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BQ 3A News > Blog > UK > How the United Kingdom’s dependency on vehicles slows down the economic system
UK

How the United Kingdom’s dependency on vehicles slows down the economic system

December 4, 2025
How the United Kingdom’s dependency on vehicles slows down the economic system
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The United Kingdom govt makes some huge cash from vehicles. It taxes automobile possession, it taxes the gasoline, and it’s about to fee drivers of electrical cars via the gap they shuttle.

However Britons’ reliance on their 34 million vehicles additionally comes at nice expense to the economic system. Heavy visitors and congestion prices £7.5 billion a 12 months in wasted time. An estimated £17 billion is had to repair the wiped out street community.

Within the final 30 years, as the United Kingdom inhabitants has grown via 19%, the collection of vehicles has exploded via 56%. Outdoor of London, 81% of British families personal no less than one automobile.

Becoming all of those cars right into a rather small nation implies that riding has transparent precedence over different types of delivery. In Germany, 90% of folks dwelling in massive towns have get right of entry to to a tramway or underground teach device. In France, it’s 80%.

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In the United Kingdom, the determine is lower than 20%, a equivalent stage to the United States.

However the United States has huge quantities of house, the place emblem new roads are often constructed to ease congestion. And so the United Kingdom has to care for a inhabitants density similar to the Netherlands (no less than for England) and the city delivery possible choices of Texas.

This loss of respectable public delivery is pricey to maintain for all types of causes – just like the councils splashing out £2.3 billion a 12 months transporting 470,000 youngsters to university, most commonly in taxis. Or the price of subsidising 800,000 motability cars, which accounted for one in each 5 new vehicles offered in 2024.

Whilst the federal government must completely strengthen the shuttle wishes of folks with disabilities and assist youngsters get to university, in a abnormal case of state-provided individualism, the United Kingdom has grow to be a rustic the place handiest vehicles can ship those necessary public services and products.

Designated drivers

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But city design is in the long run a call. Whilst the United Kingdom has a device which permits for 560 vehicles in line with 1,000 folks, different puts have taken a distinct path.

In Singapore, there are 146 vehicles in line with 1,000 folks. This took place after the federal government carried out a quota device to unlock a restricted collection of (pricey) car-ownership licenses to restrict congestion and finance public delivery.

A 10-year “certificate of entitlement” to possess a automobile in Singapore now prices greater than US$100,000 (£76,000) on most sensible of an extra congestion tax.

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Public delivery in Singapore.
Tupungato/Shutterstock

The end result? Singapore’s public delivery is reasonable, rapid, dependable and environment friendly.

Folks with out vehicles are positive, since the collection of total vehicles is so small that buses and taxis don’t get caught in visitors. Folks with vehicles subsidise the buses and trains, whilst playing clean visitors.

The Netherlands used a distinct technique. Within the Nineteen Seventies, Dutch streets had been ruled via vehicles and had grow to be bad for pedestrians and cyclists. Protests ended in a reorganisation of towns to grow to be some distance much less automobile pleasant.

My analysis with a fellow economist demonstrated that when you lower the distance given to vehicles, they cross slower, public transit is going quicker, and strolling and biking grow to be more secure.

Then, as extra folks flip to public delivery, the upper uptake makes it a quicker and extra dependable type of transit. It will get to some extent the place individuals who would by no means have taken public delivery finally end up the use of it and attending to their vacation spot a lot more temporarily than when the automobile used to be dominant.

So for the United Kingdom to be extra like Singapore, the federal government must make motorists pay a lot more for his or her automobile use. To be extra just like the Netherlands, it will have to remove their house.

The United Kingdom, and particularly England, which invented the railway and was once filled with electrical tramways, has the inhabitants density to make a dramatic transfer clear of vehicles in truth paintings. In truth, it’s exhausting to consider a rustic higher fitted to public delivery, or the place it’s extra wanted. It simply hasn’t been constructed.

Or no less than, it has no longer been constructed outdoor of London, the one position in the United Kingdom the place maximum families don’t personal a automobile.

So London is wealthy, neatly attached and folks don’t want vehicles. In other places, folks park on pavements in derelict top streets and power to supermarkets and puts of labor.

With stretched public price range, doing not anything about this situation is a dangerous choice. The United Kingdom has been described via the Native Executive Affiliation as a “country in a jam”, the place productiveness is held again via automobile visitors, with out a hope for development. Misplaced time on roads is about to extend via 27% within the coming a long time.

Shifting to a scenario the place vehicles aren’t regarded as the quickest and maximum handy mode of transportation will take ambition and creativeness. However the choice is an excessively pricey dependency, which clogs up the United Kingdom economic system.

TAGGED:carsDependencyeconomyslowsUKs
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