John Leech, Head of Automotive for KPMG in the UK, commenting on the Autumn Statement, said:
“The automotive sector will be pleased to hear that the Government plans to review business rates. This is a tax that is not linked to ability to pay and is much higher than equivalent taxes in other EU countries. For the automotive industry it discourages investment in the UK and it’s expensive too – currently the business rates impose a 48% tax on the increase in rateable value estimated from investment in property, plant and equipment.
“The reform of business rates will boost investment by automotive companies and therefore help to rebalance the economy, but it needs to be implemented quickly to capitalise on the favourable investment climate.
“The automotive sector will also welcome scrapping national insurance contributions on apprentices aged under 25 years which should help to boost youth employment and the development of skills in the industry.”
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Nahidur Rahman, KPMG Press Office
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.