Consumer spending on cars in the UK surpasses public transport, highlighting importance to economy

From Sky News.: 2024-07-05 04:27:40

Consumer spending on car purchases has outpaced public transport spending, reaching £57.4bn in the UK in 2023, up 6% from five years ago. Conversely, spending on public transport was £60.9bn, a 2% increase. AA highlights cars’ importance to the UK economy, with a significant impact on finances, tax revenue, and infrastructure.

Despite higher car spending, new car purchases by private buyers have declined for nine consecutive months. In June, only 67,625 new cars were registered, a 15.3% decrease from the previous year. Rising car prices are pushing buyers towards used cars, urging manufacturers to address affordability and market stability, especially for electric cars.

Consumer spending on cars contributes to heavier traffic levels, causing increased air pollution in the UK. Harmful emissions from petrol and diesel vehicles, including nitrogen dioxide and carbon monoxide, pose significant health risks. Even electric vehicles produce particulate matter. Studies estimate that over 48,000 adults die prematurely each year due to particulate matter pollution, with 79% of the UK exceeding safe levels recommended by the WHO.



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