Workshop woes: Rising costs to pose biggest challenge for 9 in 10 repairers in 2026, Motor Ombudsman study finds
- Latest annual Motor Ombudsman poll shows independent garages and franchise dealer workshops are set to encounter a myriad of challenges in 2026, with rising operational costs, taxes and bills at the forefront of these
- Around seven in ten respondents are forecasting fewer customers will be able to afford routine maintenance this year, and put off essential repairs in a bid to save money
- The research finds that 45% of vehicle repairers expect the recruitment of qualified and experienced technicians to remain difficult in the coming months, adding to business strains
The UK’s service and repair sector is set to face a convergence of challenges this year, according to The Motor Ombudsman’s latest annual survey of independent garages and franchise dealer workshops.
The Ombudsman study, which provides a yearly ‘gauge of business sentiment’, has revealed that rising operational costs, taxes and bills are set to pose the biggest obstacle for over nine in ten (92%) vehicle repairers during 2026 – a slight two-percentage point increase versus the figure for the same study conducted ahead of 2025. Coupled with the recent rise in National Insurance employer contributions, vehicle repairers are set to be impacted by the arrival of added expense this year, such as higher minimum wages, a revaluation of business rates, and greater standing charges for energy use.
The research equally showed nearly seven in ten businesses forecasting that fewer consumers will be both unable to afford routine maintenance, such as servicing (69%), and put off vital work to their cars in the coming months in a bid to save money (68%), as households themselves grapple with bills that have once again increased with the start of the new year.
This potential drop in footfall may call for businesses to look at diversifying income streams to future-proof revenue in 2026 and drive further efficiencies in the way that they work, such as through using Artificial Intelligence (AI). Similarly, making investments in new technology, for example, in relation to the maintenance of Advanced Driving Assistance Systems (ADAS) and electric vehicles (EVs), could also serve as an important point of differentiation from competitors.
Furthermore, just over two-thirds of businesses questioned (68%) stated that they will face rising parts prices this year to fix vehicles. Although the outlook is positive, in that inflation is set to ease throughout 2026 according to forecasts [1], around half of respondents (55%) nevertheless stated that not passing on higher costs to consumers when handing over a bill, posed an added obstacle for their business, when it comes to both retaining existing loyal customers and attracting new ones.
As the pool of available qualified and experienced vehicle technicians for hire continues to make headlines, with thousands of vacancies yet to be filled [2], the persisting shortage of such a vital resource in the automotive sector is reflected in the results of The Motor Ombudsman poll. This is namely that nearly five in ten of the garages and workshops questioned (45%) said that recruitment would remain difficult through 2026, whilst the top staff-specific challenge emerged as being able to raise salaries to account for the heightened cost of living to help retain staff – all at a time when the bottom line may be compromised.
With finances often on a knife-edge for many motorists, as spend is prioritised according to where it is needed most, 38% of the businesses polled expect to see consumers abandoning their car on site, if the cost of repairs becomes too prohibitive. This is up from 28% – the figure forecast by businesses for 2025, reinforcing the growing pressures on household budgets.
Despite a trading environment that will bring a myriad of obstacles for repairers during 2026, there are nevertheless some encouraging takeaways from the research. For example, 29% of respondents explained that they intend to upgrade their premises to create an improved service and repair experience for customers, whilst about a fifth (21%) plan to invest in EV-specific learning initiatives to upskill their workforce, and attend training courses and webinars to further drive-up operational standards.
Bill Fennell, Chief Ombudsman and Managing Director of The Motor Ombudsman, said: “As we start the new year, it is clear from the findings of our latest poll that garages and workshops across the UK are facing an unprecedented convergence of challenges, with rising costs at the very forefront of these.
“Navigating this complex landscape, and a challenging economic backdrop to match, will require businesses to be adaptable, innovate and stand out from the crowd in what is a very competitive sector. This is where The Motor Ombudsman and its Codes of Practice play a key role in championing the pursuit of excellence and the unrelenting high standards of work and service delivered to motorists by repairers in our ever-expanding accredited network across the country.”
“Navigating this complex landscape, and a challenging economic backdrop to match, will require businesses to be adaptable, innovate and stand out from the crowd in what is a very competitive sector.”
Bill Fennell
Chief Ombudsman and Managing DirectorTo view the businesses that are accredited to The Motor Ombudsman’s Service and Repair Code, visit www.TheMotorOmbudsman.org/Business-Finder.
ENDS
[1] Source: OECD (https://www.reuters.com/world/uk/uk-set-faster-growth-2026-slower-inflation-oecd-forecasts-2025-12-02)
[2] The Institute of the Motor Industry (IMI)
About the survey data
The Motor Ombudsman survey saw 85 service and repair businesses respond online between 03rd and 21st November 2025. Read the full Motor Ombudsman Service and Repair 2025 review and 2026 outlook report at:
www.TheMotorOmbudsman.org/useful-information/industry-insights
An infographic showing the main challenges set to be faced by independent garages and franchise dealer workshops in 2026 can be seen below.
