1.5 million cars. You could argue that’s how many DIDN’T sell in the UK in 2020 and 2021. This is comparing the average of 2.4m for the three preceding years to the 1.6m registered in both 2020 and 2021.
If we assume the cars we didn’t buy cost an average of £30,000 each, that’s £46 billion that wasn’t earned by the automotive sector.
In VAT terms the loss to HMG was over £7.5 billion for the two years.
I posted a little while back about the £8 billion fall in Fuel Duty and associated VAT in 2020/21.
I’m sure you will agree these are BIG numbers. To give it context, the new Health and Social Care Levy is expected to bring in a net amount of £12.7bn in 2022/23, which is broadly the same as the amount lost from VAT on cars not sold and Fuel Duty in 2021.