NFDA urges government to provide energy support to businesses

The National Franchised Dealers Association has written to the Chancellor of the Exchequer, Rt Hon Nadhim Zahawi MP, urging support to mitigate the impact on UK automotive businesses of spiralling energy costs. Bills for auto dealers are expected to have risen 250 per cent by October. 94 per cent of the association’s members said the energy crisis will have a significant and detrimental impact on their business.

“The unprecedented rise in energy costs over the past six months, without prompt and suitable help, will for many in the automotive retail industry prove an extremely difficult burden”, said Sue Robinson, chief executive of the NFDA. “Supporting the industry at this moment in time will give businesses the time they need to renegotiate contract prices which better reflect the increasing energy costs.

“NFDA has requested a meeting with the Chancellor to discuss how best the industry and government can work together to address this critical issue. We have also written to the Secretary State for Business, Energy and Industrial Strategy, Rt Hon Kwasi Kwarteng MP, and two Conservative leadership candidates on the matter.”

The NFDA is proposing a subsidy of 25 per cent in the value of the increase in a dealership’s electricity bill over the past six months, lasting for a year.