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</o:shapelayout></xml><![endif]--></head><body lang=EN-GB link="#467886" vlink="#96607D" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Friends,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I’m sparing a thought for those of you who may still be working on your cars and are looking for parts you may have to source out of the UK for whatever reason.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>For those of you who follow developments outside of the US and Canada, some may be aware that in July of this year we had a change of government from Conservative to Centre-Left Socialist. Whenever we have a socialist administration in the UK since WW2, retail prices and indirect taxation usually go through the roof and, true to form, this has happened again following a revised budget announced in parliament less than two weeks ago.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>In order to plug an alleged ‘black hole’ of GBP25billion to be recovered in the next year, our Chancellor has stated that:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><ol style='margin-top:0cm' start=1 type=1><li class=MsoListParagraph style='margin-left:0cm;mso-list:l0 level1 lfo1'>The National Living wage will be increased by about 15%, and<o:p></o:p></li><li class=MsoListParagraph style='margin-left:0cm;mso-list:l0 level1 lfo1'>Employ<b><u>er</u></b> contributions for National insurance (an employment tax for state pensions and our state health costs) will increase at the top end from 13.8% to 15%, while the threshold for payment of this tax will go backwards from GBP9,100 per employee down to GBP5,000. This is going to have a massive impact on job security for lower paid people and is almost certainly going to see a large number of people being let go from their current jobs and find themselves once more on the jobs market.<o:p></o:p></li></ol><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Collectively, these two major changes are going to have a major impact on selling prices across the board – not only for sales made to UK customers, but it will seriously impact on exports too. Consequently, it’s highly likely that UK parts suppliers will have to radically adjust their prices UPWARDS from present levels. If that was not enough, no-one on this side of the pond has the remotest idea of what these changes will have on the Dollar/Pound exchange rate. The final ‘whammy’ is that President Elect Trump has declared to European media on several occasions that in order to protect US business interests, actions will be taken once he is in the White House to levy a 20% import duty on all imports coming into the US from non-American territories. So, if that does actually happen, the items you may be presently or thinking about buying from the UK are going to cost you rather more than previously and especially if the European postal conglomerate also decide to hike the costs for international deliveries. These usually also occur in the first three months after every New Year as well!<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I said in the subject line that this message is strictly <b><u>non-political</u></b> but I thought that all of you who may be planning to buy bits for your Austin Healey / Jaguar / MG / Sunbeam / Triumph or whatever, out of the UK, may want to bring your purchase forwards before the White House changes occupants? There’s little that can be done on points 1 and 2 above as it’s already in force but as much of my earlier career was spent in trying to sell parts to US importers in the past – and often banging my head on a brick wall with frustration, I can see that issue raising its ugly head yet again.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Ah well, what goes around usually comes around at later dates in a variety of guises. Be assured, no-one has told me prices are going to increase but the changes we’re facing here on a number of fronts are going to mean that in the near future, many things are likely to be a lot different – and by no means an improvement on what went before.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Good luck<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Jonmac<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>