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

18 Non-economic impacts The analysis looks at three aspects of the impact of historic vehicles that are not directly fully measured as part of the economic impact. First, it looks at skills transfer. There is a range of skills and knowledge spillovers. The classic car industry is a major repository of craft heritage and conservation skills, often passed on through the generations, which will die off if not sustained. These include mechanical skills, bodywork skills, metalworking skills, many complex engineering skills, woodworking, leather treating and repair and a range of other skills necessary for classic car repair, maintenance and restoration. In addition, other specialist skills are emerging including electronic retrofitting and likely future skills to enable classic vehicles to be made even more environmentally friendly. Many of the skills associated with classic cars are craft skills which can benefit those who might be less qualified for other parts of the modern digital and tech economy. As a result, sustaining such skills improves diversity and provides increased opportunities within the economy. These skills also add to conservation within the economy. We evaluate the benefits of the skills created by looking at the additional salaries that are paid to the specialist skilled employees involved in the sector. Second, we look at the environmental impact of spending on historic vehicles. We use augmented input-output analysis to evaluate the entire impact of spending on historic vehicles throughout the value chain to measure the emissions impact. We then compare this will the impact of typical consumer spending of an equal amount. It is often thought that classic cars have a negative environmental impact because of their use of fossil fuels. But the average mileage is very low and hence their fuel usage is low. In fact, our analysis suggests spending money on classic cars is a pro-environmental use of money compared with the most likely alternative uses of the same money. Much of the money spent on classic cars is on their repair, maintenance and restoration. Compared with the inputs for other forms of expenditure, the ratio of labour to materials is very high. Moreover, much of the materials input is recycled and reused. The sector is based on conservation. Other forms of expenditure associated with classic cars are also relatively environmentally friendly even after taking account of fuel usage. Cebr has spent many years making environmental assessments of economic activity and for this project we compare the environmental impact of spending on classic car activity (including fuel usage) in various ways using input- output modelling to ensure the environmental impact of the whole supply chain is included. Third, we look at the contribution to conservation and the heritage. The UK built heritage is worth £30 billion a year a ccording to Cebr’s research for Historic England. We compare the impact of classic vehicles with other aspects of the heritage, The UK was the first country to industrialise and one of the first to develop a major motor industry. The UK’s motoring heritage is rightly celebrated as a highlight of our industrial history. As motoring moves towards a new era with vehicles using green power sources and eventually automated vehicles, the traditional classic cars become an important part of the knowledge about our past. Moreover, knowledge about cars and how they work helps the more general understanding of other subjects like maths and science. We use the work Cebr has already carried out for Historic England to scale the contribution of classic cars as part of the total economic contribution to the Heritage in the UK.