The UK automotive industry is today calling on government to allow new car showrooms to reopen as a matter of urgency, as the SMMT reveals the £61m daily cost to the Treasury of keeping dealerships closed.
The annual tax-take from VAT, VED and other taxes on new car sales to private buyers alone amounts to some £5.4bln.
However, lockdown closures will have cut this figure by almost a quarter (23%) by the end of the month, with every additional day of closure costing £20m.
Also, furloughing the retail sector’s 590,000 workers under the Job Retention Scheme is costing an estimated £41m a day.
Mike Hawes, SMMT Chief Executive, said, “Government measures to support the critical automotive industry during the crisis have provided an essential lifeline, and the sector is now ready to return to work to help the UK rebuild. Car showrooms, just like garden centres, are spacious and can accommodate social distancing easily, making them some of the UK’s safest retail premises.
“Allowing dealers to get back to business will help stimulate consumer confidence and unlock recovery of the wider industry, boosting tax revenue and reducing the burden on government spending.
“Unlike many other retail sectors, car sales act as the engine for manufacturing and reopening showrooms is an easy and relatively safe next step to help get the economy restarted. With every day of closure another day of lost income for the industry and Treasury, we see no reason for delay.”
Dealerships are to be included in the phased re-opening of “non-essential” retailers starting 1 June.