THE ECONOMIC AND ENVIRONMENTAL IMPACT OF THE HISTORIC AND CLASSIC MOTOR INDUSTRY IN THE UK

10 Figure 1 Numbers of vehicles in the UK by age 2) The UK historic car sector has a much bigger economic footprint than most people imagine. Once all related sectors are considered, the aggregate turnover of the sector is £ 18.3 billion, though this measure allows for some double counting. 3) For every £1 in turnover directly generated by firms in the sector, a further £1.2 2 of turnover is supported through the supply-chain and wider-spending impacts which are discussed in the report. 4) In total the industry supports £8. 7 billion per annum of aggregate Gross Value Added (GVA) to the UK (roughly its contribution to Gross Domestic Product). This measure takes out any double counting and any imports. 5) The sector supports the generation of £2. 9 billion per annum in tax revenues, mainly from VAT and income tax and National Insurance contributions from the sector. 6) The sector supports the employment of 113,000 employees throughout the economy. Because of their special heritage skills, these 23,783 employees directly employed in the maintenance and repair sector of the industry typically earn a premium of 70% above the average wage. In addition, the sector is being proactive with its newly started apprenticeship scheme. Already in 2019 there were 665 apprentices in the industry from a standing start and this scheme is expected to grow exponentially. 7) Based on the wage premium from the specialist skills that classic car maintenance and restoration workers possess, these skills were worth at least £335 million per annum to the UK economy in 2019. This does not take account of the value of intangible benefits, such as the enjoyment of the work, or the special value associated with the preservation of historic craft skills. 8) The jobs generated by the sector are based on conservation and craftsmanship. Craft based jobs are in the top 8% for job satisfaction. 9) Contrary to what one might expect, spending on classic cars is much more environmentally friendly than most consumers ’ expenditure. Numbers of UK vehicles - historic, classic and modern Historic vehicles (over 30 years old) FBHVC definition 1.54 million Classic vehicles (between 15/20 years old and 30 years old) based on HMRC definition 1.47 million Modern vehicles (all vehicles that are neither classic nor historic) 36.55 million