Consumer Spending on Cars Outpaces Public Transport, New Figures Show

Consumer spending on car purchases has risen three times faster than for public transport journeys, new figures show. According to AA analysis of Office for National Statistics data, around £57.4bn was spent in the UK on new and used cars in 2023, up 6% from five years earlier. In comparison, consumer spending on public transport, including rail, buses, flights, and taxis, was £60.9bn, representing a 2% increase over the same period.

Jack Cousens, the AA’s head of roads policy, emphasized the importance of motoring in the UK, stating that cars are not just necessary but essential on many levels. He highlighted the significant economic impact of car spending, including VAT revenue and other taxes generated. Cousens also raised the question of whether consumer spending on cars could potentially translate into income for public transport and cover the costs of necessary infrastructure investments.

Despite the increase in consumer 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). Ian Plummer, commercial director at Auto Trader, attributed this trend to rising new car prices, which have increased by almost 40% over the last five years. Plummer 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 are also having a significant environmental impact. The increase in traffic levels in 2023 has led to higher levels of air pollution, with harmful emissions from petrol and diesel vehicles contributing to health risks such as nitrogen dioxide and carbon monoxide exposure. Even electric vehicles produce particulate matter from tire-road friction.

Researchers from University College London estimated that 48,625 adults die prematurely each year in the UK due to particulate matter pollution. Additionally, 79% of the UK exceeds the World Health Organization’s annual mean guideline for safe fine particulate matter levels.

As consumer spending on cars continues to outpace public transport, the implications for the economy, environment, and public health remain significant. Addressing these challenges will require a multi-faceted approach that considers the economic, environmental, and social impacts of transportation choices.