“The main headline in terms of motoring is that, contrary to many forecasts, duty on fuel will be frozen again. This is clearly good news for anyone who drives a vehicle of any kind, as are the new road infrastructure projects that have been announced and the reductions in tolls for the Severn Crossing,” said Rupert Pontin, Head of Valuations at Glass’.
“The bigger picture is that the economy isn’t doing quite as well as the Chancellor previously forecast and there is going to be some budgetary belt tightening. Our view is that while risk factors have undoubtedly increased, the economic outlook remains relatively optimistic if susceptible to potential shocks such as the outcome of the EU referendum and wider global economic trends. However, there is nothing here that will cause us to change our view that 2016 will be a strong year for the motor industry.
“It is also worth mentioning that the backdated tax cuts for the UK’s oil and gas industries could be good news for dealers in Scotland, some of whom have been coming under pressure on a localised basis.”
