Consumer Spending on Car Purchases Outpaces Public Transport Journeys, New Figures Show
Consumer spending on car purchases has risen three times faster than for public transport journeys, according to new figures released by the AA. In 2023, around £57.4bn was spent in the UK on new and used cars, representing a 6% increase from five years earlier. In comparison, consumer spending on public transport, including rail, buses, flights, and taxis, was £60.9bn, showing a 2% increase over the same period.
Jack Cousens, the AA’s head of roads policy, emphasized the importance of motoring in the UK, both for individuals and the economy. He highlighted the significant contribution that cars make to the country’s finances through VAT and other taxes generated by car purchases and maintenance.
Despite the higher spending on cars, the number of new car purchases by private buyers has been declining for nine consecutive months, according to the Society of Motor Manufacturers and Traders (SMMT). This trend is attributed to the rising cost of new cars, with average prices increasing by almost 40% over the last five years. As a result, many consumers are opting for used cars instead.
The environmental impact of the billions of pounds spent on cars each year is also a growing concern. Increased traffic levels in 2023 have led to higher air pollution, posing a significant health risk to people in the UK. The emissions from burning petrol and diesel fuel, as well as the production of greenhouse gases like carbon dioxide, contribute to poor air quality and related health issues.
Even electric vehicles, which are often seen as a more environmentally friendly option, produce particulate matter from tire-road friction. Researchers estimate that tens of thousands of adults in the UK die prematurely each year due to particulate matter pollution, with a large portion of the country exceeding safe levels set by the World Health Organization.
As consumer spending on cars continues to outpace that of public transport, it is crucial for policymakers to address the affordability of electric vehicles and provide long-term stability for the automotive market. Balancing the economic benefits of car ownership with the environmental and health impacts is essential for creating a sustainable transportation system for the future.