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New figures show that consumer spending on car purchases has increased three times faster than on public transport journeys.
Around £57.4bn was spent in the UK on new and used cars in 2023, up 6% from five years earlier, according to AA analysis of Office for National Statistics data.
In comparison, consumer spending on public transport – including trains, buses, flights and taxis – was £60.9 billion, which is a 2% increase on five years ago.
AA head of roads policy Jack Cousens said the figures highlighted how vital motoring is to people in the UK, as well as the country’s finances.
He said: “These latest ONS figures highlight the UK’s dependence on cars and the huge amounts of money they generate for the economy – not to mention the VAT on these expenditures and other taxes.
“Cars are not just necessary, but essential on many levels. Even if a significant amount of car use were to be shifted to public transportation, the impact on the economy and other income generation would be dramatic.
“Think how much councils would lose if a high percentage of cars stopped showing up in car parks or needing parking permits and getting fined.
“The key question is whether what consumers spend on cars would translate into revenue for public transport and cover the cost of investing in infrastructure to enable this.
“It seems that making traveling consumers pay for their own transportation and maintenance, and then charging exorbitant taxes, is good business for the public coffers.”
Driving a car also accounted for a large share of the £78.6 billion spent on what is described as personal transport operations, with spending on fuel and lubricants rising 20% since 2018 to £41.7 billion.
New car purchases fall
But despite the fact that more consumers are spending money on cars than on public transport, the number of new car purchases by private buyers has fallen for nine consecutive months, new figures show.
The Society of Motor Manufacturers and Traders (SMMT) said 67,625 new cars were registered by private consumers in June, down 15.3% from the 79,798 registered in the same month last year.
Ian Plummer, commercial director at Auto Trader, said: “With the average price of new cars rising by almost 40% in the last five years, it’s clear that cost is to blame.
“Manufacturers are responding with discounts, but they are not able to keep up, which is forcing many buyers to opt for a used alternative.
“Whoever forms the next government needs to address the affordability of electric cars and provide long-term stability for the market.”
Environmental impact
Despite the AA’s comments, the billions of pounds spent by consumers every year on cars is having a clear effect on UK roads, where overall traffic levels in 2023 were 2.2% higher than the previous year.
More cars on the roads means more air pollution, which is among the biggest environmental health risks faced by people in the UK.
Burning gasoline and diesel fuel creates harmful byproducts such as nitrogen dioxide and carbon monoxide, while vehicles emit carbon dioxide, the most common man-made greenhouse gas.
Even electric vehicles produce particles due to the friction between their tires and the road.
Researchers at University College London estimated that 48,625 adults die prematurely each year in the UK due to particle pollution.
Currently, 79% of the UK exceeds the World Health Organization (WHO) annual average guideline for safe levels of fine particulate matter.