IMI urges more government backing for automotive workforce

The Institute of the Motor Industry (IMI) has urged the UK Government to increase investment in automotive workforce skills ahead of Chancellor John Healey’s Autumn Budget on 28 October 2026. The body warns that skills shortages, an ageing vehicle parc and rapid technology change could curb dealer productivity and slow new‑tech adoption.

Key takeaways

• IMI requests extra budget funding for automotive skills development and training.
• The body wants Growth & Skills Levy to cover modular and short‑course programmes.
• Targeted incentives are proposed for emerging vehicle technologies training.
• IMI calls for a dedicated Automotive Workforce Investment Fund.
• Unused levy money should be redirected to sectors with acute skills shortages.

IMI’s budget requests

IMI submitted a list of "Budget Asks" to be considered when the chancellor delivers the Autumn Budget on 28 October 2026. The requests focus on expanding funding streams that can support upskilling, retention and adoption of new vehicle technologies across the sector.

The professional body argues that without these measures, the automotive trade could face reduced productivity and slower integration of high‑voltage, automated and alternative‑fuel vehicles.

Skills shortages and technology pressure

IMI highlights a growing mismatch between the pace of technological change and the capacity of the current workforce. An ageing vehicle parc further compounds the need for trained technicians capable of handling advanced systems.

The shortage of skilled workers threatens to limit dealer profitability and could increase risks for both businesses and consumers if complex repairs are performed by inadequately trained staff.

Proposed changes to the Growth & Skills Levy

IMI seeks greater flexibility in how Growth & Skills Levy funds are spent, allowing finance for modular courses and short‑duration training that can quickly address skill gaps.

Additional incentives are suggested for programmes that teach high‑voltage, automated, connected and alternative‑fuel vehicle technologies, ensuring the workforce keeps pace with emerging trends.

Automotive Workforce Investment Fund

The body proposes a dedicated fund to support workforce retention, upskilling, SME development and accident‑repair training. The fund would also aid career progression and help the sector adopt new technologies more readily.

Redirecting unused levy resources into this fund would target sectors experiencing acute skill shortages, creating a more resilient automotive labour market.

What this means for dealers

If the Budget adopts IMI’s proposals, dealers could access new funding streams to train staff on electric, hybrid and autonomous vehicle systems, reducing reliance on external contractors.

Greater levy flexibility may enable quicker, modular training solutions, helping dealerships maintain service standards while managing costs and supporting employee retention.

Frequently asked questions

What specific training areas does IMI want the government to fund?

IMI wants funding for modular and short‑course programmes covering high‑voltage systems, automated driving technology, connected vehicle communication and alternative‑fuel (including electric and hydrogen) technologies.

How could the Automotive Workforce Investment Fund affect dealer operations?

The fund would provide grants that dealers can use to upskill technicians, retain skilled staff, develop SME capabilities and deliver specialised training for accident‑repair and emerging vehicle technologies.

When will dealers see any impact from these proposals?

Impact depends on the outcomes of the Autumn Budget on 28 October 2026. If accepted, funding mechanisms are likely to be rolled out during the following fiscal year, giving dealers time to plan training programmes.