Car dealership Vertu Motors has blamed Budget cost hikes for job cuts and said it has been forced to shut showrooms on Sundays as it braces for a hit of around £10 million. The group said it had already reduced its workforce to make savings ahead of a soaring wage bill following the Chancellor’s move to hike national insurance contributions and the minimum wage. It is understood the number of jobs being axed is minimal, but that the group will reduce roles by not replacing workers when they leave.
Vertu sees around 15% to 20% of its 7,500-strong workforce leave each year due to natural staff turnover. The group, which has 198 sites across the UK, said it was also shutting most of its showrooms on Sunday for the first time as part of efforts to offset the cost impact. And it will merge its three brands under the Vertu banner. It warned it was facing around an extra £10 million in wage costs in its next financial year to the end of February 2026 from the Budget measures, while it expects to see wage inflation passed through in other areas, such as car valeting and cleaning costs.
The group becomes the latest firm to reveal job losses in the wake of the Budget tax hike. A number of large firms including Sainsbury’s have axed jobs in the first weeks of 2025, with some of the cuts at the supermarket understood to be linked to the increase in NICs. Vertu also warned that profits will be “significantly” lower than expected for the year to February 28 due to subdued consumer demand and “severe disruption” to the new car market from the Government’s specific zero emissions vehicle (ZEV) sales targets.
