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Better of the Cash weblog | UK Information

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July 6, 2024
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Journalism, media, and expertise tendencies and predictions 2024


Shopper spending on automobile purchases has risen 3 times quicker than for public transport journeys, new figures present.

Round £57.4bn was spent within the UK on new and used vehicles in 2023, up 6% on 5 years earlier, in accordance with AA evaluation of Workplace for Nationwide Statistics information.

By comparability, shopper spending on public transport – together with rail, buses, flights and taxis – was £60.9bn, representing a 2% enhance on 5 years in the past.

AA head of roads coverage Jack Cousens claimed the figures spotlight how important motoring was for individuals within the UK, in addition to the nation’s funds.

He mentioned: “These newest ONS figures underline the UK’s reliance on vehicles and the massive quantities of cash they generate for the economic system – to not point out VAT on that spending, and different tax.

“Vehicles should not simply essential however important on so many ranges. Even when a big quantity of automobile use was reworked into take-up of public transport, the influence on the economic system and different earnings technology can be dramatic.

“Simply assume how a lot councils would lose if a excessive proportion of vehicles stopped turning as much as their automobile parks or needing parking permits, and getting fined.

“The important thing query is whether or not what shoppers spend on vehicles would translate into earnings for public transport and canopy the price of infrastructure funding to allow that.

“It appears that evidently getting travelling shoppers to fork out for their very own transport and its upkeep, after which tax the heck out of them, is a reasonably whole lot for the general public purse.”

Operating a automobile additionally accounted for a big chunk of the £78.6bn spent on what’s described because the operation of non-public transport, with spending on gas and lubricants up 20% since 2018 to £41.7bn.

New automobile purchases down

However regardless of the very fact extra shoppers are spending cash on vehicles than on public transport, the variety of purchases of recent vehicles by non-public consumers has declined for 9 months in a row, new figures present.

The Society of Motor Producers and Merchants (SMMT) mentioned 67,625 new vehicles have been registered by non-public shoppers in June, down 15.3% from 79,798 throughout the identical month final yr.

Ian Plummer, business director at Auto Dealer, mentioned: “With common new automobile costs rising virtually 40% over the past 5 years, it is clear value is the wrongdoer.

“Producers are responding with reductions however they’re failing to maintain tempo, which is forcing many consumers to go for a used different.

“Whoever varieties the subsequent authorities wants to handle electrical automobile affordability and supply long-term stability for the market.”

Environmental influence

Regardless of feedback from the AA, the billions of kilos spent by shoppers yearly on vehicles is having a transparent impact on UK roads – the place total site visitors ranges in 2023 have been 2.2% increased than the earlier yr.

Extra vehicles on the roads means extra air air pollution, which is among the many largest environmental well being dangers going through individuals within the UK.

Burning petrol and diesel gas creates dangerous by merchandise like nitrogen dioxide and carbon monoxide, whereas autos emit carbon dioxide, the commonest human-caused greenhouse gasoline.

Even electrical autos produce particulate matter from the friction between their tyres and the street.

Researchers from College School London estimated that 48,625 adults die prematurely every year within the UK on account of particulate matter air pollution. 

Presently, 79% of the UK exceeds the World Well being Group’s (WHO) annual imply guideline for protected nice particulate matter ranges. 

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