Chancellor Rishi Sunak unveils his budget plans to the House of Commons, for 2021

The National Body Repair Association (NBRA), the only association for body shops in the UK, comments on Rishi Sunak’s budget plans for 2021.

Furlough extension

The Chancellor has announced that the furlough scheme will be extended until the end of September. Whilst employees will still receive 80% of their wages on the scheme, business will be asked to contribute 10% of this in July and 20% in August and September, to soften the transition as we move out of lockdown.

Chris Weeks, NBRA Director, commented: “As a whole, this is positive news for the repair industry. The NBRA welcomes the decision for the furlough scheme to come to a close in September, as this demonstrates the government’s confidence that normal business activity can return to normal before the year is out.

“Bodyshops can retain their much-needed skilled staff to repair cars, until the economy begins to recover, and repairers can get back to doing what they love”

Business rates holiday

The full business rates holiday will be extended until June, rates will be discounted by two thirds for the following nine months.

Chris Weeks said: “The Business Rates holiday has been a welcomed form of financial support offered by the Government during the pandemic. It is therefore very positive to see that this has been extended, as it will help bodyshops to reduce their overheads.”

Fuel duty frozen

Chris Weeks said “The fuel duty tax being frozen for another year is also positive news. NBRA hopes that this will continue to encourage motorists to return to the roads and should support the normalisation of claims volumes.”

Corporation tax and ‘super-deduction’

In 2023 the rate of corporation tax, paid on company profits, will increase to 25%. In addition to the announcement about the corporation tax, the Chancellor has unveiled a ‘super deduction’ tax relief aimed at supporting business investments. For the next two years, businesses will be able to claim 130% of their new “machinery cost” as a tax cut.

Chris Weeks commented: “The announcement for corporation tax to increase to 25% was duly expected, considering the significant challenges our economy has been facing. But the extension for the increase to come into effect from 2023 will hopefully help businesses to get back on their feet.”

“The ‘super-deduction’ may well be an excellent opportunity for repairers to invest in new equipment to meet the changes in technology and offset the entire cost against profits.”


Apprentice incentive payments will be doubled to £3,000.

Chris Weeks said: “NBRA understands that repairers are eager to get apprenticeship schemes going again. The incentive payments will give that extra added support to get this process moving, towards a better and brighter future for the automotive industry.”

For more information, or if you have any specific questions as to how this may effect your business, do not hesitate to contact us at