in early March.

However, Hawthorne and Gupta remain among the business leaders who are well aware of the toll the pandemic has had on the car retail sector and its workforce.

“It doesn’t matter whether you’re a CEO general manager or working elsewhere in the business – everybody will have had a very difficult year,” said Gupta.

Article Credit: AM Online

Mike Hawes, SMMT Chief Executive, said, "The decision to slash the Plug-in Car Grant and Van & Truck Grant is the wrong move at the wrong time. New battery electric technology is more expensive than conventional engines and incentives are essential in making these vehicles affordable to the customer.

Cutting the grant and eligibility moves the UK even further behind other markets, markets which are increasing their support, making it yet more difficult for the UK to get sufficient supply. This sends the wrong message to the consumer, especially private customers, and to an industry challenged to meet the Government’s ambition to be a world leader in the transition to zero emission mobility.” 

In a Statement to Parliament yesterday, the First Minister set out an indicative timetable for the re-opening of parts of the economy over the next two months.

The indicative timetable includes:

From 2 April:

• A lifting of the ‘Stay at Home’ requirement and replacing it with a ‘Stay Local’ message (retaining the current, local authority-based travel restrictions for at least a three-week period)

From 5 April:

• reopening of non-essential ‘click and collect’ retail
• extending the list of retail permitted to include garden centres (indoor and outdoor), key cutting shops, mobility equipment shops, baby equipment shops, electrical repair shops, hairdressers and barbers (with shopfronts – not mobile services) by appointment only, homeware shops and vehicle showrooms (appointment only) and forecourts

From 26 April:

• travel within all of mainland Scotland permitted (subject to other restrictions that remain in place)
• remaining shops can reopen and mobile close contact services can resume
• gyms can reopen for individual exercise
• tourist accommodation to reopen (self-catering accommodation to be restricted in line with rules on indoor gathering)
• work in people’s homes to resume
• driving lessons to resume
• weddings and funerals for up to 50 (including wakes and receptions with no alcohol permitted)
• libraries, museums, galleries re-open
• outdoor hospitality to open till 22:00 with alcohol permitted. Indoor hospitality permitted without alcohol and closing at 20:00

From 17 May:

• further re-opening of hospitality: bars, pubs, restaurants and cafes can stay open until 22:30 indoors with alcohol permitted and 2 hour time-limited slots and until 22:00 outdoors with alcohol permitted
• adult outdoor contact sport and indoor group exercises can resume
• cinemas, amusement arcades and bingo halls can re-open
• small scale indoor and outdoor events can resume subject to capacity constraints (to be confirmed following stakeholder engagement)
• non-professional performance arts can resume outdoors

June

The First Minister said it is too early to give specific dates beyond May. However, understanding the need for people and businesses to plan, from the start of June, it is hoped that Scotland can move back to Level 1 of the Strategic Framework, allowing further relaxation across all areas of the economy and society, while still applying physical distancing and other non-pharmaceutical interventions and the FACTS guidance.

A move to Level 0 is hoped to be able to take place from the end of June.

Business Support

The last four-weekly Strategic Framework Business Fund payment of up to £3,000 will be paid on 22 March, as scheduled and grants of up to £7,500 for retailers and up to £19,500 for hospitality and leisure businesses will be paid in April to help businesses re-open progressively. These one-off re-start grants will replace ongoing SFBF payments and will provide more money up front to help with the costs of re-opening. Eligible businesses must have applied to the SFBF by 22 March in order to receive these payments.

Further Information

Link to the full indicative timetable https://www.gov.scot/publications/coronavirus-covid-19-timetable-for-easing-restrictions/pages/timetable/

Link to further information on support for businesses https://www.gov.scot/publications/coronavirus-covid-19-timetable-for-easing-restrictions/pages/support-for-business/
Link to the First Minister’s statement https://www.gov.scot/publications/coronavirus-covid-19-update-march-16-2021/
Link to News Release https://www.gov.scot/news/timetable-for-further-lockdown-easing/

The Finance and Leasing Association (FLA) has predicted a “strong recovery” from the consumer car finance sector after volumes declined by 35% as COVID-19 ‘Lockdown 3’ stalled trading in January.

Geraldine Kilkelly, the FLA’s director of research and chief economist, said that the impact of the latest coronavirus restrictions on the car retail sector’s ability to trade had “not been as severe” as that experienced in H1 2020 she reported the latest finance data.  

Kilkelly said: “The impact of the latest UK-wide lockdown restrictions has not been as severe as the first lockdown introduced last March with many dealerships able to offer click and collect or deliver services. 

“The value of new business in the consumer car finance market is expected to fall by 16% in Q1 2021 as a whole.” 
However, predicting a strong recovery for the sector, Kilkelly added: “Our latest research suggests that once showrooms re-open there will be a strong recovery in the consumer car finance market, with the value of new business expected to grow by 17% in 2021, and a further 12% growth forecast for 2022.” 

The FLA reported that the consumer new car finance market had seen a 38% fall in new business volumes in January (to 36,134) compared with the same month in 2020 as the consumer used car finance market reported a 34% fall (to 87,557).

The value of advances across both new and used declined by 31% during the month, it said, finishing the month’s trading at £1.99 billion.

Article Credit: AM Online

The Government has set out the next steps towards its ban on the sale of new internal combustion engine (ICE) cars and vans in 2030, starting with a consultation this year on which hybrid vehicles will remain on sale from 2030 to 2035.

When the Government announced the phase-out dates, it said that only hybrid cars and vans that could drive a ‘significant distance’ with no carbon coming out of the tailpipe, would remain on sale until 2035.

The consultation will determine the definition of ‘significant zero emission capability’.

The Government will also consider a very limited range of derogations to the phase out dates for specialist vehicles, including military service and emergency vehicles, and for parts of the market which may need further time to transition, such as small volume manufacturers.

It said that it will “consult on these derogations in due course”.

The consultations will be followed by a delivery plan this year which will “set out major milestones towards the phase out dates and committed spending and regulatory measures”.

The Government said it will monitor progress against the plan and report publicly on an annual basis, with a full a review of progress towards the phase out dates taking place by 2025.

Hydrogen's potential

In publishing its response today to the consultation on ending the sale of new petrol, diesel and hybrid cars and vans, the Government reiterated that it takes a “technology neutral approach” on how the transition to zero emission vehicles (ZEVs) will be achieved.

“While it is true that battery electric vehicles (BEVs) dominate the current ZEV market, we recognise the potential of hydrogen as another solution for zero emission transport, particularly for heavier road vehicles,” it said.

The Government will discuss the potential role for hydrogen in decarbonising the transport sector, including road transport in its delayed transport decarbonisation plan, which is due to be published this year.

A separate hydrogen strategy, also expected this year, will set how the UK hydrogen economy will be developed, including how the Government will work with industry to create 5GW of low carbon hydrogen production for use across the economy by 2030.

The Government has said it will consult the heavy goods vehicle (HGV) industry before making a decision on bringing in a diesel ban for those vehicles from 2030.

Courtesy www.smarttransport.org.uk

HMRC is offering live webinars in March to explain the upcoming rate rises, including when exactly you should start paying the new rates.

Choose a date and time to attend 

Fewer vehicles will need an MOT during April and May this year.

This means garages will be quieter and looking to make up the shortfall of work.

Last year, we helped you to encourage motorists to come in early and ‘Beat the Rush’.

We now want to help you promote your other safety checks to motorists, like a health check or service, during the quieter months.

Whatever your essential journey, make it SAFE

As the schools return, some people may need to use their vehicles more regularly.

So, we’ve developed a campaign to help motorists to check their vehicle is safe before they set off.

We’re recommending motorists do four basic things:

Service or health check if needed

Air in tyres

Fill up screenwash

Examine lights and tyre tread

As part of the campaign, we’ll be promoting the value of a getting a service or health check at a local garage.

Working together: free toolkit for communicating with your customers

Our research shows 95% of customers trust you.

So, to help you manage the shortfall in MOT work, we’ve developed another toolkit to help you reach out to customers who need to drive. It’s designed to help you contact them to:

• offer a service or health check for peace of mind
• provide information about how to do simple vehicle safety checks
• ask them to consider going back to their original MOT date

When is this happening

The ‘Whatever your essential journey, make it SAFE’ campaign begins today, Friday 5 March 2021.

We will encourage motorists who need to drive to carry out the SAFE checks and promote the value of getting professional services from a local garage.

3 easy steps to get involved with the campaign

1. Download the toolkit and images below
2. Use the templates for social media and email messages to your customers – or create your own
3. Keep an eye on your emails as we will contact you as the campaign progresses

Here's the SAFE vehicle safety checks toolkit (MOT garages) (click link to download)

There are several images available to download - click here
Promoting vehicle safety checks to your customers who need to drive - Matters of Testing (blog.gov.uk)

Extension to the Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021.

The UK Government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021.

For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.

You will need to continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. This means, for periods between July and September, you will need to fund the difference between this and the CJRS grants yourself. You can also top up wages above the 80% if you wish, but you are not required to do so.

You must continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from your own funds.

CJRS eligibility from May

For periods from 1‌‌ ‌May 2021 onwards, you will be able to claim for eligible employees who were employed by you and on your PAYE payroll on 2 March 2021. This means you must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying us of earnings for that employee.

You and your employees do not need to have benefitted from the scheme before to make a claim, as long as you meet the eligibility criteria.

For more information on the extension to the scheme and the support available, search 'Job Retention Scheme' on GOV‌‌‌.UK.

• UK engine manufacturing output declines -29.3% in January with just 168,291 units built.
• Production for domestic and overseas markets falls -27.2% and -30.8% respectively.
• 13^th consecutive month of decline as automotive sector looks towards March budget for support.

Mike Hawes, SMMT Chief Executive, said, “It has been an extremely challenging start to the year for UK engine manufacturers who have seen their output severely dented by the ongoing pandemic, a subdued market, and border friction following agreement of the UK/EU trade deal. While there is a roadmap out of lockdown, the sector still faces multiple headwinds and so the Chancellor’s Budget is an opportunity to enhance the industry’s competitiveness and ensure that the UK’s skilled engine building workforce is part of the future of the sector as it transforms to electrified powertrains.”

Courtesy www.smmt.co.uk

SMMT News Release:

Mike Hawes, SMMT Chief Executive, said, “ The announcement today confirming E10 petrol will be available for motorists from this September is another step towards the 2050 net zero target. Its introduction is significant in that it assists with the decarbonisation of the existing UK car parc as well as those new cars powered by petrol engines. 

“Vehicle manufacturers have been preparing for its introduction for many years so drivers can be reassured that it is compatible with most cars currently on the road. Together with the introduction of new electrified vehicles, the range of which is accelerating rapidly, this new fuel will help reduce the overall emissions of road transport for many years to come.”

Scotland’s phased and careful approach to easing lockdown restrictions while continuing to suppress Coronavirus (COVID-19) has been outlined by the First Minister.

The updated Strategic Framework sets out the six tools the Scottish Government will use to restore, on a phased basis, greater normality to our everyday lives.

The immediate priority will continue to be the phased return of education, building on the return of some pupils to school yesterday. On the basis that progress in suppressing the virus and vaccinating key groups remains on track restrictions would be eased in the following order:

• the next phase of school returns with the rest of the primary school years, P4 to P7, and more senior phase secondary pupils back in the classroom for part of their learning and the limit on outdoor mixing between households increasing to four people from a maximum of two households

• the stay at home restriction to be lifted and any final school returns to take place. Communal worship to restart in limited numbers mindful of the timing of major religious festivals. This phase would also see the re-opening of retail, starting with an extension of the definition of essential retail and the removal of restrictions on click-and collect

• return to a levels approach with all of Scotland moving to at least level 3, with some possible adjustments. This could mean that from the last week of April that we would expect to see phased but significant re-opening of the economy, including non-essential retail, hospitality and services like gyms and hairdressers

The First Minister said, while lockdown measures have had a positive impact, suppression of the virus is still heavily reliant on restrictions due to high transmissibility and case numbers. However, it is hoped that vaccination will become the main tool for suppressing the virus once the vast majority of the adult population has received at least one dose.

The Framework sets out:

• a progressive easing of the current level 4 restrictions that apply across most of Scotland at intervals of at least 3 weeks - along with changes nationally on education and care home visiting - with the immediate priority being the continued return of schools. The first easing started yesterday with the partial return of schools.
• A move – subject to the data allowing it - fully back to a levels system from the last week in April, when it would be expected to see phased but significant re-opening of the economy, including non-essential retail, hospitality and services like gyms and hairdressers. More detail will be set out in mid-March on the indicators that will guide decisions on levels, as well as on any revision to the content of each level - taking account of experience and sectoral views - and the order in which we expect those parts of the economy that have been restricted to start reopening.
• Ongoing financial support, which is set out in the Framework, continuing to be available to businesses. This includes the ongoing commitment to fund the Strategic Framework Business Fund and to provide Level 4 payments for an additional month once businesses are moved down a level. These proposals are contingent on receipt of additional consequentials from the UK Government.

HMRC is providing you with more information on the financial support schemes available to help you through the COVID-19 pandemic, including updates on deferring VAT and claiming for furloughed staff through the Coronavirus Job Retention Scheme (CJRS)

VAT deferral new payment scheme – join from 23‌‌ February

If you deferred paying VAT due in the period from 20‌‌ March to 30‌‌ June‌‌ 2020, you should pay it by 31‌‌ ‌March‌‌ ‌2021 if you can.

If you can’t afford to pay by 31‌‌ March‌‌ 2021, you can join the VAT deferral new payment scheme and pay your deferred VAT over a longer period.

The online service will open on 23‌‌ February‌‌ 2021 and close on 21‌‌ June‌‌ 2021. You can make up to 11 monthly instalments, interest free. The earlier you join, the more months you can spread your payments across.

You can join the scheme online without the need to call – search 'Pay deferred VAT' on GOV‌.UK for more information and to join quickly and simply online when the scheme opens.

If you need more time, go to GOV‌.UK and search 'if you cannot pay your tax bill on time'.

January CJRS claims

Thank you if you submitted your January claim by the deadline of 15‌‌‌‌ February.

If you didn’t, we may still accept it if you have a reasonable excuse for not claiming by the deadline, such as you were self-isolating (and no-one else could make the claim for you) or had an unexpected stay in hospital that prevented you from completing it.

If your reason means you can apply to claim late, please do so as soon as you’re able to. For more information on reasonable excuses, go to GOV‌‌.UK and search 'claim for wages'.

You can now make February CJRS claims

You can now submit your claims for periods in February. These must be made by Monday‌‌ ‌15 March.

You can claim before, during or after you process your payroll. If you can, it’s best to make a claim once you’re sure of the exact number of hours your employees will work so you don’t have to amend your claim later.

Check if you and your employees are eligible and work out how much you can claim using our CJRS calculator and examples, by searching 'Job Retention Scheme' on GOV‌‌‌‌‌.UK.

What you need to do now

1. If you haven’t submitted your claim for January but believe that you have a reasonable excuse for missing the deadline, check if you can make a late claim by searching 'claim for wages' on GOV‌‌‌‌.UK.
2. Submit any claims for February no later than Monday‌‌ 15‌‌ March.
3. Keep records that support the amount of CJRS grants you claim, in case HMRC needs to check them. ‌

• SMMT signs Armed Forces Covenant, reaffirming importance of recruitment and retention of veterans and service leavers for automotive industry.
• 55 SMMT member companies already working with armed forces community, with engagement up as companies look to secure talent.
• Automotive sector and veterans rally during Covid crisis, deploying vehicle fleets and transporting PPE to hospitals and vulnerable communities.

SMMT press release: Tuesday 23 February, 2021 The Society of Motor Manufacturers and Traders (SMMT) has signed a ground-breaking Armed Forces Covenant, pledging its commitment to advocate for recruitment and retention of ex-military personnel across the automotive industry. The pledge commits SMMT to promoting best practice, fostering a culture and ethos of inclusivity, and making the commercial case for automotive companies to also sign up to the Covenant. The signing reaffirms the work done through Mission Automotive, an initiative dedicated to placing ex-servicemen and women in jobs across the sector, set up in partnership with the Royal Foundation of the Duke and Duchess of Cambridge, the forces’ charity Mission Motorsport, and supported by the Ministry of Defence.

Making the process as easy as possible, SMMT has helped members create tailored engagement programs, guiding and aligning their interactions with the Armed Forces community across brand, corporate and HR areas to support their own business strategies. Some 55 SMMT member companies already work with the armed forces community, employing veterans, service leavers and their spouses across all parts of the automotive supply chain, from cars to commercial vehicles, across design, manufacturing, repair and through to retail and logistics.

As the UK looks to secure battery gigafactory investment ahead of the 2030 phase-out of sale for new conventional petrol and diesel engine cars and vans, the automotive industry hopes to help fill the skills gap with service leavers, offering opportunities for development and mapped-out career paths which translate military skills into qualifications required by the sector. Many service personnel are uniquely suited to this industry, with experience of high voltage equipment and other technologies. Veterans, therefore, are potentially some of the best candidates for roles working in electric and hydrogen vehicle manufacturing and engineering.

The past year tested the auto industry’s resilience as the country battled coronavirus, with the sector keeping essential services and key workers moving, supporting the vulnerable and even manufacturing ventilators. Many automotive companies worked with veteran volunteers to redeploy vehicle fleets across the country to transport medical supplies and PPE.

www.smmt.co.uk

Mike Hawes, SMMT Chief Executive, said, “We urgently need more charging points to accelerate our transition to electric motoring, so this announcement is welcome and a step in the right direction. As we race towards the phase out of sales of new petrol and diesel cars and vans by 2030, we need to accelerate the expansion of the electric vehicle charging network. An electric vehicle revolution will need the home and workplace installations this announcement will encourage, but also a massive increase in on-street public charging and rapid charge points on our strategic road network. This will give drivers the confidence that recharging will become as easy as refuelling.”

Important technical update from DVSA:

Due to a technical issue with OCRS Customer Reports they will be unavailable while we work to fix the problem. We expect this to be around 8 weeks. 

You can still access the following TOP services:

• vehicle test history
• encounter report
• top up your Pre-Funded Account (PFA)
• book an annual test at a Goods Vehicle Test Station (GVTS) 

Our enforcement work will continue whilst OCRS is unavailable. Enforcement staff will continue to use additional targeting information, such as encounter history. 

We are sorry for any inconvenience and will inform you when the service is back up and running.

• Used car transactions fall -14.9% in 2020 with 6,752,959 units changing hands as coronavirus lockdowns curb activity.
• Weak end to year with Q4 transactions down -6.2% to round off a turbulent 2020 for the UK used car market.
• Alternatively fuelled vehicle used transactions rise 5.2% to 144,225 taking 2.1% market share.
• News comes as industry calls for reopening of automotive retail as soon as possible to help protect jobs and economy.

Tuesday 9 February, 2021 The UK’s used car market declined in 2020, down -14.9% according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). 6,752,959 used car transactions took place, 1,182,146 fewer than in 2019, making 2020 the lowest performing year since 2012 as lockdown measures to tackle the coronavirus pandemic and turbulent consumer and business confidence dented sales.¹

Despite used car transactions increasing 3.7% in October, a fourth consecutive month of growth, the combination of new lockdowns and tougher restrictions across the UK later in the year saw activity tail off, with declines of -18.3% and -4.2% in November and December respectively. Combined Q4 transactions fell by -6.2% to 1,693,138, rounding off a tough year for the sector.

Alternatively fuelled vehicles (AFVs) bucked the trend, however, with 144,225 of these models sold during the year, an increase of 5.2%, with their market share rising to 2.1%. Battery electric vehicles (BEVs) saw their transactions increase by 29.7% to 19,184 units, but still only a fraction of all activity at 0.3%. The market for hybrids (HEVs) also rose, by 4.7%, while demand for plug-in hybrids (PHEVs) fell by -5.0%. Used diesel and petrol car transactions also fell, by -15.5% and -15.2% respectively, yet combined were still equivalent to some 6.6 million units finding new owners.

Last year all used car segments experienced declines, however superminis remained the most popular choice with 2.2 million units purchased, accounting for 32.0% of all transactions. Lower medium cars were the next most traded segment, with 1.8 million sales to take 27.0% market share. Luxury Saloon (-5.8%), dual purpose (-7.2%) and specialist sports (-8.4%) saw more modest declines with a combined 1,084,504 transactions.    

Courtesy SMMT

From HMRC:

January claims – submit now

Thank you if you have submitted your January furlough claims already. If you haven’t submitted your claims for January, you must do so by the deadline of Monday‌‌ ‌15 February.

As a reminder, the UK Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. You and your employees do not need to have benefitted from the scheme before to make a claim, if you and your employees meet the eligibility criteria.

What you need to do now

1. Check if you’re eligible and work out how much you can claim using our CJRS calculator and examples, by searching 'Job Retention Scheme' on GOV‌‌‌‌.UK.
2. Submit any claims for January no later than Monday‌‌ ‌15 February.
3. Keep records that support the amount of CJRS grant you claim, in case HMRC needs to check them. ‌

BMW UK has named its highest performing dealers over the past 12 months with Douglas Park Hamilton taking the top gong.

For 2020, the annual Retailer of the Year Awards were held virtually for the first time and ‘celebrated the leadership, aptitude and adaptability of the BMW retail network, who brilliantly served new and returning customers throughout 2020’, BMW UK said.

‘Retailer of the Year 2020’ went to Douglas Park Hamilton after it impressed across a range of categories including aftersales, marketing and financial services.

Graeme Grieve, BMW Group UK CEO, said: ‘It’s important that we recognise the incredible efforts of our retail teams after such a challenging year.

‘We launched a host of new and enticing models – including the BMW 4 Series Coupe – and our retailers rose to the challenge. Our dedicated teams ensured BMW customers received an outstanding experience, whether their interaction was face-to-face in the showroom, or virtual during lockdown periods.

‘I’m always proud of our retailers but over the past year they’ve demonstrated how important they are to the automotive industry and our customers.’

David McBennett, head of business, Douglas Park Hamilton, said: ‘Everyone at Douglas Park BMW is delighted with the recognition of our achievements, winning not only four category awards but also the ultimate accolade of BMW Retailer of the Year for the second time.

The Institute of the Motor Industry (IMI) chief executive Steve Nash and newly-appointed president Jim Saker have said that the “fuel of skills” among car technicians is needed to power Government’s 2030 electric vehicle (EV) ambitions.

In an open letter responding to last November's announcement by Prime Minister Boris Johnson that the sale of non-electrified diesel or petrol powered cars would be banned in 2030 – with a ban on hybrids due to be introduced in 2035 – the two IMI leaders aired their concerns about a lack of necessary skills in the sector.

“Compressing the transition timescale means we must now accelerate the detailed implementation,” they said, adding that “serious injury or death is a very real prospect” without the rapid roll-out of the correct training for automotive technicians.

The letter said: “Yes, we have Electricity at Work regulations, but right now only 5% of the technicians working in garages and dealerships are appropriately qualified to work on these vehicles. This is the real context to the government’s Green Plan.

“Unless we start to discuss these issues, that plan will be compromised and – much more importantly – the UK won’t meet its net zero targets and we’ll imperil our next generation’s future.”

The IMI’s latter said that it was “inspiring” to see how quickly automotive manufacturers were adapting their model ranges to transition towards hybrid and EV, acknowledging that consumers had begun to respond enthusiastically.

But the IMI added: “Anyone who wants to make a green choice, whether it’s full EV or hybrid, needs to know that they can access technicians able to work safely on these vehicles.

“Right now, though, the chances of finding qualified technicians are reducing.

“Today 5% of the UK automotive workforce – between 13,000 and 20,000 technicians – are working on around 380,000 plug-in cars and vans.

“Ramp-up the numbers based on the government’s Green Plan and the capacity is simply not there to support the transition the government wants.”

According to IMI data, some 6,500 certificates for working on EVs were issued last year with the minimum required qualified technicians potentially reached by 2030 had that rate had continued.

However, in Q2 2020 certification numbers were down 85% compared to the same period in 2019, it said.

The letter, penned by Nash and regular AM contributor Saker, said: “What’s the answer? As a country, we urgently need a concerted, ongoing workforce development strategy.

“The automotive workforce is already behind in the skills required for these emerging technologies – through no fault of its own.

“Embattled employers need support and incentives to get more of their technicians trained, and to re-ignite recruitment and apprenticeship plans.

“Electric is the right choice – for the environment, for jobs, for our children’s futures. But like all revolutions, this one requires fuel. The fuel of skills. We have a generation that’s wondering just where their future might lie.”

In concluding their letter Nash and Saker issued an appeal from the IMI. They want the following actions to be taken by the automotive aftersales sector:

• Let’s make it possible for anyone excited by the electric revolution to acquire the skills they need to become part of it.
• Let’s enable employers to enter 2021 with the confidence to train and retrain existing employees.
• Let’s give employers the tools – and, yes, the funding – to develop fresh, hungry talent through exciting apprenticeship opportunities.

Measures to encourage car buyers to opt for electric models ahead of the Government’s planned 2030 ban on the sale of new petrol and diesel cars are expected to be introduced ahead of the cut-off date.

Dealers should expect restricted supply of ICE models in the lead up to 2030, with Government intervention likely to include punitive taxation on higher-emitting models.

Speaking at the Westminster Energy, Environment & Transport Forum policy conference for low emission vehicles in December, Katie Black, joint head of the Office for Low Emission Vehicles (OLEV) at the Department for Transport (DfT), indicated that the Government wants to avoid a situation where car makers are “selling the maximum amount of petrol and diesel cars right up to the 2030 milestone”.

She said: “We do see it as a risk, and we will be looking publicly at ways to mitigate that. What you probably want is a gradual phase out, a gradual shift across the fleet. And we’re looking at how a regulatory regime could support that.”

The finer details of the Governments 2030 strategy is expected to be published in the spring.

Read the full story at AM online

Brussels, 03/02/2021
 

CECRA welcomes the Portuguese national trade association, ARAN as an active member and FinMobility as a goodwill member.
 
ARAN’s new President, Rodrigo Ferreira da Silva, said “our board agreed to apply for a membership within CECRA and as President I welcome this decision as it is very significant, with an ever more challenging future for our sector, only together we grow stronger”.
 
CEO, Head of Brussels Office of FinMobility, Pasi Moisio said “we are willing and committed to join and strengthen the cooperation between CECRA and FinMobility. FinMobility has several pillars of mobility advocacy (passenger and freight transport, logistics, taxi sector, automotive, infrastructure, driving schools). I am sure that CECRA will also benefit from this teamwork”.

ARAN’s mission is to promote, defend and support the interests of the activities within the automotive sector. It fosters the spirit of solidarity and mutual support among its members, as well as their development. ARAN develops skills and promote activities that boost the interests and the professional development of its members.
FinMobility is a leading voice in the EU for the Finnish employers’ and business organisations in the mobility sector. FinMobility represents 13.500 companies employing 100.000 people. FinMobility cooperates widely and transparently with the EU-institutions, Brussels-based representatives of transport and mobility sectors, business organisations and authorities of the EU member states. We also participate in the activities of our members’ umbrella organisations in the EU.

Mini UK has revealed the winners of its 2020 Retailer Awards in a virtual ceremony.

The brand’s retailer awards recognise talent across its 131-strong UK dealer network, with the 2020 running marking ‘exceptional retailer dedication and talent after a rollercoaster year of exciting new products and defying market challenges like no other’.

‘Retailer of the Year’ 2020 was awarded to Grassicks Mini, Perth, for the second time, after first lifting the trophy for their performance in 2017.

Mini said Grassicks were top performers across nine key areas, including new car sales, used car sales (for which they were also category winners), profitability and customer satisfaction.

Grassicks scoops Mini Retailer of the Year 2020 in brand's dealer awards ceremony – Car Dealer Magazine

To support the 2030 ban on pure petrol and diesel vehicles EV charging points need to be rolled out five times quicker, according to one think tank.

A report published by Policy Exchange has said the UK will need 400,000 EV charging points by the 2030 cut-off date – some five times more than the 35,000 points already installed.

To reach this total, the annual rate at which new chargepoints are being installed must increase from around 7,000 over the past three years to 35,000 over the next decade.

It also urged the government to avoid ‘charging blackspot’ in small towns and rural areas.

Researchers recommended that the government should issue contracts to private firms to install chargepoints in areas where they are sparse.

This would mark a switch from the existing policy of offering grants, and would be similar to offshore wind farm auctions.

Under the proposal, a price cap would be introduced for chargepoints that received government support, to avoid operators exploiting local monopolies.

The report called for local authorities to be given Department for Transport funding for dedicated teams tasked with boosting rollout in residential areas.

Read the full article at www.cardealermagazine.co.uk 

• UK engine manufacturing down -27.0% in 2020 to just over 1.8 million units.
• Production for domestic and overseas markets falls -23.4% and -29.1% respectively.
• December saw production fall -7.9% to round off bleak year for sector.

Mike Hawes, SMMT Chief Executive, said, “2020 was a tough year for UK engine manufacturers with the coronavirus pandemic chiefly responsible for the fall in output. That said, factories still turned out more than 1.8 million internal combustion engines, with the majority of these exported globally. This reinforces how important it is that, in the increasingly rapid transition to electrification, the UK’s skilled engine manufacturing workforce is not left behind, as they should be a critical component in positioning the country as a competitive place to produce ultra-low and zero emission vehicles.”

Courtesy www.smmt.co.uk

• UK car manufacturing output falls -29.3% in 2020 to 920,928 units, the lowest total since 1984.
• Production for UK and overseas markets declines -30.4% and -29.1% but more than eight in 10 cars still head abroad.
• Latest independent outlook forecasts car output to reach one million units in 2021, but much depends on Covid recovery, market confidence and new cross-channel rules.

Thursday 28 January 2021: UK car production declined -29.3% in 2020, to 920,928 units, according to the latest figures issued today by the Society of Motor Manufacturers and Traders (SMMT). December, output was down -2.3% to 71,403, with some firms affected by border closures and thus component supply issues. This rounded off a dreadful year, the worst since 1984 for UK car makers, with the pandemic chiefly responsible for the decline.¹ Manufacturing operations were severely disrupted throughout 2020, with lockdowns and social distancing measures restricting factory output,  Brexit uncertainty continuing until Christmas Eve and depressed market demand in key export destinations.

Production for overseas buyers fell -29.1% in the year, to 749,038 units, while output for the UK also fell in double-digits, down -30.4% to 171,890. Even amid the global pandemic, exports continued to drive UK car manufacturing, however, with more than eight in 10 of all cars made shipped overseas. Reinforcing the importance of avoiding ‘no deal’ tariffs with Europe, the EU remained the UK’s biggest export destination, taking a 53.5% share, despite volumes falling -30.8% to 400,460 units.

Elsewhere, trade with most of the UK’s other key export partners declined in line with the tough market conditions resulting from the pandemic. Shipments to the US, Japan and Australia all fell, down -33.7%, -21.6% and -21.8% respectively. Exports to China, however, ended the year up 2.3%, and those to South Korea and Taiwan also rose 3.6% and 16.7% respectively as these nations travelled on different trajectories in dealing with Covid.

Despite the gloom, the UK continued to rollout battery electric (BEV), plug-hybrid (PHEV) and hybrid vehicles (HEV) to buyers at home and around the world. Combined production of these models rose to 18.8% of all cars made in Britain, up from 14.8% a year before, with BEVs increasing to a 4.5% share, up from 3.4%. All told, the UK turned out 172,857 alternatively fuelled vehicles, with 79.6% of these exported, evidence of the country’s existing capability in building the vehicles essential to a Net-Zero future.

Mike Hawes, SMMT Chief Executive, said, “These figures, the worst in a generation, reflect the devastating impact of the pandemic on UK automotive production, with Covid lockdowns depressing demand, shuttering plants and threatening lives and livelihoods. The industry faces 2021 with more optimism, however, with a vaccine being rolled out and clarity on how we trade with Europe, which remains by far our biggest market.

 “The immediate challenge is to adapt to the new conditions, to overcome the additional customs burdens and regain our global competitiveness while delivering zero emission transport. We will continue to work with Government to attract investment in battery production and supply chain transformation as we transition to smart and sustainable mobility, supporting jobs and driving economic growth nationwide.”

To read the full article click here

Courtesy www.smmt.co.uk

In December 2020, DVSA told you about a new secure way to log into the MOT testing system (MTS) via your smartphone.

If you don’t have a smartphone, you can still log in by email or with your existing security card.

Chris Price, Head of MOT policy, takes a closer look.

From mid-February 2021, you will be able to log into MTS using an authentication app on your smartphone.

Once the app is set up, you only need to authenticate once a day, which will make it easier to access MTS.

The system will remember certain details when the authentication takes place. If any of these change, the system prompts you to authenticate again, much like a bank does.

So, if you change site location, such as visiting another garage, the system will prompt you to authenticate again.

As we rollout the app, we will stop issuing replacement and new security cards. So, from mid-February if you lose or damage your security card it won’t be replaced. From then, you will be able to login to MTS via email or by using the authentication app.

Once you’ve set up the app you will no longer be able to use the security card.

Click here to read full article and how to use the app

We have been contacted by one of our members with regards to a memo that is being distributed by Trading Standards which details the instruction they have from the Scottish Government and their interpretation of this relevant to test drives. Please see below including the relevant links.

“You will see that from 16^thJanuary 2021, outdoor car lots are permitted to be open, but only for the collection of a vehicle that has been purchased, or the delivery or collection of a vehicle for the purposes of a repair, MOT or service. Vehicle test drives are NOT permitted. Further advice can be found in the undernoted guidance, under the section ‘The shopping experience’

https://www.gov.scot/publications/coronavirus-covid-19-retail-sector-guidance/pages/close-contact-services-questions-and-answers/

You can, of course, continue to make deliveries to fulfil orders received online, by phone, text or post. You should be aware that car sales using such methods will be subject to the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, which set out the information to be given to a buyer both before and after a contract is concluded. They also give the consumer the right to a “cooling off” period of 14 days, during which they may cancel the contract and return the vehicle for a full refund. Further information on these regulations can be found at the Business Companion website, links below.

https://www.businesscompanion.info/focus/car-traders/part-c-your-obligations-under-consumer-contracts-information-cancellation-and

https://www.businesscompanion.info/en/quick-guides/distance-sales/consumer-contracts-distance-sales

It is clear from the above that test drives are not permitted and may well be subject to checks by Trading Standards under the current lockdown rules, clearly as the “click and collect” rules are clear that consumers are able to visit a dealer to collect a previously purchased car, test drives would not be expected to be required."

The relevant act is located here.

The Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Amendment (No. 12) Regulations 2021 (legislation.gov.uk)

The SMTA is delighted to have received written confirmation from the Scottish Government regarding 'Click and Collect' and that it will be allowed to continue in Scotland from Saturday 16th January.

Please see the official statement below:

"Under the current Regulations, outdoor car lots are listed amongst those businesses that are able to remain open in level 4, albeit with the underlying legislative requirement that stay at home regulations mean that people should only leave their homes for an essential purpose.  As continues to be the case, people should not be browsing in car lots for vehicles that do not meet that requirement.  As the First Minister announced yesterday, the Regulations are being amended and will come into force on Saturday 16 January.  From Saturday, outdoor vehicle lots will only be able to open in order to allow collection of a purchased vehicle or for delivery or collection of a vehicle for repair, service or MOT.  

We will update the Scottish Government's retail guidance to reflect these changes and to provide additional FAQs to help with understanding and implementation."

The DigitalBoost Development Grant Fund is now open (as of Tuesday 12th January 2021) to Scottish businesses. This £10m fund is being processed on a first come, first served basis.

If you are running a business in Scotland and want to do more with digital; for example to, increase productivity, safeguard jobs, improve cyber security, build online booking systems, develop apps or invest in hardware/software then this fund may be applicable to you.

Get the support your business needs to do more online.

• Funded by The Scottish Government
• The Grant will contribute 75% and clients will contribute 25% of total project costs
• Grants of up to £25K for VAT registered businesses, or £5K for non-VAT registered
• Quick and easy application process
• Funds paid directly into your bank account retrospectively

That’s the message coming loud and clear from industry chiefs and leading retailers across the country, who have vowed to operate in a Covid-secure manner at all times.

Scottish Motor Trade Association chief executive Sandy Burgess stressed it was very much “business as usual” – although in line with the latest advice issued from Holyrood.

Mr Burgess explained that this allowed would-be buyers to visit dealer forecourts to check out vehicles. Traders can also continue to run online “click and collect” or “click and deliver” services for new and used car sales.

This kind of service was established or enhanced by motoring outfits as the pandemic developed in the spring of 2020.

Mr Burgess said: “To date, this has been very successful – with many thousands of customers concluding business online and the feedback from those who have done so is very positive indeed.”

Read the full article here at the Daily Record

Update from HMRC:

You must submit any December claims no later than Thursday‌‌‌ ‌14 January.

You can claim before, during or after you process your payroll. If you can, it’s best to make a claim once you’re sure of the exact number of hours your employees worked so you don’t have to amend your claim at a later date.

As a reminder, the UK Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, until the end of April 2021.

What you need to do now

1. Check if you’re eligible and work out how much you can claim using our CJRS calculator and examples, by searching 'Job Retention Scheme' on GOV‌.UK.
2. Submit any claims for December no later than Thursday‌‌ 14‌‌ January.
3. Keep records that support the amount of CJRS grant you claim, in case HMRC needs to check them. ‌

If you have already submitted your claims for December but find you need to make a change because you didn’t claim enough, you can do this until Thursday‌‌ 28‌‌ January.

To find out how to amend your claim, search 'Get help with the Coronavirus Job Retention Scheme' on GOV‌‌.UK.

Frequently asked questions about CJRS

You can find everything you need to know about CJRS on GOV‌‌‌.UK by searching 'Job Retention Scheme', but here are some answers to the most frequently asked questions.

Can I claim CJRS now if I haven’t previously?

You and your employees do not need to have benefited from the scheme before to make a claim. You can check if you’re eligible and work out how much you can claim using our CJRS calculator and examples, by searching 'Job Retention Scheme' on GOV‌.UK.

If you’re claiming for the first time, you’ll need:

• a Government Gateway (GG) ID and password – if you don’t already have a GG account, you can apply for one on GOV‌‌‌.UK by searching for 'HMRC services: sign in or register'
• to be enrolled for PAYE online
• the following information for each furloughed employee you’ll be claiming for:
• name
• National Insurance number
• claim period and amount
• PAYE/employee number.

There’s a list of monthly claims deadlines and a helpful step-by-step guide on GOV.UK, summarising the latest information on CJRS and the steps you need to take to make a claim – you can find these by searching 'Job Retention Scheme step by step guide'.

Can I furlough an employee if they are unable to work due to caring responsibilities?

If an employee asks to be furloughed because they have caring responsibilities resulting from coronavirus, such as caring for children who are at home as a result of school or childcare facilities closing, you can place them on furlough and claim for them under the CJRS.

Can I claim a CJRS grant to pay for holiday leave?

If you have furloughed employees because of the effect of coronavirus on your business, you can claim under the CJRS for periods of paid leave they take while on furlough, including for bank holidays such as Christmas Day or Boxing Day. You should not place employees on furlough just because they are going to be on leave.

If your employee is flexibly furloughed, you can count any time taken as holiday as furloughed hours rather than working hours. This means you can claim 80% of their usual wages for these hours.

If a furloughed employee takes holiday, you should top up their pay to their normal rate in line with the Working Time Regulations. For more information search 'check if you can claim for your employees' wages' on GOV‌‌‌‌‌.UK.

Can I include a Christmas bonus in my calculation for the grant?

You can claim for regular payments that you are contractually obliged to pay your employees, including compulsory commission, fees and overtime. However, you cannot claim for discretionary commission, non-contractual bonuses (including tips) and non-cash payments. For more information search 'steps to take before calculating your claim' on GOV‌‌‌‌‌.UK.

Where can I get further support?

Thousands of people have joined and benefited from our live webinars which offer more support on changes to CJRS, and how they affect you. To book online, or to view updated guidance, go to GOV‌‌‌‌.UK and search 'help and support if your business is affected by coronavirus'. If you’re booked on a webinar but no longer able to attend, please cancel your place where possible to allow space for others to register.

Our phone lines and webchat remain very busy, so the quickest way to find the support you need is on GOV‌‌‌‌.UK. This will leave our phone lines and webchat service open for those who need them most.

• Chancellor announces one-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through to the Spring
• £594 million discretionary fund also made available to support other impacted businesses
• comes in addition to £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and extension of furlough scheme

This follows the Prime Minister’s announcement last night that these business will be closed until at least February half-term in order to help control the virus, and, together with the wide range of existing support, provides them with certainty through the Spring period.

The cash is provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit over 600,000 business properties, worth £4 billion in total across all nations of the UK.

Chancellor Rishi Sunak said:

The new strain of the virus presents us all with a huge challenge - and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring.

This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.

A further £594 million is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply to their Local Authorities.

The new one-off grants come in addition to billions of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.

The government has also provided 100% business rates relief for retail, hospitality and leisure businesses, £1.1 billion existing discretionary funding for Local Authorities, the furlough scheme now extended to April and 100% government backed loans, extended until March.

Further information

• the one-off top-ups will be granted to closed businesses as follows:
• £4,000 for businesses with a rateable value of £15,000 or under
• £6,000 for businesses with a rateable value between £15,000 and £51,000
• £9,000 for businesses with a rateable value of over £51,000
• business support is a devolved policy and therefore the responsibility of the devolved administrations, which will receive additional funding as a result of these announcements in the usual manner:
• the Scottish Government will receive £375 million
• the Welsh Government will receive £227 million
• the Northern Ireland Executive will receive £127 million
• this will contribute to the funding which has already been guaranteed by the UK Government, to continue to provide the devolved administrations the certainty they need to plan for their COVID-19 response in the months ahead
• small businesses in the devolved administrations should also be able to benefit from other UK-wide measures in the government’s unprecedented package of support for business, including the various business lending schemes (where the repayment terms were made easier as part of the Winter Economy Plan), and the extension of the Self Employment Income Support Scheme

Dear MOT stakeholder,

Further to our communications regards England & Wales restrictions, I write today to provide assurance on the new Scotland Protection Level 4 restrictions.

The Scottish Government announced on 19 December that mainland Scotland will be moving into level 4 restrictions from 00:01 on 26 December.

Further to discussion and approval with Transport Scotland, we can confirm MOT garages can remain open across all protection levels 0-4 in Scotland.

DVSA

Dear Member

I have reviewed the most recent announcement made on Saturday night the 19^th of December by the First Minister,  the Scottish Government having placed the Scottish mainland into level four restrictions as of the 26^th of December and the impacts that this will have on our industry.  In the absence of any substantive commentary from the Scottish Government at the time of writing,  I have taken the decision to provide my best judgement on the application of the regulations based on our most recent correspondence received from the Scottish Government on the 11^th of December.   Therefore, until I am advised differently, I would advocate following the guidelines below:

Car Showrooms - should not be used for the retailing of vehicles, you are permitted to operate a “click and collect” service (or provide a delivery service) and you are permitted to operate an outside car sales area and to use the office or showroom space for the completion of documentation etc.   You are not permitted to use any part of the sales area within the showroom other than for the purposes previously advised.  It would be best to consider leaving showrooms unlit and with suitable signs in place to discourage any consumer entering the building from accessing display cars etc. You may operate your aftersales functions within the showroom such as service reception or parts counters.

In all cases the maximum attention must be made to the safety and wellbeing of your customers and staff and all the usual precautions and COVID safety measures such as physical distancing, hand sanitation and face coverings or physical barriers must be maintained.

Workshops, MOT, Parts departments, valeting and Bodyshop’s - as with the current regulations these are all seen as essential businesses categories and therefore are able to remain open with all the relevant safety precautions and restrictions undertaken at all times. To reiterate in all cases the maximum attention must be made to the safety and wellbeing of your customers and staff and all the usual precautions and COVID safety measures such as physical distancing, hand sanitation and face coverings or physical barriers must be maintained.

We will maintain a watching brief on this evolving situation and any further updates will be posted via our website as and when we become aware of the situation that is developing all the time.


Sandy Burgess FIMI
Chief Executive

Update from DVSA:

Annual training and assessment for MOT testers is an important part of improving road and vehicle safety. 

We know that over the last few months garages and testers have been busy.  

When we spoke to some of you in September, the majority of sites said their business had been impacted by COVID-19.  

Extending the deadline

We recognise the challenges you’ve faced this year, so we’re extending the deadline for the MOT annual assessment. 

MOT testers will now need to complete their training and assessment by Friday 30 April 2021 to avoid being suspended from testing.  

The training can be carried out individually or with a training provider and the result will be recorded automatically, via MTS. 

Testers should do this in plenty of time before the deadline and not leave it until the last minute. 

SMTA offer MOT training and assessment in conjunction with the IMI at favourable prices, please email info@smta.co.uk to book.

The Brexit transition period ends in 17 days. If your business trades goods with Europe or you represent businesses who do, you’ll need to be prepared for changes that will come into effect from 1‌‌‌‌‌‌ ‌January 2021.

We understand these are challenging times, but it is important to make sure that your business is ready for these new rules. At the time of writing, talks are ongoing about our future trading arrangements with Europe. These rules will not change or go away, and the steps that you need to take to prepare, are needed in any scenario before you can trade from 1‌‌‌ ‌January.

If you’re new to customs processes it will help you to watch our series of short videos on HMRC’s YouTube channel which introduce importing and exporting:

• What you need to know to send goods out of the UK
• What you need to know to bring goods into the UK
• What are controlled goods?

We also have a Trader checklist to help you prepare for the end of the Brexit transition period.

In addition, we are running live webinars where you can hear the latest information and ask questions to help you prepare for these new rules:

Exporting: Actions you need to take to prepare for 1‌‌‌ ‌January 2021

The webinar explains what actions you need to take to export goods from Great Britain to the EU and move goods between Great Britain and Northern Ireland. We’ll provide a run-through of the key export processes – staged border controls, zero-rated VAT, customs declaration, using an intermediary as well as licences, certificates and authorisations that you’ll need.

Please register to take part if you’re planning to export.

What are customs import declarations?

If you import goods, you’ll need to prepare for making customs import declarations on controlled goods from 1‌‌‌ ‌January, and by the end of June on all goods. This webinar will help you to understand what they are in more detail. This includes what is needed for simplified declarations, supplementary declarations, making import declarations without authorisation and delayed import declarations.

Please register to take part if you’re planning to import.

We update our webinars constantly to provide you with the latest government guidance and information as it develops.

HMRC Employer Bulletin (December 2020, Issue 87) includes a host of useful information including the extension to the Coronavirus Job Retention Scheme, VAT deferral and VAT reverse charge measures for the construction industry, Virtual Christmas Parties and Brexit transition updates.

There’s also a timely reminder about how to report PAYE Real Time Information early due to Christmas.

This new campaign looks to remind people of the five key behaviours that FACTS stand for, and how this should be part of our everyday lives to keep us all safe.

Download the FACTS poster for your garage here

The new FACTS campaign runs until the 20^th December on TV, press, radio, outdoor and social channels. Please find attached the Stakeholder Toolkit, which includes details on all available assets including the new icons: Download all FACTS Campaign Assets here

UPDATE FROM HMRC:


Coronavirus Job Retention Scheme (CJRS) claims for November, and actions you might need to take. You must submit any November claims, no later than 14 ‌‌December.

CJRS: what you can claim and when

The UK Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. The terms of the scheme will be reviewed in January.

There are now monthly deadlines for claims. Claims must be submitted within 14 calendar days after the month they relate to, unless this falls on a weekend in which case the deadline is the next weekday. We'll continue to send you reminder emails before the deadline each month.

As we approach the Christmas period, I appreciate your payroll dates may differ this month. Don’t forget you can claim before, during or after you process your payroll as long as your claim is submitted by the deadline.

 What you need to do now

1. Check if you’re eligible, and work out how much you can claim using our CJRS calculator and examples, by searching 'Job Retention Scheme' on GOV‌.UK.
2. Submit any claims for November, no later than 14‌‌‌ December.
3. Keep any records that support the amount of CJRS grant you claim, in case HMRC needs to check them. ‌

Frequently asked questions about CJRS

You can find everything you need to know about CJRS on GOV‌‌‌.UK by searching 'Job Retention Scheme', but here are some answers to the most frequently asked questions.

Can I claim CJRS now if I haven’t previously?

You and your employees do not need to have benefited from the scheme before to make a claim. If you’re applying for the first time, you’ll need:

• a Government Gateway (GG) ID and password – if you don’t already have a GG account, you can apply for one on GOV‌‌‌.UK by searching for 'HMRC services: sign in or register'
• to be enrolled for PAYE online
• the following information for each furloughed employee you’ll be claiming for:
• name
• National Insurance number
• claim period and amount
• PAYE/employee number.

If you have less than 100 furloughed staff, you’ll need to input this information directly into the system for each employee. If you have more than this, you’ll need to upload a file with this information. The easiest way to ensure your file is in the right format is to use our template – to find it, search ‘download a template if you're claiming for 100 or more employees’ on GOV‌‌‌‌.UK.

Where can I get further support?

Thousands of people have joined and benefited from our live webinars which now offer more support on changes to CJRS, and how they affect you. To book online, or to view updated guidance, go to GOV‌‌‌‌.UK and search 'help and support if your business is affected by coronavirus'.

There is also a helpful step-by-step guide on GOV‌‌‌.UK, summarising the latest information on CJRS and the steps you need to take to make a claim – you can find this by searching 'step by step guide'.

Our phone lines and webchat remain very busy, so the quickest way to find the support you need is on GOV‌‌‌‌.UK. This will leave our phone lines and webchat service open for those who need them most.

Can I use CJRS to pay for holiday leave?

Your employees can only be placed on furlough if you cannot maintain your workforce because your business has been affected by coronavirus, and not just because they are on paid leave. This also applies during any peak holiday periods in late December and early January. If your employee is flexibly furloughed, any time taken as holiday should be counted as furloughed hours rather than working hours.

If a furloughed employee takes holiday, you should pay them their normal rate of pay in line with the Working Time Regulations. For more information search 'Check if you can claim for your employees' wages' on GOV‌‌‌.UK.

What about notice periods?

For claim periods from 1‌‌‌ ‌December, you cannot claim CJRS grants for any days that your employee is serving a contractual or statutory notice period, including notice of retirement or resignation.

Can I re-employ someone and furlough them?

If your employees were on your payroll on 23‌ September‌ 2020 (notified to HMRC on an RTI submission on or before 23‌‌‌ September) and were made redundant or stopped working for you afterwards, they can qualify for the scheme if you re-employ them and then place them on furlough.

What if I’ve claimed too much in error?

If you have claimed too much CJRS grant and have not already repaid it, you must notify us and repay the money by the latest of whichever date applies below:

• 90 days from receiving the CJRS money you’re not entitled to
• 90 days from the point circumstances changed so that you were no longer entitled to keep the CJRS grant.

If you do not do this, you may have to pay interest and a penalty as well as repaying the excess CJRS grant. For more information on interest search 'Interest rates for late and early payments' on GOV‌‌‌‌‌‌‌‌.‌‌‌UK.

You can let us know as part of your next online claim without needing to call us. If you claimed too much but do not plan to submit further claims, you can let us know and make a repayment online through our card payment service or by bank transfer – search 'Pay Coronavirus Job Retention Scheme grants back' on GOV‌‌‌‌‌‌‌‌.‌‌‌‌‌‌UK.

What if I haven’t claimed enough?

If you made a mistake in your claim that means you received too little money, you’ll need to amend it within 28 calendar days after the month the claim relates to – unless this falls on a weekend or bank holiday, in which case the deadline is the next weekday. The deadline to amend claims for employees furloughed in November is‌‌ ‌Tuesday‌‌ ‌29‌‌ ‌December.

To find out how to amend your claim, search 'Get help with the Coronavirus Job Retention Scheme' on GOV‌‌‌.UK.

What information on my claim will you publish?

From February, we will publish the names, an indication of the value of claims and Company Registration Numbers (for those who have one) of employers who make CJRS claims for periods from December onwards. The published value of your claim will be shown within a banded range – to find a list of these, search 'Check if you can claim for your employees' wages' on GOV‌‌‌.UK.

Details of CJRS claims will then be published monthly as part of HMRC’s commitment to transparency and to deter fraudulent claims.

Your employees will also be able to check if you have made a CJRS claim on their behalf through their online Personal Tax Account from February. To set up a Personal Tax Account go to GOV‌‌‌.UK and search 'Personal Tax Account: sign in or set up'.

The Government has just announced the increased National Living Wage and National Minimum Wage rates which will come into force from April 2021.

Of particular note is that workers who are 23 or older will be entitled to receive the National Living Wage which will increase by 2.2% from £8.72 to £8.91 per hour as a minimum.

The National Minimum Wage bandings have been amended in light of the fact that those aged 23 or older are now to be entitled to the National Living Wage. The adjusted bandings (the top banding now being for those aged 21 or 22) will increase as follows:

• For those aged 21 or 22, from £8.20 to £8.36 per hour
• For those aged 18, 19 or 20, from £6.45 to £6.56 per hour
• For those aged 16 or 17, from £4.55 to £4.62 per hour
• For apprentices*, from £4.15 to £4.30 per hour

*Apprentices are entitled to receive the apprentice rate if they are either aged under 19 or aged 19 or over and in the first year of their apprenticeship.

More information regarding the increase in rates can be accessed here.

Courtesy www.justemploymentlaw.co.uk

Essential Info

• 197,374 UK engines built in October as output declines by -20.1%.
• Production for domestic and overseas markets falls -25.2% and -16.4% respectively.
• Year-to-date output remains down -30.1% as sector faces triple whammy of coronavirus, Brexit and 2030 end of sale date.

Mike Hawes, SMMT Chief Executive, said, “Another month of decline in UK engine production is extremely worrying. Manufacturers, who have already spent significant sums on responding to the pandemic and preparing for Brexit, must now contend with an end of sale date for internal combustion engines in under a decade. We must ensure that in the transition to electrification our skilled engine making workforce is not left behind. That’s why we need to see a new and comprehensive industrial strategy introduced in 2021, starting with the delivery of the Automotive Transformation Fund, to ensure the UK remains a competitive place to produce ultra-low and zero emission cars and powertrains.”

Courtesy SMMT, read the full article here

• UK commercial vehicle production falls by -25.6% as 6,761 units leave factory gates in October. 
• Production both for overseas and domestic markets in double digit decline as dual impact of Covid-19 and risk of ‘no deal’ Brexit bring down operator confidence. 
• Shortfall of 11,256 commercial vehicles in first 10 months pulls year-to-date performance down -18.1%.

Thursday 26 November 2020 UK commercial vehicle (CV) production decreased by -25.6% in October, with 6,761 units manufactured, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). Output for both overseas and domestic markets declined, by -21.1% and -30.4% respectively, as worries over recovery post-pandemic were compounded by the looming threat of a ‘no deal’ Brexit.

Factories turned out 2,326 fewer buses, coaches, vans, trucks and taxis than in the same month in 2019, as output for the domestic market fell for the first time since May, in spite of the wider CV and logistics sectors working double-time to keep the country moving throughout the pandemic. The number of units manufactured for export also decreased -21.1%, making up 54.5% of total production in the month.  

Performance in the year to date remains down, falling by -18.1% overall, with a shortfall of 11,256 units in the first 10 months of the year. All told, just over 50,000 new commercial vehicles have been made in Britain this year.

Meanwhile October saw only 76 buses built in Britain, down -34.5%. The impact of social distancing continued to affect operator confidence, with bus production now down -52.9% in the year to date. This week's government pledge to deliver the first 800 new zero emission buses by the end of this financial year, as part of the Prime Minister’s commitment in early 2020 to fund 4,000 of these vehicles, should offer some relief for the struggling bus manufacturing sector.

Read the full article from SMMT  here

Update from HMRC:

The CJRS has been extended to 31‌‌‌ ‌March 2021 for all parts of the UK. From 1‌‌‌ ‌November, the UK Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. The government will review the terms of the scheme in January.

You and your employees do not need to have benefited from the scheme before to claim for periods from 1‌‌‌ ‌November.

What you need to do now

• Submit any claims for periods up to 31‌‌‌ ‌October on or before 30‌‌‌ ‌November – they will not be accepted after this date. Claims are subject to eligibility and the rules in force at the time.

• Submit any claims for November, no later than 14‌‌‌ ‌‌December. You can claim before, during or after you process your payroll as long as your claim is submitted by the deadline.
• Keep any records that support the amount of CJRS grant you claim, in case HMRC needs to check them. You can view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV‌.UK.

For claim periods from 1‌‌‌ ‌December, you cannot claim CJRS grants for any days that your employee is serving a contractual or statutory notice period, including notice of retirement or resignation.

You can check if you’re eligible, and work out how much you can claim using our CJRS calculator and examples, by searching 'Job Retention Scheme' on GOV‌.UK.

Claims deadlines

There are now monthly deadlines for claims. Claims for periods starting on or after 1‌‌‌ ‌November must be submitted within 14 calendar days after the month they relate to, unless this falls on a weekend in which case the deadline is the next weekday. Your deadline to make claims for employees furloughed in November is Monday 14‌‌‌ ‌December.

Publishing employers’ information

HMRC will publish the names, an indication of the value of claims and Company Registration Numbers of employers who make CJRS claims for periods from December onwards. We'll write to you again with details of when this information will be published.

For claim periods from December, your employees will also be able to check if you have made a CJRS claim on their behalf through their online Personal Tax Account. To set up a Personal Tax Account go to GOV‌.UK and search 'Personal Tax Account: sign in or set up'.

• UK Automotive warns of Brexit tariff damage as new figures reveal ‘no deal’ would cut vehicle production by two million over next five years.
• WTO tariffs would strike £55.4bn blow to UK sector by 2025 with annual production falling below one million units consistently.
• Brexit deal must work for automotive to sustain competitiveness, help drive green recovery and jobs and keep the UK at forefront of global decarbonisation agenda.
• UK sector comes together at special online event as SMMT calls on government to keep car showrooms open, agree a Brexit deal and ‘build back together’ after coronavirus crisis

Tuesday 24 November, 2020 As Brexit talks enter the final stretch, the Society of Motor Manufacturers and Traders (SMMT) today made a last call for negotiators on both sides to keep the health of automotive at the heart of discussions and stretch every sinew to get a deal in place by Christmas that avoids tariffs, or risk damaging one of Europe’s most valuable manufacturing industries.

The entire European sector, including the UK,  has already lost €100 billion to the pandemic and has repeatedly called on EU and UK leaders to ensure the sector will not face further damage from the imposition of tariffs from 1 January 2021, which would deliver another €110 billion blow to manufacturers on both sides of the Channel.

For the UK industry alone, new figures reveal that production losses could cost as much as £55.4 billion over the next five years if the sector was forced to trade on WTO conditions long-term.² Even with a so-called ‘bare-bones’ trade deal agreed, the cost to industry would be some £14.1 billion,2 reinforcing how, for the automotive sector, Brexit has always been an exercise in damage limitation. With scant time left for businesses to prepare for new trading terms, the sooner a deal is done and detail communicated, the less harmful it will be for the sector and its workers.

Addressing an audience of industry executives, politicians and global media at SMMT 2020 Update Live, an online event held on the day the 104th SMMT Annual Dinner would have taken place, SMMT President and Executive Chairman HORIBA MIRA Dr George Gillespie OBE, said, “We need a future trading relationship that works for automotive. We’ve already spent nigh on a billion pounds preparing for the unknown of Brexit and lost twenty-eight times that to Covid.3 Let us not also be left counting the cost of tariffs, especially not by accident.”

Dr Gillespie continued, “Industry can deliver the jobs growth we need and help rebuild a devasted economy, but government must work with us to create the environment for this success. That starts with a favourable Brexit deal and a bold strategy to help transform automotive production in the UK, attract new investment, upskill our workforce and build world-leading battery capability to future-proof our manufacturing. When Covid lifts, we need to be ready; ready to support government to engineer an economic – and green – recovery.”

As well as affecting livelihoods in all regions of the country, ‘no deal’ would have a severe impact on the sector’s ability to develop and manufacture the next generation of zero emission cars and vans, as well as holding back market uptake of these vehicles at a critical time with a new ICE end of sale date just nine years away.

SMMT Chief Executive, Mike Hawes, said, “The government’s plan for a green industrial revolution is an immense challenge – for automotive, the energy sector, consumers and for government itself. We are already on the way, transforming an industry built on the combustion engine to one built on electrification. But to complete the job in under a decade is no easy task. And with showrooms closed, choking factories of orders, the ability of the sector to invest further is severely constrained. Automotive is nothing if not determined, adaptable and resilient, yet, as the clock ticks ever closer to midnight on Brexit negotiations, the competitiveness and employment we need get back to growth – green growth – hangs in the balance.”

WTO tariffs would add an average £2,000 to the cost of British-built electric cars sold in the EU, making UK plants considerably less competitive and undermining Britain’s attractiveness as a destination for inward investment, at the precise moment when building domestic battery manufacturing capability via ‘gigafactories’ and an electrified supply chain is essential. Meanwhile, these tariffs would mean a £2,800 hike per EU-built vehicle for UK consumers, all but cancelling out the current £3,000 plug-in car grant.

UK Automotive is one of the country’s most valuable economic assets, supporting some 180,000 often high-skilled and high-paid manufacturing jobs in communities across every nation and region of the UK, including those regions hit hardest by the economic impact of the pandemic. The sector is worth some £78.9 billion, exporting more goods than any other UK industry and providing an annual £15.3 billion in added value every year to the UK economy, while investing £3.72 billion in R&D.

Courtesy www.smmt.co.uk

The Scottish Government’s Covid Protection Levels campaign has been updated to reflect the new travel regulations for Levels 3 and 4 - these came into force on Friday 20^th November at 6pm.

Download your Stakeholder Toolkit here . 
 

Cox Automotive International president Martin Forbes – the firm behind Manheim – says the company is still undecided about whether it will ever reopen auction halls.

The company has been operating purely online since the pandemic with 100 per cent of transactions taking place on its website.

Forbes says in an ‘ideal world’ they would never go back to physical auction halls, but he is conscious of making sure the company offers what customers want.

He added: ‘We see the benefits and efficiencies for our business of not having to run a car through a physical auction hall. 

‘I personally think that if we have to go back to physical auction halls and not embrace some of this change, then we would let a good crisis go to waste.

‘What we have to do is keep getting better at running a digital proposition to make sure our customers, our buyers and our vendors are getting an even better experience through digital. 

‘We’re still going through that and we will continue to work on that in 2021, 2022 and beyond.’

The Cox Automotive Market Insight Report for 2020 has been launched today. View it here.

Read the full article here at Car Dealer Magazine https://bit.ly/2IH1RdH

Q: Which businesses can stay open in Level 4?

A: The businesses which must close at Level 4 are set out in law. Those that can remain open are:  

·        food retailers, including food markets, supermarkets, convenience stores and corner shops

·        off-licences and licensed shops selling alcohol (including breweries)

·        pharmacies (including non-dispensing pharmacies) and chemists

·        newsagents

·        homeware, building supplies and hardware stores

·        petrol stations

·        car repair and MOT services

·        bicycle shops

·        taxi or vehicle hire businesses

·        banks, building societies, credit unions, short-term loan providers, savings clubs, cash points and undertakings which by way of  business operate a currency exchange office, transmit money (or any representation of money) by any means or cash cheques which are made payable to customers

·        post offices

·        funeral directors

·        laundrettes and dry cleaners

·        dental services, opticians, audiology services, chiropody services, chiropractors, osteopaths and other medical or health services, including services relating to mental health

·        veterinary surgeons and pet shops

·        agricultural supplies shops and agricultural markets

·        storage and distribution facilities, including delivery drop off or collection points, where the facilities are in the premises of a business included in this sub-paragraph

·        car parks

·        public toilets

·        livestock markets or auctions

·        garden centres, plant nurseries, outdoor markets, and outdoor car lots

Businesses which are allowed to stay open will be expected to follow all other legal requirements, rules and guidance.

Q: My business isn’t in the list above – do I have to close in Level 4?

A: Yes. For retailers which have been defined as non-essential – i.e. not on the list of essential businesses above - the legal position is that they will need to close in Level 4. Any decision to move an area into level 4 will only be made if absolutely necessary as a short, sharp intervention to address very high transmission rates. Most retail is permitted in levels 0-3, with mobile close contact being limited to  levels 0-1. Mobile hairdressing only can operate in levels 2-3

Q: If I am in the non-essential category, can I still trade online? What about Click and Collect?

A: Yes – shops and retail businesses that close in Level 4 can continue to make deliveries or provide a collection service to fulfil orders received online, by phone, text or post. 

Q: What is 'outdoor retail'?

Sales which happen in outdoor spaces, such as outdoor markets, livestock markets, farmers markets, car auction lots, garden centres and plant nurseries.

Q: Are there any restriction to shopping hours?

A: There are no current plans to restrict shopping hours.

Q: How have you engaged with business around this?

A: We have been engaging with retail sector representatives and business organisations to understand their concerns and will continue to do so.

Q: What are you closing in Level 4?

A: Level 4 is broadly similar to full lockdown where the priority will be to reduce movement as far as possible to address high transmission rates and this will necessitate closing non-essential retail. Essential retail will be able to remain open in Level 4. All retailers will be able to continue online shopping, click and collect services and outdoor retail will also be able to operate in all levels.

Q: How will shutting shops reduce the spread of the virus?

A: In moving to Level 4 we would expect to see very high or rapidly increasing incidence of the spread of COVID–19 and widespread community transmission which may pose a threat to the NHS. The priority in level 4 is to reduce movement of people so that we can reduce transmission of the virus. Shopping is an area which can attract a lot of people, many of whom travel to shops, including on public transport. By shutting non-essential shops, we limit the spaces where people are exposed to others in enclosed spaces for prolonged periods. Measures would be designed to be in place for a short period, to provide a short, sharp response to quickly suppress the virus. It is likely that this level would see the introduction of measures close to a return to full lockdown.

Q: Will people have to queue to get into a store?

A: Possibly, yes. Closing some parts of the high street can mean that customers will have a smaller number of stores to choose from, resulting in increasing queues / numbers. The need for businesses to maintain 2m distancing also means that fewer people can safely be inside a shop or store at any one time. Businesses will be expected to determine how many people can safely be accommodated at any one time and implement queuing and other measures to prevent overcrowding. Customers are expected to follow any measures that retailers put in place. The priority in Level 4 is to reduce movement of people so that we can reduce transmission of the virus.

Q: Will you support a campaign to get people to shop local/shop early?

A: We would encourage everyone to think about whether their journey to the shops is necessary and to walk or cycle to local stores, where that is possible. We are engaging with the Scottish Retail Consortium on how we can support this but need to take a balanced view on how to avoid the unintended consequences of potentially adding to the virus transmission rate through encouraging more people to shop at the same time.

Q: Will people be able to buy a new or used car?

A: Yes – car sales will be allowed, although businesses must put in place measures to operate safely, for workers and customers, including physical distancing and other measures in concluding transactions. Customers will be expected to adhere to these measures.

Q: Can a potential buyer take a car for a test drive before buying it?

A: Yes – but we would recommend that the same physical distancing, vehicle cleaning and ventilation measures set out in the driving lesson guidance before and after taking a test drive. 

Strategic Framework and Levels

Q: Why has this approach been introduced?

A: Our ability to control the virus requires us to restrict economic activity as part of wider efforts to minimise transmission risks, and protect lives and the NHS. This approach will provide a more transparent and easily understood framework for managing outbreaks and allow us to respond appropriately and proportionately. It means those areas with low rates of infection do not need to be under the same protective measures designed to suppress the virus in areas with much higher rates.

Businesses will want to know in advance what may happen if there’s a risk of either a rise or drop in the infection rate in their area so that they can manage staffing, deliveries, services etc. Having a strategic framework helps them plan in advance for any changes  - either up or down the levels.

Q: How will the Levels system operate?

This framework sets out on five levels of protection consisting of four levels above the Route Map Phase 3 baseline (or 'Level 0') as set out below:

Level 0 (baseline) and Level 1

We would expect to see low incidence of the virus with isolated clusters, and low community transmission. The Baseline and Level 1 are designed to be sustainable for longer periods.

All retail businesses and close contact services including mobile services will be able to operate in these levels. 

Levels 2-3

We would expect to see increased incidence of the virus, with multiple clusters and increased community transmission. The measures would be intended to be in place for relatively short periods (2-4 weeks), and only for as long as required to get the virus down to a low, sustainable level.

Retail businesses will be able to operate in Levels 2 and 3, as will close contact services that are delivered from a salon, shop or other static site, such as a home treatment room.

Mobile hairdressing and barbering can also continue in Levels 2 and 3.

All other mobile close contact services will not be able to operate in Levels 2 or 3.

Level 4

We would expect to see very high or rapidly increasing incidence, and widespread community transmission which may pose a threat to the NHS to cope. It is likely that this level would see the introduction of measures close to a return to full lockdown. Measures would be designed to be in place for a short period, to provide a short, sharp response to quickly suppress the virus.

Essential retail will be able to remain open in Level 4.

Click and collect services for essential and non-essential retail and online retail can remain open. All other non-essential retail will be expected to close. 

All close contact services – static or mobile – will be closed. 

Q: Can I travel between areas in different Levels?

A: To suppress the spread of COVID-19 it is essential that, with limited exceptions, there is no travel to or from areas where higher numbers of people may be carrying the virus. If people do not abide by the guidance on travel and transport there is a risk that the virus will spread to areas where it is less common and we may have to return to national restrictions.

Q: How often will the levels change?

A: Local areas and the levels they are in will be reviewed weekly to decide whether levels should be maintained, increased, or reduced. However, while levels will be reviewed weekly, areas are likely to move between levels less frequently than that. Once set, levels are likely to be in place for two to four weeks at least, to give time for the effect of changes to be observed in data about the virus, and to ensure that the incidence and prevalence of the virus are responding to measures put in place to suppress it. The First Minister has stated that the outcome of the weekly review will be reported on a Tuesday with any changes proposed coming into effect on a Friday.

Q: What boundaries are being used to decide where the Levels are?

A: The Levels will be assigned to each local authority area. For very large geographic areas, such as the Highlands, it may be that the levels are established by Ward area.

Q: What evidence is being used to make a decision if Levels will change?

A: Decisions will be made on the basis of advice from local Directors of Public Health and Public Health Scotland, through the National Incident Management Team, and the assessment of our own senior advisors against the four harms. We will also engage with our local authority partners prior to making decisions and on the delivery bodies we rely on to implement and oversee the measures.

Q: What are the “Four Harms”?

A: These are the impacts of COVID-19 assessed over the following areas:

1.    The virus causes direct and tragic harm to people's health.

2.    The virus has a wider impact on our health and social care services in Scotland.

3.    The restrictions which have been put in place affect our broader way of living and society.

4.    The impact on our economy, with a damaging effect on poverty and inequality.

Q: Will there be clarity on customers' personal travel between local authorities on different Levels and what it means for Click and Collect etc?

A: To suppress the spread of COVID-19 it is essential that, with limited exceptions, there is no travel to or from areas where higher numbers of people may be carrying the virus. 

If people don’t abide by the travel guidance set out here, there is a risk that the virus will spread to areas where it is less common and we may have to return to national restrictions.

Q: Are people in Level 4 areas allowed to travel to Level 3/2 to shop?       

A: The recommendation is that people in a Level 4 area do not travel outside their local authority area unless for work or if it is absolutely necessary.

Q: Can distribution centres remain open to services online and Click and Collect shopping as well as deliveries?

A: Yes.

Q: Will deliveries of large items such as furniture or white goods still be permitted?             

A: Yes. There’s more information on this in the general guidance for safer workplaces.

Q: Is the installation of goods such as washing machines permitted?

A: Yes – this is also covered in the  general guidance for safer workplaces

Business support

Q: What support will there be for businesses that have to close?

A: Details of support for businesses facing closure or restrictions will be published shortly. Information on current support is available on the Find Business Support website or on the UK Government’s Work and Financial Support pages.

Close contact services - face coverings

Q: Do my clients/customers need to wear a face covering?

A: Yes, under Schedule 7 of the Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Regulations 2020 any person including staff and clients/customers must wear a face covering in a location used for the retail sale of goods or services – including shops and salons. Practitioners and clients/customers are encouraged to refer to current Scottish Government face-covering guidance for further information.

Q: As a business owner/third sector organisation do I need to enforce this law on my clients/customers?

A: Where face coverings are required, people responsible for relevant premises should take reasonable steps to promote compliance with the law.

If necessary, the police have enforcement powers including issuing fines of £60 (halving to £30 if paid within 28 days) if members of the public do not comply with this law.

Q:  If staff wear a visor do I need a face covering too?

A: Face shields/visors do not constitute an adequate face covering for the purposes of meeting your obligation under Schedule 7 of the Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Regulations 2020 Face shields or visors may be used, but only if they are worn in addition to an adequate face covering, as the evidence shows that they do not provide adequate protection. However, if you are unable to wear a face covering due to an exemption, a face visor or face shield can be worn as it does provide a limited level of protection.

Q: Who is exempt from wearing a face covering in a retail setting e.g. a shop?

A:  Those who are exempt from wearing a face covering. These include:

·        a child who is under the age of 5

·        a constable acting in the course of their duty

·        an emergency responder (other than a constable) acting in their capacity as an emergency responder

Read the full list of exemptions

Q: Can services still be provided if the practitioner or customer/client is exempt from wearing a face-covering?

A: We have published guidance on the public use of face coverings and for the retail sector.

Organisations have a duty under the Equality Act 2010 to make reasonable adjustments for disabled persons. The Equality and Human Rights Commission website includes guidance on using a service: reasonable adjustments for disabled people and retailers’ legal responsibility to disabled customers, and you can contact the Commission for further advice.

Close contact services - physical distancing

Q: How does physical distancing impact close contact services?

A:  Regulations allow for physical distancing of at least 2m “so far as reasonably practicable’. As close contact services cannot be provided from a 2m distance, these services can continue to take place (provided  your business operates in a Level that allows you to open.)

Where possible, 2m should be maintained in order to reduce the contact between individuals on site, for example, clients/customers should be at least 2m from one another when on the premises.

Q: Do I need screens between treatment areas/chairs?

A: 2 metre physical distancing is the legal minimum physical distance between persons without a partition. If 2m cannot be guaranteed then screens should be used to ensure physical distancing is maintained.

Q: Can I use all the chairs in my barber’s shop/salon if they are spaced at 1m from one another?

A: It is recommended that chairs be spaced at distances of at least 2m from one another. Where this cannot be achieved it may be possible, with additional controls, to have chairs located at a reduced distance. Remember there must be at least 2m physical distancing between persons. If this cannot be guaranteed screens/barriers should be put in place.

Q: I’m delivering mobile close contact services – where can I do that?

A. Mobile close contact services can be delivered in a customer/clients home or in any other place where the client/customer may have requested the treatment, such as a community facility or a hotel.  Practitioners should only see one client/customer at a time and ensure appropriate hygiene and physical distancing measures are taken to manage risks of working in an external environment. Practitioners  can find more information on risk assessments when working in other people’s homes on the Healthy Working Lives website.

We have published guidance for delivering mobile close contact services and practitioners should refer to it for further information

Q: How do I increase the ventilation in my business?

A: Advice on ventilation is provided by HSE

Close contact services - Test and Protect

Q. Do I need to record customer details?

A. Yes – clients/customers details should be collected either through a booking system or manually on the day of the appointment.

The gathering of contact information in a secure and safe manner from clients/customers or visitors to premises, will assist NHS Scotland's Test and Protect service to identify and contact individuals who may have been exposed to the virus, and request them to take appropriate steps to prevent the potential onward spread of the virus. The data will also be helpful to the NHS and key local partners to manage and contain location-specific outbreaks.

Q. Do I have to use the Protect Scotland app?

A: Protect Scotland is not a requirement – however it is important that we all download and use the app to help stop the spread of coronavirus. We know the more of us that do, the more effective it will be. We encourage all businesses, staff, practitioners, and their customers to download the Protect Scotland app.

Q: How long do I need to keep client/customer details on file for Test and Protect / contact tracing purposes?

A: Client/customer details should be retained for 21 days. Where details are to be retained electronically a business needs to be registered with the Information Commissioner’s Office. The ICO has produced specific guidance on this for businesses.

Q: What details should I be keeping for clients/customers?

A: As a minimum you should be retaining the clients/customer’s name and contact number or email address along with the name of the individual who provided treatment

Where possible, it is recommended that you note the room/location or chair that the client/customer occupied during the treatment. The more specific information that you can record about a treatment, the greater the benefit in the event that Test and Protect need to trace individuals. This could also protect the continuity of your business/third sector organisations/practitioners by limiting the number of staff/people having to self-isolate.

Close contact services - appointments

Q: Can I allow clients/customers to use the toilet on the premises?

A: Toilets can continue to be used in a managed way and provided that hand contact surfaces are cleaned between uses. It is also recommended that, where possible, the frequency at which mechanical ventilation operates within toilet facilities be increased. It is important to remember that some clients/customers may require to use the facilities for medical reasons.

Q: Can I offer clients/customers a cup of tea whilst on the premises? 

A. No drinks should be offered to clients/customers when in the salon. Clients/customers may bring their own drinks with them if needed and may temporarily remove a face covering to drink from their own container, maintaining a 2 distance from others where possible.

Q: Can I still use the waiting room as normal for clients/customers that turn up early?

A: It is not recommended that the waiting room be used unless it is possible for clients/customers to maintain the required distance. It is strongly recommended that clients/customers be encouraged to arrive at the time of their appointment and no earlier. Where an early arrival occurs, clients/customers should be asked to wait in their car or outside if it is not possible for them to maintain the required distance within the premises.

Where a waiting room is used procedures will require to be in place for the regular cleaning of hand contact surfaces such as arms of chairs, tables etc.

For close contact services operating in Level 3, additional protective measures to further inhibit the virus and enhance the safety of practitioners and customers/clients should be considered. Types of additional protective measures can include eliminating the waiting area outright.

Q: Do I have to remove magazines from the waiting room?

A: It is recommended that all unnecessary hand contact surfaces be removed from the premises and that clients/customers be advised to bring their own reading materials with them and take them with them when they leave.

Close contact services - treatments (including the High Risk Zone)

Q: What is the ‘high risk zone’?

A: The ‘high risk zone’ is the term used to describe the face, mainly the mouth and nose.

Q: What are acceptable control measures to allow treatments to be carried out in the high risk zone?

A: Considerations could include; minimising the time being spent working on the high-risk zone and implementing additional control measures (working from the side of the face etc.) or procedures to mitigate the increased risk. Treatments should not be performed that require the client’s/customer’s face covering to be removed.

Where additional controls cannot be implemented, treatments should not be offered.

It should be noted that if, at a later date, the client/customer is identified as a case who was infectious at the time of treatment, the individual performing the treatment will be considered a close contact and required to self-isolate regardless of the control measures implemented.

Q: In relation to treatments involving the face (high risk zone) what is the definition of “prolonged period”?

A: Health Protection Scotland has produced contact tracing guidance that contains information on close contact in non-healthcare settings. This suggests that ‘prolonged periods’ could be:

·        no amount of time: if face-to-face contact is at  1 metre or less; (i.e. in effect this should not be permitted)

·        1 minute: if contact is 1 metre or less, but does not involve face-to-face contact

 or

·        15 minutes: if contact is between 1 and 2 metres, whether or not contact is face-to-face

The limitation on the provision of any treatment is the ability to provide it from the side or behind the head. If you can provide the treatment from the side or from behind the head you should reduce the time in the high risk zone as much as possible. Treatments should not be provided in the area covered by a face covering – even if the client is exempt from wearing a face covering and that area is exposed.

• UK climate plan: what do the terms mean?
• Why the UK's carbon-free future will need rules
• Extra £40m pledged for green spaces in England
• Shift to electric cars 'requires Herculean effort'

The number of public electric vehicle charging points in the UK increased by 18% in 2020, according to the latest data from the Department for Transport (DfT).

The Electric Vehicle Charging Device statistics for October 2020 also shows a 7% increase in available chargers in Q3 2020 alone.

Of the 19,487 public chargers now available in the UK, 3,530 are rapid chargers.

London has the highest level of charging device provision per 100,000 of population but is slightly below average in terms of rapid charging device provision.

Scotland is above average in total devices per 100,000 and has the highest level of rapid device provision.

Read the full article at www.smarttransport.org.uk https://bit.ly/3kmlq7N

Update from HMRC:

Coronavirus Job Retention Scheme (CJRS) guidance is now available on GOV‌.UK. To check if you’re eligible and to get ready to claim from this week, go to GOV‌.UK and search 'Coronavirus Job Retention Scheme'.

You’ll be able to apply for CJRS online from  Wednesday‌‌‌ ‌11‌‌‌‌‌‌‌ ‌November – for periods from 1 ‌November. You will need to submit any claims for November by 14‌‌ ‌December.

What’s new in the support available

What you need to do now

Submit any claims for periods up to 31 October on or before 30‌‌‌ ‌November. Claims for periods up to 31 October will not be accepted after 30‌‌‌ ‌November. Claims are subject to eligibility and the rules in force at the time. Search 'Coronavirus Job Retention Scheme' on GOV‌‌‌‌.UK for full eligibility criteria.

What you need to do for your claims – for periods from 1 November

You will need to keep any records that support the amount of CJRS grant you claim, in case HMRC needs to check them. You can view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV‌‌‌‌.UK.

• UK auto industry issues last plea for UK-EU negotiators to agree a zero-tariff trade deal as talks enter the final stretch.
  
  
• New SMMT survey reveals at least £735 million cost to industry of preparing for Brexit so far, with more than £235 million spent in 2020 alone.
  
  
• Sector doing everything in its control to prepare for the end of transition period customs and border arrangements, but lack of clarity on post-December trading still hampering efforts.
  
  
• A disastrous ‘no deal’ outcome, or failure to achieve workable deal for auto, would mean £47 billion hit to UK sector over next five years – on top of ongoing coronavirus crisis costs.
  
  

1. A temporary grace period for exporters of at least one year to obtain supplier declarations.
   
   
2. Clarity on the format of the upcoming origin declarations and the necessary supporting documents and IT processes.
   
   
3. Certainty on preferential origin formalities for export to the UK’s other FTA trading partners.
   
   
4. Guidance on valuation and origin of used products, or ‘cores’, imported into the UK for remanufacturing purposes.
   
   
5. Detail on the Permission to Progress (P2P) process and Goods Vehicle Movement Service (GVMS) to mitigate the risks to Just-in-Time manufacturing. If there is substantial time between a company submitting a customs declaration and receiving a P2P there is a risk the manufacturing site becomes a lorry park and production gets significantly disrupted.
   
   
6. Draft legislation on how UK government will handle returnables/stillages/empty packaging that was committed to back in April 2020.
7. Support in connecting with third party customs intermediaries.
   
   
8. Extend access to the £84 million customs funding to all traders to boost their customs capacity and preparedness.
9. Publish a full list of ports and which operating model they will use as a matter of urgency.
   
   
10. Significantly more operational level information from government on the workings of the Northern Ireland Protocol.
    
    

DVLA Update: 

Throughout the month of November reminder letters are being issued to those customers who need to renew their ‘Trade Licence plates’ which are expiring in December 2020. In previous years DVLA have only processed these applications in the month of December, this year they are inviting customers to send their renewal applications in early by using the online renewal form (VTL318). See the step by step guide (see below for link) for further information.   They will start processing these applications once they are received.

In addition they have introduced some additional temporary changes to help customers renew their Trade Licence plates during these difficult times. These changes include:

·       the introduction of GOV.UK Notify to confirm receipt of the renewal application– when customers provide a mobile number on their application form, we will send them a text message to confirm receipt of their application.

·       temporary removal of the motor insurance check – customers will not need to provide documents to evidence they have valid motor insurance for this December 2020 renewal period.

Click here for step-by-step best practice guide to help applicants renew their trade plates.

Update from HMRC:

In light of the increased restrictions needed to curb the coronavirus pandemic, the UK government is introducing additional economic measures to support you and your employees.

Latest changes that may impact you

The Coronavirus Job Retention Scheme (CJRS), which was due to end on 31‌ October, will now be extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November.

You will need to pay all employer National Insurance Contributions (NICs) and pension contributions. You can choose to top up your furloughed employees’ wages beyond the 80% paid by the UK government for hours not worked, but you are not required to do so.

There will be no gap in support between the previously announced end date of CJRS and this extension.

For more information, go to GOV‌.UK and search 'furlough scheme extended'.

How will it work?

You will have flexibility to ask your employees to work on a part-time basis and furlough them for the rest of their usual working hours or furlough them full-time. You will have to cover their wages for any hours they work as well as all employer National Insurance and employer pension contributions.

You will be able to claim either shortly before, during or after running your payroll. There will be a short period initially when the online claims service will be closed while we update the system, and you will be able to claim in arrears for that period.

Further details will be provided in the next few days. Please do not call us for more information in the meantime – we will let you know via email as soon as this is available.

How to check if your employees are eligible

You can claim for employees who were on your PAYE payroll on 30‌ October 2020. You must have made a PAYE Real Time Information (RTI) submission to HMRC between 20‌ March 2020 and 30‌ October 2020, notifying a payment of earnings for that employee.

If employees were on your payroll on 23‌ September‌ 2020 (i.e. notified to HMRC on an RTI submission on or before 23 September) and were made redundant or stopped working for you afterwards, they can also qualify for the scheme if you re-employ them.

Neither you nor your employee needs to have previously used the CJRS. Further details on eligibility will be provided in the next few days.

What you need to do now

• Check if your employees are eligible for the scheme, based on the information above.
• Agree working hours with your employees, so they know if they are furloughed fully or part-time during November.
• Keep the records that support the amount of CJRS grant you claim, in case HMRC need to check it. You can view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV‌.UK.‌ 

The government decided to extend the Coronavirus Job Retention Scheme (furlough scheme) until December and postponed the start of the Job Support Scheme (JSS), which had been due to come into effect on 1 November. The JSS is now expected to come into force in early December but as experience has shown us, this could very well be subject to further change.

The extension to the furlough scheme applies to all four nations of the UK with immediate effect.

For the month of November, employers can furlough their employees on the same terms as applied in August this year – the government will pay 80% of the employee’s wages up to a cap of £2,500 per month. The employer does not require to contribute anything towards the 80% of wages, but will have to pay employer’s National Insurance contributions and an employer’s pension contribution at minimum auto-enrolment levels on the sums paid to the employee. These will not be reimbursed.

It will be possible to furlough employees who have never been furloughed before, as long as the employer has made a Real Time Information (RTI) submission notifying a PAYE payment for that employee to HMRC on or before 30 October 2020.

It will also remain possible to have employees on flexible furlough throughout the month of November, where an employee works some of their contracted hours (and is paid in full by the employer for these hours) and is on furlough for the remainder of their contracted hours.

You can read the government announcement here:

https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced

Article courtesy Just Employment Law  www.justemploymentlaw.co.uk

THIS SCHEME HAS BEEN POSTPONED, SEE ARTICLE ABOVE!

Job Support Scheme template letter -

 

Courtesy from Just Employment Law

 

 

In order to claim reimbursement under JSS Open, a short-time working agreement should be entered into with an employee. Importantly, the published guidance on the new scheme says that there must be a written agreement between the employer and the employee to this effect.

 

The JSS Open letter that can be used as a short-time working agreement. You will require to tailor the agreement prior to sending to ensure it reflects your agreement with staff.  Guidance on how to complete this letter can be found here.

 

The furlough scheme ended on 31 October and, immediately following this, on 1 November, the Job Support Scheme (JSS) will be implemented. Eligible employers can claim for reimbursement of eligible employees’ wages under the JSS even if an employee has not previously been furloughed.

 

Just Employment Law have prepared the attached documentation based on the information available from the government thus far. 

www.justemploymentlaw.co.uk

Update from DVSA:

The Scottish Government has confirmed that from Monday 2 November 2020, by law, you and your pupils must wear a face covering during driving lessons.

This does not include motorcycle or tractor lessons.

If you do not wear a face covering, you must have a good reason, for example:

• you have a physical or mental illness, impairment or disability
• wearing it would cause you severe distress
• you and the person you are teaching live in the same household

Your pupils will need to let you know before their lesson if they cannot wear a face covering.

You can be fined £60 if you do not wear a face covering during a driving lesson in Scotland. This will be reduced to £30 if you pay within 28 days.

Face coverings: practical tests

Your pupils must bring and wear a face covering for their practical test, unless they have a good reason not to. Good reasons are things like:

• having a physical or mental illness or impairment, or a disability
• wearing it would cause them severe distress

If they refuse to wear a face covering they will not be able to take their test.

If they do have a good reason they need to tell us when they book their test.

Face coverings: theory tests

Your pupils must bring and wear a face covering for their theory test, unless they have a good reason not to. Good reasons are things like:

• having a physical or mental illness or impairment, or a disability
• wearing it would cause them severe distress

They need to say if they have a good reason not to wear a face covering when they book their test.

If they already have a theory test booked and have a good reason not to wear a face covering they need to call Pearson VUE on 0300 200 1122.

Update from HMRC:

We’re writing to let you know that we have published further information on the Job Support Scheme – including how you can check if you’re eligible and when you can make your first claim. You can find this on GOV‌‌‌‌.UK by searching 'Job Support Scheme'.

Job Support Scheme

The Job Support Scheme (JSS) will open on 1‌‌‌ ‌November and run for six months, until 30‌‌‌ ‌April 2021. The government has said it will review the terms of the scheme in January 2021. There are two variations to JSS – JSS Open and JSS Closed.

The UK government announced yesterday it will significantly increase the generosity and reach of its winter support schemes to ensure livelihoods and jobs across the UK continue to be protected in the difficult months to come, supporting jobs and helping to contain the virus.

In recognition of the challenging times ahead, the Chancellor said he would be increasing support through the existing Job Support and self-employed schemes.

JSS Open will provide support to businesses that are open where employees are working shorter hours due to reduced demand. Your employees will need to work at least 20% of their usual hours. You will continue to pay employees for the hours they work, and the UK government will pay a contribution of 61.67% of the usual pay for hours not worked, up to a maximum of £1,541.75 per month. You will pay 5% of the usual pay for hours not worked, up to a maximum of £125 per month, and can top this up further if you choose. This means employees should receive at least two thirds of their usual pay for hours not worked.

The caps are reduced according to the proportion of hours not worked. Further guidance on this will be available on GOV‌‌‌‌.UK shortly.

You will need to cover all employer National Insurance and pension contributions.

JSS Closed will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from their premises, and those restricted to providing food and/or drinks outdoors.

For JSS Closed, the UK government will fund two thirds of employees' usual wages for time not worked, up to a maximum of £2,083.33 per month. You will not be required to contribute, but you can top up the government’s contribution if you choose to. You will still need to cover all employer National Insurance and pension contributions.

You’ll be able to make your first JSS claim in arrears from 8‌‌‌ ‌December, for pay periods ending and paid in November. We’ll let you know more about how to make a claim by the end of this month.

Your employees will be able to check if you have made a Job Support Scheme claim on their behalf through their online Personal Tax Account. Employees can set up a Personal Tax Account on GOV‌‌‌‌.UK, by searching 'Personal Tax Account: sign in or set up'.

Job Retention Bonus (JRB)

You’ll be able to claim a one-off payment of £1,000 for every eligible employee you furloughed and claimed for through the Coronavirus Job Retention Scheme (CJRS), kept continuously employed until at least 31‌‌‌ ‌January 2021 and who meets the other eligibility criteria. You do not have to pay this money to your employee.

You will be able to claim the bonus between 15‌‌‌ ‌February and 31‌‌‌ ‌March. To do this you must have submitted PAYE information for the period up to 5‌‌‌ ‌February 2021 on time.

Further information on eligibility and when you can claim can be found on GOV‌‌‌‌.UK by searching 'Job Retention Bonus Guidance' and further guidance on the claim process will be published by the end of January 2021.

Coronavirus Job Retention Scheme – closes on 31‌‌‌ ‌October

Please note that this scheme closes on 31‌‌‌ ‌October and you will need to make any final claims on or before 30‌‌‌ ‌November. You will not be able to submit or add to any claims after 30‌‌‌ ‌November.

From 1‌‌‌ ‌October, the UK government has paid employers 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.

You continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You need to fund the difference between this and the CJRS grant yourself.

The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in October, you are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap). You must still pay your employee at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours you’d need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion yourself. For help with calculations, search 'Calculate how much you can claim using the Coronavirus Job Retention Scheme' on GOV‌‌‌‌‌.UK.

You’ll also continue to pay employer National Insurance and pension contributions from your own funds.

You must keep the records that support the amount of CJRS grant you have claimed in case HMRC needs to check it. You can now view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV‌‌‌‌.UK.

Claimed too much in error?

It’s important that you check each claim is accurate before submitting it, and we would also recommend checking previous claims and repaying any amount over-claimed, so you will not have to pay interest and penalties if we subsequently discover you have claimed too much.

If you have claimed too much CJRS grant and have not already repaid it, you must notify us and repay the money by the latest of whichever date applies below:

• 90 days from receiving the CJRS money you’re not entitled to
• 90 days from the point circumstances changed so that you were no longer entitled to keep the CJRS grant.

If you do not do this, you may have to pay interest and a penalty as well as repaying the excess CJRS grant. For more information on interest search 'Interest rates for late and early payments' on GOV‌‌‌‌‌.‌‌‌UK.

How to let us know if you have claimed too much

You can let us know as part of your next online claim without needing to call us. If you claimed too much but do not plan to submit further claims, you can let us know and make a repayment online through our card payment service or by bank transfer – go to 'Pay Coronavirus Job Retention Scheme grants back' on GOV‌‌‌‌‌.‌‌‌‌‌‌UK.

Further support

Guidance and live webinars offering you more support on changes to CJRS, JSS and JRB, and how they impact you, are available to book online – go to GOV‌‌‌‌‌.UK and search 'help and support if your business is affected by coronavirus'.

Our phone lines and webchat remain very busy, so the quickest way to find the support you need is on GOV‌‌‌‌‌.UK. This will leave our phone lines and webchat service open for those who need them most.

• New calculations reveal ‘no deal’ tariff threat to Britain’s green recovery, with £2,800 average price uplift on EU-built EV effectively cancelling out UK’s plug-in car grant.
• Shock of higher cost risks reducing increased BEV demand next year by at least 20%, hampering UK’s efforts to reach ambitious emissions reduction targets.

• Tariffs would also add £2,000 to cost of British-built battery electric cars sold in Europe, damaging international competitiveness as UK strives to become a global leader in electromobility.

• Automotive sector repeats call for swift conclusion of an ambitious UK-EU FTA to protect jobs and drive a sustainable recovery across every region.

The Society of Motor Manufacturers and Traders (SMMT) has again urged both sides to re-engage with vigour in the Brexit negotiation process, honouring the commitment to get a good deal done, as new calculations illustrate the high stakes of ‘no deal’, not only for the automotive sector but for hopes of a green recovery from the coronavirus crisis.

‘No deal’ would be the worst possible outcome for UK Automotive, for car buyers and for the country’s ambitions to become a world leader in transport decarbonisation. The immediate imposition of blanket tariffs under World Trade Organisation (WTO) rules would add billions to the cost of trade and, crucially, to the cost of building and buying electric vehicles.

The 10% ‘no deal’ WTO tariff would add at least £4.5 billion to the annual cost of fully assembled cars traded between the UK and the EU, with an average hike of £1,900 per EU-built vehicle sold in the UK.¹ However, new analysis shows that for fully electric cars fitted with expensive battery technology, the cost increase is even higher, at £2,800, effectively making the £3,000 plug-in car grant for these vehicles null and void.²

Moreover, this tariff would also add some £2,000 on to the average cost of UK-built battery electric cars (BEV) exported to the EU, making our own products less competitive and the UK far less attractive as a manufacturing investment destination.³ This would further hamper the UK’s ambition to be a global leader in zero emission vehicle development, production and deployment, severely damaging industrial competitiveness.

The UK and EU automotive industries are deeply integrated, with around two thirds of all battery electric cars on sale in the UK built in European factories.⁴ New tariffs would hold back the evolution of the electric car from a niche technology to one with mass affordability. UK car buyers are currently on track to register some 78,000 BEVs this year, with further growth expected in 2021. However, SMMT estimates that the price shock caused by these tariff increases could reduce the increased demand for BEVs next year by at least 20%, even before the impact of potential, border delays, supply chain disruption and currency fluctuations are taken into account, hindering efforts to accelerate uptake and decarbonisation.

You can read the full article here on SMMT's website:  https://bit.ly/35y4uWz

From HMRC:

Wages can be complex and different elements of pay affect the National Minimum Wage differently.

Misunderstanding of what can be included in minimum wage calculations is a common cause of underpayment – even amongst employers who think they are paying minimum wage rates or above.

HMRC is offering two live webinars covering elements of pay that cause the most confusion to employers on 27th October or 29th October.

Choose your date and time

From HMRC: Employer Bulletin (October 2020, Issue 86) includes all of the latest COVID-19 updates to help you continue to meet your payroll obligations to HMRC, including recent government announcements of additional support for businesses and employees.

We’ve included the latest update on both the Coronavirus Job Retention Scheme and the Job Retention Bonus, the new Job Support Scheme, support for home working, updates on the UK Transition, and changes to Off-Payroll Working rules.

To avoid delay, we recommend use of our online services should you need to contact or send us information.

Update from HMRC:

We’re writing to provide you with further information on the support schemes available to help you through the COVID-19 pandemic:

• Job Support Scheme
• Expansion of Job Support Scheme
• Job Retention Bonus
• Coronavirus Job Retention Scheme
• VAT Deferral New Payment Scheme.

Job Support Scheme

The government recently announced the Job Support Scheme (JSS) to protect jobs where businesses remain open but are facing lower demand over the winter months due to COVID-19.

Under JSS the government will contribute towards the wages of your employees if they are working fewer than normal hours due to decreased demand. You will continue to pay the wages for the hours your staff work. Employees must work at least 33% of their usual hours. For the hours not worked, you and the government will pay a third each of their usual wages (the government contribution is capped at £697.92 per month).

Expansion of Job Support Scheme

The government today (9‌‌‌ October) announced an expansion of the JSS, to provide temporary support to businesses whose premises have been legally required to close as a direct result of coronavirus restrictions.

Under this expansion, affected businesses will receive grants towards the wages of employees who have been instructed to and cease work. This will cover businesses that, as a result of restrictions set by one or more of the four governments of the UK, are legally required to close their premises, or to provide only delivery and collection services from their premises.

The government will pay two thirds of employees’ usual wages, up to a maximum of £2,100 per month. You will not be required to contribute towards wages, but do need to cover employer National Insurance and pension contributions.

You can apply for the JSS including the new expansion even if you haven’t previously used the Coronavirus Job Retention Scheme (CJRS). JSS is available for six months, from 1‌‌‌ November, with payment of grants in arrears from early December. The scheme will be reviewed in January.

Search 'Job Support Scheme expanded to firms required to close due to Covid Restrictions’ and ‘Job Support Scheme factsheet’ on GOV.UK for more details. Further information will be published in the coming weeks.

Job Retention Bonus – guidance now live

Further guidance for the Job Retention Bonus is now available. It includes information about how you can check if your employees are eligible and when you can claim the bonus.

You’ll be able to claim a one-off payment of £1,000 for every eligible employee you furloughed and claimed for through the Coronavirus Job Retention Scheme (CJRS) and kept continuously employed until at least 31‌‌‌ January 2021. You do not have to pay this money to your employee.

To be eligible, employees must earn at least £1,560 between 6‌‌‌‌‌‌ November 2020 and 5‌‌‌ February 2021 and have received earnings in the November, December and January tax months. Employees must also not be serving a contractual or statutory notice period for you on 31‌‌‌ January 2021.

You will be able to claim the bonus from 15‌‌‌ February until 31‌‌‌ March, once you have submitted PAYE information for the period up to 5‌‌‌ February 2021. We’ll let you know how you can make a claim when further guidance is published by the end of January.

You can still claim the Job Retention Bonus if you make a claim for the same employees through the Job Support Scheme, as long as you meet the eligibility criteria for both.

Further information can be found on GOV.‌‌‌UK by searching ‘Job Retention Bonus Guidance’.

What you need to do now

If you intend to claim the Job Retention Bonus, you must:

• keep your PAYE submissions up-to-date and on time, with Real Time Information (RTI) reporting for all employees, including reporting the leaving date for any employees that stop working for you in the month they leave or the next Full Payment Submission
• use the irregular payment pattern indicator in RTI for any employees not paid regularly
• provide any employee data for past CJRS claims that HMRC has requested
• make sure all your CJRS claims have been accurately submitted and you have told us about any changes needed (for example if you’ve received too much or too little).

Coronavirus Job Retention Scheme – changes from 1‌‌‌ October  

From 1‌‌‌ October, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work. 

You will continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself. 

The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in October, you are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap). You must still pay your employee at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours you’d need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion yourself. For help with calculations, search ‘Calculate how much you can claim using the Coronavirus Job Retention Scheme’ on GOV‌.‌‌‌UK.

You’ll also continue to pay your furloughed employees’ National Insurance and pension contributions from your own funds. 

The scheme closes on 31‌‌‌‌‌‌ October and you will need to make any final claims on or before 30‌‌‌ November. You will not be able to submit or add to any claims after 30‌‌‌ November.

Claimed too much in error?

It’s important that you continue to check each claim is accurate before submitting it, and we would also recommend checking previous claims so you can avoid any penalties for claiming too much.

If you have claimed too much CJRS grant and have not repaid it, you must notify us and repay the money by the latest of whichever date applies below:

• 90 days from receiving the CJRS money you’re not entitled to
• 90 days from the point circumstances changed so that you were no longer entitled to keep the CJRS grant

• 20‌‌‌ October 2020, if on or before 22‌‌‌ July you received CJRS money you were not entitled to, or if your circumstances changed.

If you do not do this, you may have to pay interest and a penalty as well as repaying the excess CJRS grant. For more information on interest search 'Interest rates for late and early payments' on GOV‌.‌‌‌UK.

How to let us know if you have claimed too much

You can let us know as part of your next online claim without needing to call us. If you claimed too much but do not plan to submit further claims, you can let us know and make a repayment online through the new card payment service – go to 'Pay Coronavirus Job Retention Scheme grants back' on GOV‌.‌‌‌‌‌‌UK.

Further support

Guidance and live webinars offering you more support on changes to CJRS and how they impact you are available to book online – go to GOV‌.‌‌‌‌‌‌UK and search 'help and support if your business is affected by coronavirus'.

Our phone lines and webchat remain very busy, so the quickest way to find the support you need is on GOV‌.‌‌‌‌‌‌UK. This will leave our phone lines and webchat service open for those who need them most.  

VAT Deferral New Payment Scheme

If you deferred VAT payments that were due between 20‌‌‌‌‌‌ March and 30‌‌‌ June 2020, then these payments need to be made to HMRC by 3‌‌‌1‌‌‌ March 2021. You can use the VAT Deferral New Payment Scheme to spread these payments over equal instalments up to 31‌‌‌ March‌‌‌ 2022. Alternatively, you can make payments as normal by 3‌‌‌1‌‌‌ March 2021, or make Time To Pay arrangements with HMRC if you need more tailored support.

More information on the VAT Deferral New Payment Scheme will be available on GOV.‌‌‌UK in the coming months.

The Department for Business, Energy and Industrial Strategy (BEIS) will aim to help automotive and retail businesses to prepare for Brexit as part of a series of webinars taking place this month.

The UK is leaving the EU single market and customs union at the end of the Brexit transition period on December 31 and BEIS wants to ensure that businesses are ready for the changes it will bring.

Its series of webinars on the various changes that can be expected by various sectors get underway today (October 13), with automotive and retail set to be addressed online tomorrow.

A statement issued by BEIS said that the webinars’ content will “explain what the changes will mean and the actions businesses must take to avoid interruption and enjoy the opportunities the UK’s new relationship with the EU will bring”.

It added: “The webinars will guide businesses through the changes, which include how to import and export goods, the process for hiring people from the EU, and how to provide services in EU markets.”

Business sectors being covered by these webinars are:

• Services and Investment, October 13
• Retail, October 14
• Automotive, October 14
• Metals and Materials, October 20
• Electronics and Machinery, October 21
• Consumer Goods, October 22
• Life Sciences, October 27
• Construction, October 28
• Aerospace, October 29

Anyone wishing to actively participate in the webinars can register now at bit.ly/UKTwebinar.

The webinars will be recorded and made available on this link for those businesses unable to attend, however.

BEIS said: “Thousands of businesses have attended previous EU Exit seminars and events that BEIS has run over the past two years.

“Feedback shows participants found the information useful, especially for clarifying areas they were already thinking about and raising awareness of actions not already on their radars.

“A digital roadshow held in 2019 was found useful by over three-quarters of those who attended.”

The Chancellor has announced [9 October] that the UK Government’s Job Support Scheme will be expanded to support businesses required to close their doors as a result of coronavirus restrictions.

Welcoming the move, Alister Jack said:

The extension of the Chancellor’s Job Support Scheme is welcome news for businesses across Scotland, providing a vital safety net for companies which are asked to close temporarily.

From the very start of the pandemic, the UK Government has focussed on stopping the spread of coronavirus and keeping people safe, while also doing everything we can to protect the economy.

The unprecedented package of measures we have put in place to support all parts of the country shows the clear benefits for Scotland being part of a strong United Kingdom.

Full details of the announcement are here.

SMTA received a letter from the Scottish Government regarding face masks, see extract below.  You can read the full letter here

When Scotland entered Phase Three of its lockdown easing plan it was announced that retail, along with the hospitality and public transport sectors, will be exempt from the two-metre rule. Retailers were given the option to reduce the physical distancing rule to one metre, as long as they put necessary mitigations in place from 15 July.

Additionally, from 10 July face coverings became mandatory in shops, except where an exemption applies (as defined in the regulations). Staff are also required to wear a face covering unless they are physically separated from customers, by means of, for example, partition screens. They also do not require a face covering if they maintain a two-metre distance from customers or members of the public. In any of these circumstances where staff do not require a face covering, they are still mandatory for customers.

Update from Health & Safety Executive - 

As businesses re-open and workers return to the workplace, employers are having to adapt their working environments to manage the risk posed by coronavirus.

To minimise the risk of infection in the workplace, HSE is carrying out spot checks and inspections on businesses to ensure they are COVID-secure. We are doing this by calling and visiting premises to speak to duty-holders to check the measures they’ve put in place are in line with the current guidance.

We are doing spot checks and inspections on all types of businesses, in all areas. During the checks we provide advice and guidance to manage risk and protect workers, customers and visitors. Where businesses are not managing this, we will take immediate action in one of the following ways:

• providing specific advice
• issuing enforcement notices
• stopping certain work practices until they are made safe
• prosecution where a business fails to comply

Being COVID-secure means being adaptable to the current guidelines, and HSE’s inspection approach will adapt as workplaces in different sectors manage the coronavirus risks that apply to them. Most employers want to do the right thing, and HSE is here to help and provide advice.

We are also working closely with local authorities assisting them in their targeting of premises in the sectors they regulate such as hospitality and retail.

If you receive a call from us, you must participate in the spot check as you have a duty under health and safety law to engage with us. Please note that the call will currently come up as an unknown number.

You can find more HSE advice on making your workplace COVID-secure.


For more info visit the full article on their website here

New car market – UK from Cox Automotive - Read the full analysis here

Registrations currently down -39.7% YTD and the SMMT forecast -30% down by the end of 2020

• Lost 600k registrations during COVID-19 lockdown and YTD
• Production constraints for OEMs due to lost efficiencies and supply chain issues
• SMMT reduce the 2020 full-year outlook to -30%, representing more than £20 billion of lost sales 
• Rental experience new consumer behaviours and vehicle usage
• Order take healthy across the network, but concerns remain regarding supply
• OEMs focus on maximising 2020 recovery ahead of the threat of tariffs  

CECRA joined a roundtable organized by the European Commission with the participation of Commissioner Breton, in charge of Industry and digitalization and Commissioner Schmit, in charge of Jobs and Social rights.

The aim of the meeting was to share industry and institutions views on the future of the automotive sector in Europe during and after the COVID19 crisis, to find a common ground to set up a revived collaboration, which is deeply needed and urgent.

Both Commissioners recognized the central and primary role of the automotive sector for the whole European economy. The focus of the discussion was the need of reskilling for all workers of the sector: support their reskilling is the only way to make the automotive sector transition work and to avoid harmful job losses.

Challenges are known and unanimously recognized: electrification, digitalization and COVID19.

Many participants underlined the need of cooperation between public authorities and value chain actors to create highly efficient and up to date training centers. Some participants suggested to start with pilot projects at regional level, not only with universities, but also engaging schools. A Pan European action will be beneficial for the whole sector, aiming to create clarity and coordination between Member States. Commissioners are aware of the urgency need to support both corporate and SMEs.

The European Commission’s initiative “Pact for skills” will be launched on Nov 10 2020.

For CECRA, it is fundamental to constantly monitor this topic at European level: we envisage a huge increase of EV and AV products in the near future and dealers and repairers must be ready to manage and work with these products. The technology is new and the training is an absolute necessity for all workers, but it is costly; the Recovery Plan can fund reskilling actions supporting the transition of businesses, reducing the risk of discrepancies between supply and demand in the automotive sector. At the same time, new business models will emerge and CECRA must monitor solutions that support the benefit for all actors of the European Automotive value chain.

From Just Employment Law  www.justemploymentlaw.co.uk

As noted in a previous news item the Job Support Scheme will be introduced from 1 November 2020 for a six month period until April 2021. The aim of the Scheme is to protect viable jobs in businesses which, due to coronavirus, are anticipating lower demand over the winter.

In order to benefit from the Scheme, employees must work at least one third (33%) of their normal hours for the first three months of the Scheme and be paid for those hours by their employer. The Government shall review this minimum hours requirement after three months of the Scheme.

For the hours not worked by employees, the Government and the employer will then pay a third each of the employee’s usual wage. The Government’s contribution will be capped at a maximum of £697.92 per month. As a result, employees who are back at work on reduced hours, will receive a minimum of 77% of their normal pay (where the Government cap does not apply), subject to their agreement.

The Scheme will be available to all businesses throughout the UK, including those who have not taken advantage of the Coronavirus Job Retention Scheme subject to them having a UK bank account and a UK PAYE scheme. That said, large businesses will have to meet a financial assessment test before being able to benefit from the Scheme. Employers can benefit from both the Job Support Scheme and Job Retention Bonus if they meet the eligibility requirements.

In order to be eligible for the Scheme, employees must have been on the employer’s PAYE payroll and a Real Time Information submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020. Employees do not have to have the same working pattern each month but each short time working arrangement must cover a minimum period of seven days. In addition, employees will be able to rotate on and off the Scheme. During any period where an employer is claiming a grant for an employee, the employee cannot be made redundant or put on notice of redundancy.

Grant payments from the Government will be made in arrears each month to reimburse the employer for the Government’s contribution. It has been confirmed that employers will be required to pay class 1 employer NICs and pension contributions.

The Treasury have released a factsheet with further information about the Scheme which can be accessed here.

Update from HMRC

A new Job Support Scheme will be introduced from ‌‌1‌‌ November to protect jobs where businesses are facing lower demand over the winter months due to coronavirus (COVID-19). 

Under the scheme, which will run for six months, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand. 

You will continue to pay the wages for the hours your staff work. For the hours not worked, you and the government will each pay one third of their usual wages (capped at £697.92 per month). You will need to meet your share of the pay for unworked hours and all your National Insurance contributions and statutory pension contributions, from your own funds. This means that employees will receive at least two thirds of their usual wages for the hours not worked. 

To be eligible, employees must:  

• be registered on your PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment in respect of that employee must have been made to HMRC on or before 23 September 2020
• work at least 33% of their usual hours. The government will consider whether to increase this minimum hours threshold after the first three months of the scheme.

Further eligibility criteria is available on GOV‌.UK by searching 'Job Support Scheme factsheet'.

The Job Support Scheme will be open to employers across the UK even if you have not previously applied under the Coronavirus Job Retention Scheme (CJRS) which closes on 3‌1‌‌ ‌‌October.

The Job Support Scheme will start from 1‌‌ November and you will be able to claim in December. Grants will be paid on a monthly basis.  

The scheme will operate in addition to the Job Retention Bonus. You and your employees can benefit from both schemes in order to help protect viable jobs. 

For information on what is covered by the grant, which employers and employees are eligible, and how to claim, search 'Job Support Scheme factsheet' on GOV‌.UK.

Extension to the reduced rate of VAT for Hospitality and Tourism

The government has extended the temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector. This relief came into effect on 15 July 2020 and will now end on 31‌‌ March 2021 across the UK.

VAT Deferral New Payment Scheme

If you deferred payments that were due between 20 March and 30 June 2020, then these payments need to be made to HMRC by 31‌‌ March 2021. You can use the New Payment Scheme to spread these payments over equal instalments up to 31‌‌ March 2022. Alternatively, you can make payments as normal by 31‌‌ March 2021 or make Time To Pay arrangements with HMRC if you need more tailored support.

New Self Assessment Self-Serve Time To Pay Scheme

If you deferred paying your July 2020 Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by 3‌1‌‌ ‌‌January 2021. This may be a larger payment than you usually pay in January.

If you're unable to pay your Self-Assessment (SA) bill in full by 31‌‌ January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to us. If you have SA tax debts of up to £30,000, you'll able to access this Time to Pay facility through GOV‌.UK and will get automatic and immediate approval. If your SA debts are over £30,000, or you need longer than 12 months to repay your debt in full, you will still be able to use our Time to Pay arrangement by calling HMRC. 

Other business support schemes:

Changes to CJRS – what you need to do from 1‌‌ October

From 1‌‌ October, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work. 

You will continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself. 

The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in October, you are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap). You must still pay your employee at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours you’d need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion yourself. For help with calculations, search ‘Calculate how much you can claim using the Coronavirus Job Retention Scheme’ on GOV‌.UK.

You’ll also continue to pay your furloughed employees' National Insurance and pension contributions from your own funds. 

How the scheme works

You can use the Kickstart Scheme to create new 6-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment.

The job placements should support the participants to develop the skills and experience they need to find work after completing the scheme.

The Kickstart Scheme is available in England, Scotland and Wales.

What funding is available

Funding is available for:

• 100% of the relevant National Minimum Wage for 25 hours a week
• associated employer National Insurance contributions
• employer minimum automatic enrolment contributions

There is also £1500 per job placement available for setup costs, support and training.

If you are applying on behalf of a group of employers, you can get £300 of funding for each job placement to support with the associated administrative costs of bringing together these employers.

How to get the funding

Funding is available following a successful application process. Applications must be for a minimum of 30 job placements. If you are unable to offer this many job placements, you can find someone to apply on behalf of a group of employers to reach the minimum number.

Find out how you can represent a group of employers.

Who can apply for funding

Any organisation, regardless of size, can apply for funding.

The job placements created with Kickstart funding must be new jobs. They must not:

• replace existing or planned vacancies
• cause existing employees or contractors to lose or reduce their employment

The roles you are applying for must be:

• a minimum of 25 hours per week, for 6 months
• paid at least the National Minimum Wage for their age group
• should not require people to undertake extensive training before they begin the job placement

Each application should include how you will help the participants to develop their skills and experience, including:

• support to look for long-term work, including career advice and setting goals
• support with CV and interview preparations
• supporting the participant with basic skills, such as attendance, timekeeping and teamwork

Once a job placement is created, it can be taken up by a second person once the first successful applicant has completed their 6-month term.

How to apply

If you’re creating fewer than 30 job placements

If your organisation is creating fewer than 30 job placements, you cannot apply directly. You must find someone to apply on your behalf.

Other organisations could include:

• similar employers
• local authorities
• trade bodies
• registered charities

Find out more about becoming a representative for a group of employers.

You can contact your local or national Kickstart Scheme employer contact for help finding a someone who can support your involvement in the Kickstart Scheme.

Other help you can get

Kickstart is not an apprenticeship, but participants may move on to an apprenticeship at any time during, or after their job placement.

The Government is working on a hydrogen strategy, to be published next year, which will “deliver a world leading hydrogen market”, a top civil servant has said.

During an Environmental Audit Committee session yesterday (September 10), Business Secretary Alok Sharma confirmed that the forthcoming energy white paper will include plans for hydrogen and that will be followed by a detailed strategy early next year – ahead of the UK hosting the 26th UN Climate Change Conference (COP 26) in Glasgow in November.

Julian Critchlow, Director General for Energy Transformation and Clean Growth at the Department for Business Energy and Industrial Strategy (BEIS), said that the strategy will bring together the supply and demand side, and answered criticism that the UK is lagging behind other countries, such as Germany, Japan and Australia, in hydrogen development.

He said: “Far from being behind we believe that we’re actually putting the detailed and specific policy levers in place to be able to deliver a world leading hydrogen market.”

However, for the UK to achieve its goal of net zero greenhouse gas emissions by 2050 it will need to achieve hydrogen capacity of about 270 terawatt-hours, up from 27-terawatt-hours today.

Hydrogen to have ‘big role’ in decarbonising transport

Critchlow said that from a transport point of view, the Government sees hydrogen “having a big role”, especially for heavier vehicles.

He highlighted the £23 million programme with OLEV, which is looking at funding vehicles and refuelling stations, and the ultra-low emission bus scheme for hydrogen buses, along with the Prime Minister’s commitment for 4,000 new zero emission buses.

Business leaders have been campaigning for the Government to clarify its future hydrogen strategy and believe more needs to be done.

Jonny Goldstone, MD of Green Tomato Cars, one of the businesses backing the Hydrogen Strategy Now campaign, said that businesses need confidence in the development of the infrastructure.

Currently there are six hydrogen refuelling stations across the South East, with only one of those located in East London.

Goldstone, who has hydrogen, electric and hybrid vehicle in his 250-strong company-owned fleet, said: “We want London to lose its reputation as the ‘Big Smoke’.

“Our hydrogen vehicles emit zero CO2 emissions, whereas other vehicles are pumping out high volumes of carbon emissions every day. A widespread take-up of zero-emission hydrogen and battery electric vehicles is essential to improving air quality across the capital.

“We have 50 hydrogen cars and we’re looking to expand that number. But we want to have the confidence that the infrastructure will be there to allow us to operate consistently and efficiently for our drivers and customers.

“The refuelling network needs to expand to enable demand for hydrogen vehicles to increase, which in turn will lead to manufacturers producing more and greater customer uptake.”

Article courtesy www.smarttransport.org.uk

Monday 14 September, 2020 With just 15 weeks before the Brexit transition period expires, European automotive industry leaders have today joined forces to call for the EU and UK to secure an ambitious free trade agreement (FTA) without further delay. Negotiators on both sides must now pull out all the stops to avoid 'no deal' at the end of the transition, which according to new calculations would cost the pan-European automotive sector some €110 billion in lost trade over the next five years,1 putting jobs at risk in a sector that supports 14.6 million livelihoods, representing one in 15 of EU and UK jobs.2 

The lead organisations representing vehicle and parts makers across the EU, the European Automobile Manufacturers Association (ACEA) and the European Association of Automotive Suppliers (CLEPA), along with 21 national associations, including the Society of Motor Manufacturers and Traders (SMMT), German Association of the Automotive Industry (VDA), Comité des Constructeurs Français d'Automobiles (CCFA) and La Plateforme automobile (PFA), are today warning that the sector could face severe repercussions. Indeed, economies and jobs on both sides of the channel are at risk of a second devastating hit in the shape of no deal coming on top of around €100 billion worth of production lost so far this year due to the coronavirus crisis.3 

Without a deal in place by 31 December, both sides would be forced to trade under so-called World Trade Organisation (WTO) non-preferential rules, including a 10% tariff on cars and up to 22% on vans and trucks.4 Such tariffs – far higher than the small margins of most manufacturers – would almost certainly need to be passed on to consumers, making vehicles more expensive, reducing choice, and impacting demand. Furthermore, automotive suppliers and their products will be hit by tariffs. This will make production more expensive or will lead to more imports of parts from other competitive countries.  

Before the coronavirus crisis hit, EU and UK production of motor vehicles was running at 18.5 million units a year.5 This year some 3.6 million units have already been lost across the sector due to the pandemic.6 New calculations suggest that, for cars and vans alone, a reduction in demand resulting from a 10% WTO tariff could wipe some three million units from EU and UK factory output over the next five years, with losses worth €52.8 billion to UK plants and €57.7 billion to those based across the EU.7  Suppliers would also suffer from these changes. 

This combined loss in trade value would seriously harm revenues for a sector that is one of Europe's most valuable assets, employing millions of people and generating shared prosperity for all, with a combined trade surplus of €74 billion with the rest of the world in 2019. Collectively, the EU27 and UK automotive sector is responsible for 20% of global motor vehicle production and spends some €60.8 billion on innovation per year, making it Europe's largest R&D investor.8  

Achieving an ambitious EU-UK FTA with automotive-specific provisions is critical to the European automotive industry's future success. Any deal should include zero tariffs and quotas, appropriate rules of origin for both internal combustion engine and alternatively fuelled vehicles, plus components and powertrains, and a framework to avoid regulatory divergence.

Crucially, businesses need detailed information about the agreed trading conditions they will face from 1 January 2021 to make final preparations. This, combined with targeted support and an appropriate a phase-in period that allows for greater use of foreign materials for a limited period of time, will ensure businesses are able to cope with the end of the transition period.

Eric-Mark Huitema, ACEA Director General, said: "The stakes are high for the EU auto industry – we absolutely must have an ambitious EU-UK trade agreement in place by January. Otherwise our sector – already reeling from the COVID crisis – will be hit hard by a double whammy."

Sigrid de Vries, CLEPA Secretary General, said: "A 'no deal' Brexit would disrupt the integrated automotive supply chain and hit industry at a critical moment. The impact will be felt far beyond the bilateral trade streams alone, translating into a loss of jobs and investment capacity. The automotive sector is the EU's largest private R&D investor with €60 billion invested each year. We need a deal that maintains the sector's global competitiveness."

Mike Hawes, SMMT Chief Executive, said, "These figures paint a bleak picture of the devastation that would follow a 'no deal' Brexit. The shock of tariffs and other trade barriers would compound the damage already dealt by a global pandemic and recession, putting businesses and livelihoods at risk. Our industries are deeply integrated so we urge all parties to recognise the needs of this vital provider of jobs and economic prosperity, and pull out every single stop to secure an ambitious free trade deal now, before it is too late."  

Hildegard Müller, President of VDA, said: "The automotive industry needs stable and reliable framework conditions. It would be to the great disadvantage of both sides if the UK withdrawal were to end with the application of tariffs in mutual trade. This would jeopardise closely linked value chains and possibly make them unprofitable. Our member companies have more than 100 production sites in the United Kingdom. We hope that the EU and the UK will continue their close partnership - with a comprehensive free trade agreement."  

Thierry COGNET, President of CCFA, said, "A 'no deal' situation on 1 January 2021 would be particularly challenging for manufacturers. What we need from negotiators, in an economic context already very affected by the COVID crisis, is a substantial deal protecting us from tariffs, quotas and regulatory divergence." 

• ACAROM – Romanian Association of Automobile Builders acarom.ro
• ACEA – European Automobile Manufacturers Association acea.be
• ACS – Automotive Cluster of Slovenia acs-giz.si/en
• AFIA – Portuguese Manufacturers Association for the Automotive Industry afia.pt
• AIA – Czech Automotive Industry Association autosap.cz
• ANFIA – Italian Association of the Automobile Industry anfia.it
• AUTIG – Danish Automotive Trade & Industry Federation autig.dk
• BIL SWEDEN – Swedish Association of Automobile Manufacturers and Importers bilsweden.se
• CCFA – Committee of French Automobile Manufacturers ccfa.fr
• CLEPA – European Association of Automotive Suppliers clepa.eu
• FEBIAC – Belgian Federation of Automobile and Motorcycle Industries febiac.be
• FKG – Scandinavian Automotive Supplier Association fkg.se
• FFOE – Austrian Association of the Automotive Industry fahrzeugindustrie.at
• ILEA – Luxembourg Automotive Suppliers Association ilea.lu/
• MGE – Hungarian Vehicle Importers Association mge.hu
• PFA – French Association of the Automotive Industry pfa-auto.fr/
• RAI – Dutch Association for Mobility Industry raivereniging.nl
• SDCM – Polish Association of Automotive Parts Distributors and Producers sdcm.pl
• SERNAUTO – Spanish Association of Automotive Suppliers sernauto.es
• SIMI - Society of the Irish Motor Industry simi.ie/en
• SMMT – Society of Motor Manufacturers and Traders smmt.co.uk
• VDA – German Association of the Automotive Industry vda.de
• ZAP – Automotive Industry Association of the Slovak Republic zapsr.sk     

Brussels, 04/09/2020

While lockdown measures are lifted in Europe, the pandemic is still affecting our daily lives, our health, and our economy but also our industry. Indeed, according to ACEA, in June 2020, registrations of new passenger cars in the EU encountered a drop of 22.3% compared to the same month last year.

Update from HMRC:

From 1‌‌ September HMRC will now pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.

What you need to do now

• Continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself.
• The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in September, you are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
• Continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.

Make sure your data is right

It’s important that you provide all the data we need to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect, so we want to help you get this right. We will get in touch if we see any employee data missing from your previous claims.

Claiming for 100 or more employees: use our template

It’s really important to use the right file type when uploading your data. The easiest way to ensure your file is in the right format is to use our template. To find it search ‘download a template if you're claiming for 100 or more employees through the Coronavirus Job Retention Scheme’ on GOV‌.UK.

If your file is in the wrong format – for example, an incorrect file type or too many or too few columns – it may be rejected. If your file is rejected, you’ll receive a message to say it has not been accepted and your claim will not be processed.

Fraudulent claims  

We have started to investigate CJRS claims where fraud is suspected. We will be paying particular attention to claims that differ from the PAYE data we hold and where we have received reports of fraud. Employees are encouraged to report their employer if they have reason to believe that they are abusing the scheme. They can do this anonymously if they prefer. For more information go to GOV‌.UK and search 'report fraud to HMRC'.

More information

Guidance and live webinars offering you more support on changes to the scheme and how they impact you are available to book online – go to GOV‌.UK and search 'help and support if your business is affected by coronavirus'. 

Our phone lines and webchat are still very busy, so the quickest way to find the support you may need is on GOV‌.UK. This will leave our phone lines and webchat service open for those who need them most. 

Protect yourself from scams  

Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Search 'scams' on GOV‌.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.  

Do you have a Light Vehicle Maintenance and Repair Apprentice or perhaps have had one in the past or are maybe looking to take one on? We need your help to make sure that the qualifications your Apprentice takes are fit for purpose to do their job.

The IMI is reviewing the SVQ and Diploma Light Vehicle Maintenance and Repair Qualifications in Scotland at SCQF Level 5 and 7. In order to complete the process we’re looking for Light Vehicle employers to feed into the review. The more input we have the better the outcome of the process. 

It’s an incredibly important task, as the automotive landscape is changing rapidly with new technologies emerging, so this an opportunity to make sure qualifications reflect the industry’s changing landscape and that they are future proofed for employer needs over the next few years. 

We are looking for employers who would like to take part in an Expert Working Group to help review these qualifications. The main purpose of the group will be to review and give thoughts on the qualification structure, content plus evidence requirements and reach a consensus on any proposed changes.  

It will involve taking part in two Expert Working Group meetings; one at the beginning of the project to look at initial thoughts and a second following our wider consultation phase to agree the final changes.  

The first meeting will be held on Wednesday 16th September 2020 from 9:30am to 1pm. The second meeting is proposed to take place the week commencing the 30th November, but will be confirmed at a later date. Previously we’ve always held Expert Working Group meetings face-to-face, but given the current circumstances with COVID-19 we’ll be holding these remotely via Zoom or Microsoft Teams. Details on how to join the remote meetings will be given in advance of the meeting.

However if you would like to have your thoughts heard but are unable to commit to the Expert Working Group meetings we will also be holding wider online consultation. This’ll be done via an online survey or telephone discussions for anyone who would prefer to give feedback verbally. The wider consultation is planned to take place between 12th October and 6th November. 

If you would like to take part in the Expert Working Group or the wider consultation please email laurah@theimi.org.uk.

The First Minister has updated the Scottish Parliament today on the latest review of the COVID-19 restrictions.

Scotland is to remain in Phase 3 of the route map out of lockdown and indicative dates have been given for the reopening of further sectors of the economy in August and September.

The publication can be viewed here

Update from HMRC:

HMRC are reminding you about changes to the Coronavirus Job Retention Scheme (CJRS) from 1‌‌ September and what this means for you.  

What you need to do from 1‌‌ September

• From 1‌‌ September CJRS will pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.
• You will still need to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself.
• The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in September, you are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
• You will continue to have to pay furloughed employees’ National Insurance (NI) and pension contributions from your own funds.

Further guidance and live webinars offering you more support on changes to the scheme and how they impact you are available to book online – go to GOV‌.UK and search 'help and support if your business is affected by coronavirus'.

We are still receiving very high demand on our phone lines and webchat, so the quickest way to find the support you may need is on GOV‌.UK. This will leave our phone lines and webchat service open for those who need them most. 

Making sure your data is right

It’s important that you provide all the data we need to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect, so we want to help you get this right. We will get in touch if we see any employee data missing from your previous claims.

You can find everything you’ll need to help make your claim on GOV‌.UK, including a useful calculator and guidance on the data you need to provide and the format you need to use to ensure your claim is accepted. Search for ‘claim for wages through the Coronavirus Job Retention Scheme’.

If you’re claiming for 100 or more employees, please download and use our template as this will help you make sure your data is right – search 'download a template if you're claiming for 100 or more employees through the Coronavirus Job Retention Scheme' on GOV‌.UK.

Finding previous CJRS guidance

We’ve recently updated our CJRS guidance to make it easier for you to find the most relevant, up-to-date information.

If you need to check older guidance – for example, information for your claims ending on or before 30 June – you can search 'check if you can claim for your employees' wages through the Coronavirus Job Retention Scheme' or 'check which employees you can put on furlough to use the Coronavirus Job Retention Scheme' on GOV‌.UK. A link to previous guidance can be found in boxes at the top of these pages.

Used car pricing in the UK was the strongest in Europe in July, new data has revealed.

Used car prices rose on average by 1.7 per cent helped by a 22 per cent shortfall in used stock in the market compared with April 1, Indicata’s latest report shows.

Sales fell by 1.8 per cent in July as a result of this stock shortage compared with a 3.7 per cent rise in June.

Consumer appetite for electric and hybrid cars continued, said the firm, with sales up 53.5 per cent and 51.2 per cent year-on-year respectively, while six-nine-year old used cars continue to be the most popular.

Prices of electric cars in July rose by £2,525 to £13,688 and hybrids by £1,461 to £16,156 compared with Q2, although supply was very limited.

In contrast to many other European markets, Indicata found luxury cars and SUVs are the UK’s strongest market segments experiencing a 11.5 per cent and 11 per cent increase year-on-year.

‘July was a very busy month with demand exceeding supply,’ said Indicata group sales director, Jon Mitchell.

‘There are signs from some of our vendor customers that supply is starting to increase coming into August. With the new plate change in September we should also see new part exchange stock coming into the market.

‘Despite that increase in supply prices look as though they will be strong during the summer, but we will have to wait to see how economic conditions will impact prices during the autumn.’

The average asking price in July for a Peugeot 2008, up to one year old and in Allure, petrol, manual trim was £15,368 – £2,550 or 19.9 per cent more than in June.

Used car prices are expected to take a turn downwards, though.

Article courtesy - Car Dealer Magazine
cardealermagazine.co.uk/publish/used-car-pricing-in-the-uk-was-the-strongest-in-europe-in-july-as-demand-exceeded-supply

Cox Automotive:

Please find our monthly overview of the car market along with the results and supporting dealer sentiment survey – summer 2020 COVID-19 attached.

This month:

• Optimism remains in the industry that demand within the used market will continue
• Desirable retail stock remains in high demand
• Many retailers are reporting that they are pleasantly surprised with the market’s performance

Update from HMRC:

We’re writing to let you know that we have published additional information on the Job Retention Bonus, including details on how to check if you’re eligible and what you need to do now to get ready to claim.

You can find this by going to GOV‌.UK and searching ‘Job Retention Bonus – Policy Statement’.

Job Retention Bonus

Employers will be able to claim a one-off payment of £1,000 for every employee they have previously received a grant for under the Coronavirus Job Retention Scheme (CJRS), and who remains continuously employed through to the end of Ja‌nu‌ar‌y 2021.

To be eligible, the employee must have received earnings in November, December and January, and must have been paid an average of at least £520 per month, and a total of at least £1,560 across the three months.

As the employer, you will be able to claim the bonus after you have filed PAYE information for Ja‌nu‌ar‌y 2021, and the bonus will be paid from Fe‌br‌ua‌ry 2021. More detailed guidance, including how you can claim the bonus online, will be available by the end of September.

What you need to do now

If you intend to claim the Job Retention Bonus you must:

• ensure all your employee records are up to date;
• accurately report employees’ details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system;
• make sure all of your CJRS claims have been accurately submitted and you have told us about any changes needed (for example if you’ve received too much or too little).

Reminder of changes to CJRS

From 1 Au‌gu‌st 2020 CJRS continues to provide grants for furloughed employees but no longer funds employers’ National Insurance (NI) and pensions contributions. You now have to make these payments from your own resources for all employees, whether furloughed or not. Our guidance has been updated to reflect these changes.

Further guidance and live webinars offering more support on changes to the scheme and how they impact you are available to book online – go to GOV‌.UK and search 'help and support if your business is affected by coronavirus'. 

Please only contact us if you can’t find the information you need from GOV‌.UK. This will leave our phone lines and webchat service open for those who need them most. 

Making sure your data is right

It’s important that you provide the data we need to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect. We may be in touch to request employee data if it’s missing from your previous claims.

National Insurance numbers

You need to provide a National Insurance number (NINO) for all employees as part of your CJRS claim. The only exception is in the very limited circumstances where an employee genuinely does not have a NINO, for example if they are under 16 years old.

If you are claiming for an employee whose NINO you don’t currently know, you can check their number by searching GOV.UK for 'Check a National Insurance Number using basic PAYE Tools'.

We can no longer accept claims for fewer than 100 employees by phone where you do not have all employee NINO's unless the employees you are claiming for genuinely do not have these.

Claimed too much in error?

If you have claimed too much for a CJRS grant and have not repaid it, you must notify us and repay the money by the latest of whichever date applies below:

• 90 days after receiving the CJRS money you’re not entitled to
• 90 days from when circumstances changed so that you were no longer entitled to keep the CJRS grant
• 20 Oc‌to‌be‌r 2020 if you received CJRS money you’re not entitled to or if your circumstances changed on or before 22 J‌ul‌y.

If you do not do this, you may have to pay a penalty. We do understand mistakes happen, particularly in these challenging times, and will not seek out innocent errors and small mistakes for compliance action. We will act, however, against anyone who deliberately sets out to defraud the system or claims money they aren’t entitled to.

How to let us know about claiming too much

If you have received more than you are entitled to, you can let us know as part of your next online claim without needing to call us – the system will prompt you to add details on if you have received too much. For more information, search for ‘if you claim too much or not enough from the Coronavirus Job Retention Scheme’ on GOV‌.UK.

If you received too much and do not plan to submit further claims – or you have claimed less than you were entitled to – please contact us by searching 'Contact HMRC' on GOV‌.UK.

The Scottish Government has today (Wednesday 5 August) published responses to the Advisory Group on Economic Recovery (AGER) report and the Enterprise and Skills Strategic Board (ESSB) report.

Our responses include targeted measures to build a stronger, fairer and greener economic future for Scotland in the wake of coronavirus (COVID-19).

The AGER response also confirms that we have accepted recommendations from the Enterprise and Skills Strategic Board on enhanced partnership working with Industry Leadership Groups.

The responses can be viewed here:

Economic Recovery Implementation Plan: The Scottish Government's response to the Advisory Group on Economic Recovery

The Scottish Government’s response to the Report by the Enterprise & Skills Strategic Board sub-group on measures to mitigate the labour market impacts from COVID-19

Update from HMRC:

We’re writing to remind you about changes to the Coronavirus Job Retention Scheme (CJRS) from 31 J‌ul‌y and what to do if you have claimed too much.

What you need to do before 31 J‌ul‌y

• Submit your CJRS claim for periods ending on or before 30 June 2020 by 31 J‌ul‌y 2020. This is the last date you can make those claims. You need to have made a claim at any point on or before 31 J‌ul‌y to be able to make a claim for future months.
• Amend your previous claims to add any additional employees you may have missed off in error. After 31 July you will not be able to add any new employees for periods ending on or before 30 June.

What you need to do from 1 Au‌gu‌st

• From 1 Au‌gu‌st 2020 the scheme will no longer fund employers’ National Insurance (NI) and pensions contributions. You will have to make these payments from your own resources for all employees, whether furloughed or not.

Live webinars offering more support on changes to the scheme and how they impact you are available to book online – go to GOV‌.UK and search 'help and support if your business is affected by coronavirus'. 

Please check GOV‌.UK and join one of our webinars if you need further help. This will leave our phone lines open for those who need them most. 

Make sure your data is right

It’s important that you provide the data we need to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect.

Claimed too much in error?

If you have claimed too much for a CJRS grant and have not repaid it, you must notify us and repay the money by the latest of whichever date applies below:

• 90 days of receiving the CJRS money you’re not entitled to
• 90 days of when circumstances changed so that you were no longer entitled to keep the CJRS grant
• 20 Oc‌to‌be‌r 2020 if you received CJRS money you’re not entitled to, or if your circumstances changed, on or before 20 J‌ul‌y.

If you do not do this, you may have to pay a penalty.

How to let us know about claiming too much

You can let us know as part of your next online claim without needing to call us – the system will prompt you to add details on if you have received too much.

If you received too much and do not plan to submit further claims – or you have claimed less than you were entitled to – please contact us by searching ‘Contact HMRC' on GOV‌.UK.

We are supporting our customers while tackling serious fraud and criminal attacks. We understand mistakes happen, particularly in these challenging times, and will not seek out innocent errors and small mistakes for compliance action. For more information, search for ‘if you claim too much or not enough from the Coronavirus Job Retention Scheme’ on GOV‌.UK.

Claiming for 100 or more employees?

Please use our standard template to submit your employees’ details. It is important that you submit the correct data (including National Insurance numbers) in the correct format.

You can find the template on GOV‌.UK by searching ‘Job Retention Scheme template download’.

Looking for help to work out your claim?

Please use our online calculator to help you calculate your next claim.

You can find this and guidance on how to use it by searching ‘calculate how much you can claim using the Coronavirus Job Retention Scheme’ on GOV‌.UK.

Over the last year, DVSA's staff have worked hard to help everyone stay safe on Britain's roads.  Please see below a letter from Gareth Llewellyn, DVSA Chief Executive, presenting the ‘We are DVSA: Annual Review 2019 to 2020’. 

The review demonstrates we achieved all our Business Plan objectives this year, but, along with the rest of the world, we’ve been affected by the coronavirus (COVID-19) pandemic. It also sets out the significant improvements we have made to our services, contributing to our vision of safer drivers, safer vehicles and safer journeys for all.

We recognise that stakeholder engagement, collaboration and continuous improvement are essential to road safety.  Because of coronavirus, the future is not as certain as it could be, but we look forward to working with you during 2020 to 2021. We will learn from the impact of the pandemic and review our 5-year strategy in its light. Together, we will continue to keep people safe on Britain’s roads.

HMRC Update:

We’re writing to remind you about key dates for the Coronavirus Job Retention Scheme (CJRS) and actions you might need to take.

Key dates

• Submit your CJRS claim for periods ending on or before 30‌‌‌ ‌June 2020 by 31‌‌‌ ‌July 2020. This is the last date you can make those claims. You need to have made a claim at any point on or before 31‌‌‌ ‌July to be able to make a claim for future months.
• From 1‌‌‌ ‌August 2020 the scheme will no longer fund employers’ National Insurance (NI) and pensions contributions for furloughed employees. You will have to make these payments from your own resources.
• From 1‌‌‌ ‌September 2020 you will have to start contributing to the wages of your furloughed employees. Grants will be for 70% of usual wages in September and 60% in October, but furloughed employees will continue to be entitled to receive at least 80% of their usual wages. You will have to make up the difference from your own resources.

Live webinars offering more support on changes to the scheme, and how they impact you, are available to book online – go to GOV‌‌‌‌.UK and search 'help and support if your business is affected by coronavirus'.

Please check GOV‌‌‌.UK and join one of our webinars if you need further help. This will leave our phone lines open for those who need them most.

Make sure your data is right

It’s important that you provide the data we need to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect.

If you are claiming for 100 or more employees, please use our standard template to submit your employees’ details. It is important that you submit the correct data (including National Insurance numbers) in the correct format.

You can find this template by searching 'Job Retention Scheme template download' on GOV‌‌‌‌.UK.

More information about the Job Retention Bonus

We wrote to you recently about the introduction of the Job Retention Bonus – a one-off payment of £1,000 to employers who have claimed under CJRS for each furloughed employee who remains continuously employed until at least 31‌‌‌ ‌January 2021.

More information about this scheme will be available on 31‌‌‌ ‌July.

Incorrect claims

CJRS grants are to cover the costs of your furloughed employees' wages (and related payroll taxes, National Insurance and pension contributions until 31‌‌‌ ‌July). We may withhold or recover grants if they are claimed based on dishonest or inaccurate information.

We’re contacting a number of employers at the moment to check that they have claimed the correct amount.

If you have made an incorrect claim that meant you claimed too much, you can let us know as part of your next online claim without needing to call us. If you have made an error and do not plan to submit further claims, or you have claimed less than you were entitled to, please contact us by searching 'Contact HMRC' on GOV‌‌‌‌.UK.

Mandatory MOT testing is to be reintroduced from 1 August 2020 as COVID-19 restrictions are slowly lifted, Roads minister Baroness Vere has announced today (29 June 2020).

Due to the coronavirus outbreak, drivers were granted a 6-month exemption from MOT testing in March to help slow the spread of the virus. However, as restrictions are eased when safe to do so, all drivers whose car, motorcycle or van is due for an MOT test from 1 August will be required to get a test certificate to continue driving their vehicle.

MOT tests are important for road safety and ensure that vehicle parts, including tyres, seatbelts, brakes, lights and exhausts, are in proper working order.

Drivers with an MOT due date before 1 August will still receive a 6-month exemption from testing. However, all vehicles must continue to be properly maintained and kept in a roadworthy condition, and people are able to voluntarily get their MOT sooner should they wish, even if they are exempt from the legal requirement. Motorists can be prosecuted for driving an unsafe vehicle.

Roads Minister Baroness Vere said:

As people return to our roads, it is vital that motorists are able to keep their vehicles safe. That’s why as restrictions are eased, from 1 August MOT testing will again become mandatory.

Garages across the country are open and I urge drivers who are due for their MOT to book a test as soon they can.

Only some garages remained open to conduct essential services during the coronavirus outbreak, but now over 90% are open across the country. Testing capacity has already reached 70% of normal levels and is steadily increasing.

While exemptions are still available for vehicle owners with an MOT due date before 1 August, it is vital that drivers still take their vehicle to be checked if they notice something is wrong in the same way that they usually would.

If drivers are vulnerable or self-isolating they should contact their local garage as many are offering pick-up and drop-off services, so drivers can get their car checked without having to visit a garage.

The Driver and Vehicle Standards Agency (DVSA) has also issued guidance to all MOT testers about safely conducting tests in line with the latest government advice.

SMTA today sought clarification from the Scottish Government to find out if the easing of restrictions going into Phase 2 meant that car showrooms could now open. Sadly, we have been advised that this is not the case and from the letter below you will see that this has been given a date of 29 June, this is hugely disappointing news for the Scottish motor trade.

Letter received from Scottish Government below:



Dear Sandy,

Thank you for your e-mail to the Cabinet Secretary for Economy, Fair Work and Culture. I have been asked to respond on her behalf.

In previous correspondence to you of 8 June, the Economy Secretary confirmed car showrooms would be permitted to reopen part of their sales area in Phase 2, in line with physical distancing guidelines. As outlined in this letter, our guidance is updated and reviewed every three weeks in line with the Scottish Government's lockdown review process

Following today’s announcement by the First Minister and publication of the Updated Route Map which outlines the order in which we will carefully and gradually lift lockdown restrictions, I can confirm that all street-access retail throughout Scotland can re-open from 29 June. This includes car showrooms.

Please note, this updated guidance no longer places a restriction on the size of sales area permitted to reopen. For clarity, this means that the previous restriction whereby units larger than 800m2 would have to wait until Phase 3 to reopen no longer applies.

I hope you find this information helpful.

Yours sincerely,

Scottish Government

Update from HMRC:

As part of the government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties. Payment of VAT falling due between 20‌‌ March and 30‌‌ June 2020 can be deferred until 31‌‌ March 2021.

You must continue to file your VAT return on time, even if you defer payment.

We're writing to remind you that the option to defer paying VAT ends on 30‌‌ June 2020. This means that VAT returns with a payment due date after 30‌‌ June must be paid in full, on time.

If you haven't deferred any VAT payments, you don't need to take any further action. If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.

You should do this at least three working days before submitting your VAT return in order for HMRC to take payment. For further details go to GOV‌‌.UK and search for 'Pay your VAT bill'.

Please do not call us for more information, everything you need to know is on GOV.UK. This will leave our phone lines open for those who need them most.

Remember, any VAT payments you have deferred during this period should be paid in full on or before 31‌‌ March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.

If you're unable to pay the VAT due and need additional time to pay, please contact HMRC before the payment is due. For help go to GOV‌‌.UK and search for 'If you cannot pay your tax bill on time', or call 0300 200 3835. If you do call, please quote 'V1'.

HMRC Update:

What the new online guidance covers

The guidance includes:

• changes to the scheme and key dates that you need to be aware of
• how you can claim if you bring previously furloughed employees back to work part-time from 1‌‌ July (known as flexible furloughing) and how many employees you can claim for in any one claim
• how to claim, and the information you’ll need to do so
• how to work out how much you can claim, including an online calculator to help you
• more information on amending your claim.

Webinars offering more support on changes to the scheme and how they impact you are now available to book online – go to GOV‌‌‌.UK and search 'help and support if your business is affected by coronavirus'.

We’d be grateful if you don’t call us for more information. All details are on GOV‌‌.UK and in our webinars. This will leave our phone lines open for those who need them most.

What you need to do now

• read the guidance to see how changes to the scheme impact you, using the calculator to understand how much you’ll be able to claim
• book a webinar via GOV‌‌.UK if you’d like more support
• consider which employees you want to keep on full-time furlough and which employees will come back to work – on what hours – to agree arrangements with them as needed for your business.

What you need to do from July

• start your flexible furloughing of employees from 1‌‌ July onwards. You can decide the hours and shift patterns they work to suit the needs of your business – you’ll pay their wages for the time they’re in work and can apply for a job retention scheme grant to cover any of their usual hours they are still furloughed for. You can still keep employees on full furlough if you need to
• claim for periods ending on or before 30‌‌ June, by 31‌‌ J‌ul‌y – this is the last date you can make those claims
• claim for further furlough periods as needed – the first time you will be able to make a claim for days in July will be 1‌‌ July.

The Scottish Motor Trade Association (SMTA) has said that the politics of COVID-19 North of the border will cost car dealers financially and result in disproportionate job losses across the UK's devolved regions.

The National Franchised Dealers Association (NFDA) revealed the contents of a letter from Cabinet Secretary for Economy, Fair Work and Culture, Fiona Hyslop MSP, which clearly stated that click and collect car sales could be completed during Scotland’s COVID-19 lockdown - provided customers do not enter the showroom environment.

Furthermore, it stated that retailers “may open up to 800 m2 of their sales area, permitting some larger retail outlets such as car showrooms to re-open in Phase 2” of the country’s re-opening plan, which is expected from June 18.

But SMTA CEO, Sandy Burgess, has despaired at the lack of clarity from the Scottish Government to date and said that Scottish car retailers, and the economy, stand to lose out due to the disparity between COVID-19 policy across the UK's devolved nations in a week that saw dealers in England re-open their showroom doors to customers.

“We have been left in a political situation and that shouldn’t be the case,” said Burgess. “This is a health crisis first and foremost, then an economic crisis. The last thing COVID needs to be turned into is a political crisis.”

Burgess said that the decision to keep car showrooms in Scotland closed as their English counterparts re-opened would cost SMTA members financially.

Stalling the ability to trade would dent revenues and also see Scottish dealers suffer more severely from the start of used car pricing movements as the larger English car market begun to trade once again.

And where the NFDA finally received their clarification on Scottish automotive retail’s re-opening schedule this week, Burgess said that many of his numerous questions directed to the Scottish Government in written correspondence remained unanswered.

He said: “Our members have been put in a position where they cannot even plan for a return to showrooms trading as their English counterparts start to ramp-up their operations.

“It’s short-sighted and I fear it will cost the sector economically and in the form of jobs.”

In a public address yesterday (June 4), Scottish First Minister Nicola Sturgeon said that “alongside a public health emergency, we are also now dealing with an economic emergency, on a scale none of us have experienced”.

Sturgeon highlighted the allocation of £2.3 billion to help businesses in Scotland through measures such as grants and business rates relief, “in addition to welcome UK Government measures such as the furlough scheme”.

As of yesterday, Scottish traders are also a little clearer about the scope of their current ability to trade and their showroom re-opening plans, although larger dealerships may still have questions about the legislation.

In her latter to the NFDA, Fiona Hyslop MSP wrote: “This guidance states that retailers may open up to 800 m2 of their sales area, permitting some larger retail outlets such as car showrooms to re-open in Phase 2. Retail units larger than 800sq-m will be permitted to open in Phase 3.

“Each business will need to translate this guidance into the specific actions it needs to take depending on the nature of their business (i.e. the size and type of business, how it is organised, operated, managed and regulated).

“Our guidance has been designed to be applied to cover the spectrum of different retailers in Scotland and we have prepared an operational guide for retailers which includes a downloadable checklist with actions to consider.”

Hyslop added: “As you can appreciate, this is a rapidly evolving situation and our guidance will be updated and reviewed every three weeks in line with the Scottish Government's lockdown review.”

Credit: AM Online

As part of changes to the Coronavirus Job Retention Scheme (CJRS), They've outlined below important dates that may impact you in the coming weeks.

Important dates – what you need to know now

• The scheme will close to anyone who hasn’t been furloughed for 3 weeks by 30 June, so you will only be able to claim for employees after that if they have been furloughed for a full three-week period at any time before the end of June.
• So, if you intend to furlough an employee who hasn’t been furloughed before, you will need to agree that with them and start their period of furlough on or before 10 J‌un‌e – this is the last day on which someone who has never been furloughed before can start a period of furlough and qualify for the scheme – this ensures the minimum three-week period is complete by 30 J‌un‌e.
• You will then have until 31 J‌ul‌y to make a claim for any periods of furlough up until 30 J‌un‌e – this applies to both employees furloughed for the first time and those you have previously furloughed and claimed for.

The future of the scheme

• The rules of the scheme are changing from 1 J‌ul‌y.

• On 12 J‌un‌e, we’ll publish full guidance on all the scheme changes on GOV.UK – search for 'Coronavirus Job Retention Scheme' to find this – webinars offering more support on the changes will also be available to book online from 12 June – please do not call us for more information, as everything you need to know about the scheme changes will be published online on GOV‌.UK.
• From 1 July, you’ll have the flexibility to bring previously furloughed employees back to work part time, you can decide the hours and shift patterns they work to suit the needs of your business – you’ll pay their wages for the time they’re in work and can apply for a scheme grant to cover any of their normal hours they are still furloughed for.
• Also, for periods starting on or after the 1 J‌ul‌y, the maximum number of employees you can claim for in any period cannot be higher than the maximum number you have claimed for in a previous period. For example, if your highest single claim for periods up to 30 J‌un‌e was for 100 people, you can’t claim for more than this number in later periods.
• From 1 Au‌gu‌st, you will need to contribute towards the wage costs of your furloughed employees until the scheme ends on 31 Oc‌to‌be‌r.

Making changes to your claims if you have over-claimed

If you’ve made an error in a CJRS claim that means you received too much money, you must pay this back to HMRC.

We’ve updated the application system so you can tell us if you have over-claimed in a previous claim – when you apply you’ll be asked if you need to reduce the amount to take account of a previous error. Your new claim amount will be reduced to reflect this. You should then keep a record of this adjustment for six years.

If you have made an error in a CJRS claim and do not plan to submit further claims, we are working on a process that will allow you to let us know about your error and pay back any amounts that you have over-claimed. We will update guidance and keep you informed when this is available.

We are conscious that a number of our smaller members will be in need of increased professional support on employment and personnel issues during these difficult times.  With this in mind, and in conjunction with our partners, Just Employment Law, the SMTA is pleased to be able to offer all members with up to 10 employees, unlimited expert employment law advice and support from JEL on a retainer basis for a 6 month period – all for a fixed fee of £500 plus VAT (this can be paid in monthly instalments).

Each member who takes up this offer will be assigned their own solicitor from JEL’s experienced team and the retainer will also include unlimited drafting on employment matters as well as the drafting of contracts and staff handbooks.  The offer is open to any SMTA member with up to 10 employees and the promotion will run throughout the months of June and July. 

Members wishing to take advantage of this offer should contact JEL directly on 0141 331 5150 / enquiries@justemploymentlaw.co.uk quoting “SMTA6”.  Preferential rates are also open to SMTA members who have more than 10 employees and who are in need of support at this time and JEL can be contacted via the same contact details.

SCOTLAND’S automotive industry chiefs have called on the Holyrood Government to allow the immediate reopening of dealerships.

Scottish Motor Trade Association (SMTA) chief executive Sandy Burgess told Road Record: “Our message to Ministers is that we’re ready to go now. All dealers have taken very robust measures to tackle the coronavirus threat and are all set for appointment-only opening, and we want to help kick-start the economy.”

He said the steps taken by SMTA members to make their premises as safe as possible for consumers and staff went way beyond anything customers would experience in a garden centre. He pointed out that, unlike at garden centres, queues wouldn’t be a problem for those buying a new car.

In writing to the First Minister, Mr Burgess had foreseen Prime Minister Boris Johnson’s announcement earlier this week that showrooms in England could open from June 1.

He emphasised that car retailers were able to embrace proper levels of hygiene and safety and, as large, relatively open spaces, were well equipped to provide ample social distancing and control measures to protect both the workforce and public.

He also asked the Scottish Government to allow a “click and collect” system such as that being run in England. He said this would enable a backlog of cars waiting to be delivered to be shifted from the forecourts.

https://www.dailyrecord.co.uk/lifestyle/motoring/scotlands-car-dealers-are-raring-22102998

Peugeot Austria has abused market power vis-à-vis dealers

In a long-standing legal dispute between the Upper Austrian Peugeot dealer Büchl and Peugeot Austria (PSA), the Cartel Court ruled on 12 May at first instance that the general importer for Peugeot vehicles in Austria had infringed the prohibition of abuse of market power. The Büchl company had turned to the Cartel Court because it - like numerous other Peugeot dealers in Austria and Europe - had suffered from oppressive requirements imposed by PSA which caused it serious economic disadvantages and called into question its independence as an authorised Peugeot dealer.

In its decision, the Cartel Court applies not only Austrian but also European cartel law and makes extensive findings on the problematic business policy of the Peugeot brand. The Büchl case thus also has a signal effect for the dealer networks of other brands in Austria and throughout Europe.

Specifically, the court prohibited the Peugeot brand in the distribution of new cars from economically forcing the dealer to participate in promotions and thus restricting his freedom to set prices for the end customer; from linking bonus payments to the dealer to customer satisfaction surveys; from reducing the dealers' margins if they deliberately fail to achieve sales targets that PSA has deliberately exaggerated; and from competing with the dealers on the end customer market through PSA's own operations with subsidised vehicle prices. A costly control system and hourly rates that do not cover costs were banned in the workshop business, making warranty and guarantee work economically unprofitable for the dealers. Ultimately, PSA must not continue to pass on the costs of its mystery shopping and audit system for new cars and workshops to the dealers.

The Bundesgremium Fahrzeughandel and the Bundesinnung der Fahrzeugtechnik der WKÖ, the Verband österreichischer Kraftfahrzeugbetriebe (VÖK) and the Österreichischer Peugeot-Händlerverband (Austrian Peugeot Dealers Association) welcome the decision and the statements of the Cartel Court, which can be generalised and are groundbreaking beyond the individual case, as an important step towards more fairness in the manufacturer-dealer relationship in Austria and Europe. An appeal by PSA is expected.

CommR Ing. Klaus Edelsbrunner, Federal Chairman of the Board of Management of the Vehicle Dealerships underlines, "It is important that the Cartel Court has now answered a legal question that has been unclear for a long time, at least in the first instance. This at least provides guidelines for correct market conduct based on both Austrian and European law and is therefore groundbreaking for the entire industry and all brands throughout Europe".

KommR Ing. Josef Schirak, spokesman for the motor vehicle retail trade, says: "For many years now, the balance of power between manufacturer/importer and vehicle operation has been deteriorating more and more at the expense of dealers. The Cartel Court has now clarified that in many cases there has been an abuse of market power. He therefore expects the manufacturers/importers to react and to comply with the ruling of the Cartel Court and, for example, to adapt the dealer contracts. "This has clarified a longstanding development in the contractual relationship between manufacturer/importer and authorised dealers", Schirak concluded.

KommR Josef Harb, Federal Guild Master of Automotive Engineering, is pleased that this decision has not only focused on the trade in vehicles, but also on maintenance and workshop operations.

Stefan Hutschinski, Chairman of the Association of Austrian Motor Vehicle Manufacturers (VÖK) clarifies: "This is an enormously important ruling by the Cartel Court in favor of motor vehicle companies, especially now. The pressure from the manufacturers on the companies has been increasing every year - many demands have been made which are extremely questionable from an economic and antitrust point of view. This ruling is a release and the first step in the right direction. All manufacturers throughout Europe are now called upon to orientate their cooperation in a commercially reasonable and antitrust clean way

The Büchl company was represented in the proceedings before the Cartel Court by the Viennese law firm of Dr. Peter Thyri, which specialises in Austrian and European cartel and competition law.

Update from HMRC:

We’re writing to let you know that the coronavirus Statutory Sick Pay Rebate Scheme will launch online on 26 May.

The scheme will enable employers with fewer than 250 employees to claim coronavirus-related Statutory Sick Pay (SSP). Tax agents will also be able to make claims on behalf of employers.

You’re eligible to use the scheme if:

• you’re claiming for an employee who’s eligible for sick pay due to coronavirus
• you had a PAYE payroll scheme in operation before 28 February 2020
• you had fewer than 250 employees across all PAYE schemes on 28 February 2020
• you’re eligible to receive State Aid under the EU Commission Temporary Framework.

The repayment will cover up to two weeks of the applicable rate of SSP, and is payable if a current or former employee was unable to work on or after 13 March 2020 and entitled to SSP, because they either:

• have coronavirus
• are self-isolating and unable to work from home
• are shielding because they’ve been advised that they’re at high risk of severe illness from coronavirus.

To prepare to make a claim, you should keep records of all the SSP payments you wish to claim for.

For more information about eligibility and how employers can prepare to use the scheme, please visit GOV.UK and search 'Check if you can claim back Statutory Sick Pay paid to employees due to coronavirus (COVID-19)'.

Please only call us if you cannot find the support you need on GOV.UK advice pages or through our webchat service – this will leave our lines open for those who need our help most.

You can find out more about this coronavirus support measure, and others such as HMRC’s Job Retention Scheme, by signing up to one of our webinars. For more information please visit GOV.UK and search for 'Help and support if your business is affected by coronavirus (COVID-19)'.

A word about scams

We are aware of an increase in scam emails, calls and texts. If someone gets in touch claiming to be from HMRC, saying that financial help can be claimed or that a tax refund is owed, and asks you to click on a link or to give information such as your name, credit card or bank details, please do not respond. You can forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.

It’s nearly a month since the Coronavirus Job Retention Scheme (CJRS) opened and many businesses will be preparing to make another claim in order to receive money by the end of May.

To ensure you receive a payment by the end of May, you need to apply by Wednesday 20‌‌ May.

When you make a claim through the Coronavirus Job Retention Scheme, you’ll receive the money within six working days.

After making a claim, please keep all records and calculations, in case we need to contact you to discuss these.

Update on the scheme

On 12 May, the Chancellor Rishi Sunak announced that the CJRS scheme will be extended until the end of October. The scheme will continue in its current form until the end of July.

From 1‌‌ August to the end of October, we will introduce more flexibility so employers will be able to bring their furloughed employees back to work part-time and contribute to paying employees' wages while still receiving support from the scheme.

These measures will apply across all regions and sectors in the UK economy, and we expect to publish more details of how this will work by the end of May.

Guidance and support

In the meantime, more information is available online to help you apply – go to GOV‌.UK and search 'Coronavirus Job Retention Scheme'.

Online guidance has recently been updated with:

• more information for furloughed employees
• the work furloughed company directors can undertake
• what time periods you can claim for
• more detail on non-discretionary payments, holiday pay and record keeping.

Our webinars are also available to help you, and there are two about the Coronavirus Job Retention Scheme on our YouTube channel 'HMRCgovuk' – an overview of the scheme and a detailed session about how to make a claim. You can book a place on a live webinar by going to GOV‌.UK and searching 'help and support if your business is affected by coronavirus'.

Please remember that grants are only intended for the payment of employees' salaries and related National Insurance, and pension contributions.

Payments may be withheld or need to be repaid in full if based on dishonest or inaccurate information or found to be fraudulent, and we may call you to check the details of your claim.

Protect yourself from scams

Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Don't give out private information or reply to text messages, and don't download attachments in emails you weren't expecting. Search 'scams' on GOV‌.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.

• New automotive sector-specific guidance for aftermarket providers published by GEA, IAAF, IMI, SMTA and SMMT today.

• MOT testers and service and repair sector ready to welcome back more customers with comprehensive COVID-19 safety measures across all points of interaction.

• Sector can cope with significant ramp-up in demand but calls for end of six-month MOT extension as soon as possible.

The UK automotive aftermarket sector has signalled its readiness to cope with increased demand for MOT tests, service, maintenance and repair with the publication of new sector-specific guidance1 by the Garage Equipment Association (GEA), Independent Automotive Aftermarket Federation (IAAF), Institute of the Motor Industry (IMI), Scottish Motor Trade Association (SMTA) and the Society of Motor Manufacturers and Traders (SMMT).

Although workshops have been allowed to stay open throughout the lockdown, helping to keep vehicles roadworthy for essential journeys, the new guidance will help companies of all types and sizes in the aftermarket operate safely while minimising the risk of Covid-19 transmission.

The best-practice guidance covers the entire aftermarket sector, including workshops, warehouses, mobile operations and parts distributors. It covers every aspect of their operations, from clear communications with customers and colleagues to social distancing, sanitisation and hygiene, and collection/delivery of vehicles from vulnerable owners. It is designed to complement government advice and help the aftermarket sector demonstrate safe practices for employees and customers across all points of interaction. It comes as vehicle mileages start to climb and the sector calls for an end to the six-month MOT extension.

Courtesy SMMT.