Cuts Challenge Autos Overhaul Under New Government

BMI warns the VAT increase announced by the new coalition Government in its Emergency Budget will slow the recovery in the UK's auto sector. While we believe the VAT rise from 17.5% to 20%, which will come into effect from January 4 2011, will increase vehicle demand towards the end of this year, we expect sales to suffer in 2011 and thereafter.

To read the full article, please choose one of the following options: