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Ian Lucas MP, Labour's Shadow Industry Minister, responding to the 13th month of reduced automotive sales, with registrations down 6.2% in July and 3.5% in June, said:

“The Tory-led Government's VAT hike has hit like a hammer blow to the automotive industry, with new car registrations falling in each of the past 13 months and seeing a sharp decrease in the last two months.

“All the indicators – the weak growth figures, the most recent manufacturing PMI, and now the fall in new car registrations – should ring alarm bells for the Tory-led Government.

“We have great talent here in the UK and we need to ensure we remain at the forefront of the international automotive industry. We need to have a skills base that will continue to attract world class investment to Britain. The Tory-led Government should enact a temporary VAT cut now to get the economy moving again, helping get the deficit down through growth and jobs."

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