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, not only for individuals but also for the country’s economy. He highlighted the significant contribution that cars make to the economy through VAT on spending and other taxes. 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).

The rising cost of new cars, with average prices increasing by almost 40% over the last five years, has led many consumers to opt for used cars instead. Ian Plummer, commercial director at Auto Trader, called for government intervention to address the affordability of electric cars and provide stability for the market.

However, the billions of pounds spent on cars each year are also having a significant impact on the environment. The increase in traffic levels in 2023 has led to higher levels of air pollution, posing a serious health risk to people in the UK. Burning petrol and diesel fuel produces harmful byproducts like nitrogen dioxide and carbon monoxide, while vehicles emit carbon dioxide, a major greenhouse gas.

Even electric vehicles, touted as a cleaner alternative, produce particulate matter from tire-road friction. Researchers estimate that tens of thousands of adults die prematurely each year in the UK 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 essential for policymakers to address the environmental impact of increased car usage and promote sustainable transportation options. Balancing the economic benefits of car ownership with the need to reduce emissions and improve air quality is crucial for the health and well-being of both individuals and the planet.