Government Spring Statement: measures affecting the aftermarket

Date: Friday 25 March 2022

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A full list of the Spring Statement measures that affect aftermarket businesses are set out below.

Fuel Duty
Cutting fuel duty on petrol and diesel by 5p per litre for 12 months.

The government says it represents a £5 billion saving over the next 12 months worth around:

1. £200 for the average van driver
2. £1,500 for the average haulier

Employment
Increasing the Employment Allowance from £4,000 to £5,000

• Employment Allowance is a relief which allows eligible businesses to reduce their employer National Insurance contributions (NICs) bills each year
• This will be rising by £1,000 from £4,000
• Around 495,000 businesses (30% of all businesses) will benefit from this increase, including around 50,000 businesses (3% of all businesses) which will be taken out of paying NICs

Business rates & Tax
The govt has brought forward an exemption on business rates for green technology

• Making green technology, including solar panels and heat pumps, exempt from business rates from April 2022 will save businesses an extra £35 million in 2022-23, and is expected to be worth around £170m over the next five years to support the decarbonisation of buildings

Reforming R&D tax credits to help drive innovation

• From April 2023, business will be able to claim relief on the storage of their vital data and pure maths research
• This is set to boost sectors where the UK is a world-leader, including AI, robotics, manufacturing, and design
• Draft legislation will be published this summer

The super deduction
Plans announced to encourage greater business investment once the super-deduction ends in 2023:

• The govt announced a series of potential policy changes to the UK’s existing capital allowances regime, which the government will consider ahead of April 2023.

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