Consumer spending on cars has grown three times faster than spending on public transport, new figures show.
According to AA analysis of Office for National Statistics data, around £57.4bn will be spent in the UK on new and used cars in 2023, up 6% from five years earlier.
By comparison, consumer spending on public transport (including trains, buses, flights and taxis) was £60.9bn, up 2% from five years ago.
AA road policy chief Jack Cousens said the figures highlighted how vital motoring was to UK citizens as well as the country’s finances.
He said: “These latest ONS figures underline the UK’s dependence on cars and the huge amounts of money they generate for the economy, not to mention the VAT on that spending and other taxes.
“Cars are not only necessary, but essential in many ways. Even if a significant portion of car use were to be transformed into public transport adoption, the impact on the economy and on the generation of other income would be dramatic.
“Think how much money local authorities would lose if a high percentage of cars stopped using their car parks or needed parking permits and were fined.
“The key question is whether what consumers spend on cars would translate into revenue for public transport and cover the cost of the infrastructure investment needed to make it possible.
“It seems that getting traveling consumers to pay for their own transportation and maintenance, and then charging them very high taxes, is a very good deal for the public purse.”
Running a car also accounted for a large share of the £78.6bn spent on what is described as operating personal transport, with spending on fuel and lubricants up 20% since 2018 to £41.7bn.
New car purchases decline
But despite more consumers 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 private consumers registered 67,625 new cars in June, down 15.3% from 79,798 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% over the past five years, it’s clear that cost is the culprit.
“Manufacturers are responding with discounts, but they are failing to keep pace, forcing many buyers to opt for a used alternative.
“Whoever forms the next government must address the affordability of electric cars and provide long-term stability to the market.”
Environmental impact
Despite the AA’s comments, the billions of pounds consumers spend each year on cars are 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 one of the biggest environmental health risks facing UK residents.
Burning gasoline and diesel produces 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 particulate matter 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 particulate pollution.
Currently, 79% of the UK exceeds the World Health Organisation (WHO) recommended annual average levels for safe fine particulate matter.
