Peter Vosper: What can the motorist expect in the autumn statement?

With the Tory conference ending, motorists may be hoping for some good news from the Autumn Statement on November 22.
The truth is probably the Government will continue to address the high level of inflation and will be hoping to see a continued fall in October and November followed by a similar move from the Bank of England on interest rates.
The Chancellor has already stated that the minimum wage will rise to a minimum of £11 per hour in April 2024, helping some two million lower paid workers but there seems little chance of a reduction in energy charges in the short term.
Motor manufacturers are continuing to move more and more towards electric car sales, with pressure on prices likely until volumes increase enough to bring prices down. The Government is being urged to cut taxes to ease the public burden and home energy support will be a priority so will not favour the motorist but there is some hope.
Manufacturers, in general, have enjoyed a profitable period with lower volumes meaning higher margins but they had expected volumes to have risen to a higher level in 2023.
The increases that have been occurring have been from sales of Motability and fleet sales, which had been restricted during Covid. The business market has also taken up the initial production of electric cars with the incentives provided. Private buyers have also been keen to update their cars but many with Personal Contract Plans have found their payments rising at a higher rate than inflation, aggravated by the rise in interest charges.
If the manufacturers wish to encourage them to renew, they will need to bring forward some attractive offers, and not just on electric cars. The fourth quarter should see this happen but the manufacturers will be looking for a postponement to the penalties for failing to meet electric sales targets, and with the Government’s recent decision to move the 2030 target back to 2035, will feel they have a strong case.
Next week, we will look at the September markets in some detail to see how this crucial period has finished. There must be some allowance for the slowness of deliveries and the shortages of particular parts but the hope will be for a rise in all segments.
The used car market has slowed down and, with stocks building to proper levels, expect special offers, reduced interest rates and other incentives to attract buyers in October and November before Christmas becomes the priority. These actions are the most likely savings for motorists until the Budget in 2024, when the position will be clearer and the Government will know what they need to do to have any chance or re-election.