Alistair Darling will reveal the 2010 Budget on March 24 and the Society of Motor Manufacturers and Traders wants the Government to include measures to help boost consumer confidence and secure the future of the automotive industry in the UK.

In its annual pre-Budget submission the Society of Motor Manufacturers and Traders (SMMT) urged the Chancellor to implement measures to support long-term investment, employment and technological development in the UK motor industry.

Paul Everitt, SMMT chief executive, said: “The Government has recognised the importance of manufacturing and has signalled its commitment to working collaboratively with industry.

“This has been vital in minimising the impact of the recession on the motor industry. The scrappage scheme has been a lifeline for the new car market, but further measures are now necessary to build confidence and encourage new investment.”

This month sees the end of the scrappage scheme. Combined with a lack of consumer and business confidence and continued market challenges 2010 is expected to see fewer registrations (1.8m) than in 2009 (1.99m).

SMMT has recommended these measures :

Increasing the Annual Investment Allowance for businesses to £500,000 to boost spending on vans, trucks, construction equipment, buses and coaches.

• Retaining and further enhancing the first-year writing-down allowance to 60% to incentivise business and fleet investment in the van and truck markets.
• Removing or delaying the planned introduction of a first year rate of tax (VED) on new cars from April 2010.
• Removing the 3% diesel car penalty in the company car benefit-in-kind (BIK) calculation.
• Deferring the third stage of increases to DVLA first vehicle registration fees.
• Removing the £80,000 cap on company cars that adversely impacts UK-built premium car makers.

• Reconsidering the removal of the 20 pence per litre incentive for biofuels due to end in April 2010 to sustain and develop the technology-neutral approach to ultra-low carbon vehicles.
• Greater flexibility in the Automotive Assistance Programme and more effective delivery of wider support programmes to ease access to finance and credit.