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 country’s economy. He highlighted the significant contribution that cars make to the economy through VAT and other taxes generated from car purchases and maintenance.
Despite the higher spending on cars compared to public transport, 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.
Ian Plummer, commercial director at Auto Trader, pointed out the affordability issue in the new car market and called for government intervention to address electric car affordability and provide stability for the market.
The billions of pounds spent by consumers on cars each year also have environmental consequences, particularly in terms of air pollution. The increase in traffic levels in 2023 has led to higher levels of harmful pollutants like nitrogen dioxide and carbon monoxide, as well as greenhouse gas emissions from burning petrol and diesel fuel.
Even electric vehicles, which are often seen as a more environmentally friendly option, produce particulate matter from tire-road friction. Researchers estimate that thousands of adults in the UK die prematurely each year due to particulate matter pollution, highlighting the urgent need to address air quality issues.
As the debate continues on consumer spending habits and their impact on the environment and economy, it is clear that a balanced approach is needed to ensure sustainable transportation options that benefit both individuals and the planet. The government, manufacturers, and consumers all have a role to play in shaping the future of transportation in the UK.