NEWS: BUDGET PROS AND CONS FOR BIKES

BUDGET PROS AND CONS FOR BIKES

George Osborne

The jury’s definitely divided on whether UK Chancellor George Osborne has done much for motorcycling in general and the bike trade in particular with his 8 July Budget announcements.

Osborne’s only specific action relating to powered two-wheelers was to launch a consultation on extending the deadline for first MoT tests from three to four years, which he claimed would collectively save car drivers and bike riders more than £100m a year.

While it may help some dealers trade on a growing volume of returned three-year-old machines financed through PCP from new with less hassle and expense, others with a steady flow of MoT testing income are going to be out of pocket.

And then there’s the safety issue, perhaps more pertinent to cars than bikes. Under the current regime, about 20 per cent of three-year-old cars fail their first MoT, frequently on knackered tyres. Both the Retail Motor Industry Federation and campaigning group TyreSafe have kicked off about this risk.

Responding to Osborne, TyreSafe chairman Stuart Jackson said: “At present the evidence strongly indicates any extension of the interval between MoT tests or the deadline for the first will result in more defective and dangerous tyres and vehicles on our roads. TyreSafe’s tread depth survey has already indicated nearly ten million illegal tyres will be on Britain’s roads in 2015. We need that number to drop, not rise, if we are to reduce the number of tyre-related incidents.”

Countering TyreSafe’s view is the argument that much longer manufacturers’ warranties on new bikes and cars ensure they are regularly dealer-serviced, thereby tackling age-related defects. And, unless it does a pathetically low annual mileage with the throttle shut, a new motorcycle’s tyres aren’t going to last more than a couple of years anyway.

Beyond that, the only other thing in the Budget affecting our business sector is reform of Vehicle Excise Tax, returning it towards the original concept of “Road Fund Tax” with £6bn of the revenue ring-fenced for road repairs and improvements. A fine concept, sure. But fewer potholes will also mean a reduction in the repair revenue stream for dealers too. 

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