The IMI Urges John Healey To Prioritise Investment In Automotive Workforce Supply And Skills In Autumn Budget

(Copyright IMI, reproduced with kind permission)

The IMI (Institute of the Motor Industry) has submitted its 'asks' for the Budget on 28th October 2026, with a clear plea for the Chancellor to recognise the fundamental role of people who work in the automotive sector in road safety. As Nick Connor, CEO of the IMI explained, the sector is facing a perfect storm of workforce shortages, an ageing vehicle parc and rapid technological transformation which is undermining road user confidence.

"There is a growing mismatch between policy ambition, technological change and workforce capacity and without targeted investment, these pressures will constrain productivity, slow technology adoption, and increase risks for employers and consumers alike. This Autumn's Budget provides a real opportunity to address these challenges through targeted investment in workforce supply, skills development and safety-critical competence.

"Doing so will support economic growth, strengthen the UK's industrial strategy ambitions and ensure the automotive workforce remains capable of supporting the transition to the technologies of the future."

The key asks from the IMI include:

Reform Skills Funding and the Growth & Skills Levy

The IMI asks HM Treasury to:

1. Expand employer flexibility over Growth & Skills Levy expenditure.
2. Permit levy funding to support modular and short-course training.
3. Introduce targeted incentives for upskilling in emerging vehicle technologies.
4. Ensure unspent levy funds are redirected towards sectors experience acute skills shortages.

Create an Automotive Workforce Investment Fund

The IMI asks HM Treasury to establish a dedicated automotive workforce fund supporting:

1. Retaining and upskilling.
2. SME workforce development.
3. Technology adoption training.
4. Accident repair workforce development.
5. Career progression and retention initiatives.

Introduce Skills Investment Through IMI TechSafe

The IMI asks HM Treasury to:

1. Support employer investment in high voltage, connected, automated, and alternative fuel technology competence through targeted grants or matched funding.
2. Recognise established competence frameworks such as IMI TechSafe within publicly funded skills programmes.
3. Support workforce readiness through investment in training capacity.

Support Workforce Readiness for Net Zero

HM Treasury should ensure workforce readiness becomes an explicit component of net zero transport policy and future ZEV implementation.

"As vehicle technologies become increasingly complex, this should be accompanied by proportionate, risk-based assurance in areas where competence has a direct bearing on safety," added Nick Connor. "However, the IMI supports the Chancellor's ambition to reduce unnecessary regulatory and administrative burdens on business. Rather than creating new regulatory bureaucracy, government should make greater use of established frameworks to demonstrate competence in high-voltage, automated, connected, and alternative fuel vehicle technologies."