General election comment - LKQ UK & Ireland reaction

Date: Friday 05 July 2024

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Kevan Wooden, CEO at LKQ UK & Ireland, said:

“We look forward to a new government bringing a fresh policy perspective in the interest of delivering a sustainable, prosperous future for the independent aftermarket.

“Starmer’s plans to restore the 2030 phase-out date for new cars with internal combustion engines (ICE) will have the most immediate impact on the industry. Some in the aftermarket had delayed investment plans for retooling and reskilling, but it will now be imperative for garages to kickstart their transition as to not miss out on electric vehicle (EV) custom.

“Labour's plans to retain the full expensing tax incentive will help to reduce the cost of new equipment for garages. But Starmer's government could go one step further by including learning and development within full expensing too. Incentivising training will be important to help meet the 2030 deadline, with only 11% of UK mechanics currently qualified to work on EVs.

“The industry will want to learn how the EV skills gap can be plugged through Labour’s proposed body Skills England. A blend of automotive skills strategy and private training will be key to meeting the aftermarket’s future talent needs, and we’re well underway expanding the LKQ Academy to support this.

“The introduction of a standardised battery health certification scheme for used vehicles under Labour could also represent a new income opportunity for garages, incentivising them further to upskill and retool for servicing plug-in vehicles sooner rather than later. Garages and workshops will eagerly anticipate more details on the scheme.

“With a new government, we’ll continue to represent the interests of independent repairers as we help to inform and shape policy alongside our peers in the industry. This will include continued campaigning for fair, shared and secure access to the latest software and access codes – to ensure our customers can complete every job that comes in to the workshop safely and to a high standard. Doing so is key to protecting the 350,000 livelihoods the aftermarket supports, and ultimately to consumers’ ability to choose where they take their vehicles for great quality, great value, local service, maintenance and repair work.”

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