Employee Car Ownership Schemes

Lord Woodley Excerpts

Monday 8th December 2025 Lords Chamber

Asked by

[Lord Woodley]

To ask His Majesty’s Government what assessment they have made of the potential impact on the economy of changes to Employee Car Ownership Schemes announced on 21 July.

[The Minister of State, Department for Business and Trade and HM Treasury (Lord Stockwood) (Lab)]

My Lords, at the Budget 2025 the Government announced that, to allow more time for the automotive sector to prepare for and adapt to the proposed changes in treatment for employee car ownership schemes, its implementation will be delayed until 6 April 2030, with transitional arrangements until April 2032. The tax impact and information notice have been updated to reflect the impact of these changes.

[Lord Woodley (Lab)]

My Lords, I welcome the Minister to the Dispatch Box, as I am sure all colleagues do. I thank him for his positive response, having listened to the motor industry’s concerns. However, while welcome, this delay to wiping out ECOS, a 40 year-old industry leasing scheme, begs the obvious question: what assessment was made when these proposals were mooted, given that they would reduce production by 100,000 vehicles a year, cost 5,000 automotive jobs and hardly put a penny extra into the Treasury’s coffers? Would the Minister agree to meet me and industry colleagues to discuss whether these proposals should be scrapped entirely?