Why Is Transport in the UK so Expensive?
According to a report presented by Deutsche Bank, transportation in London, UK is the most expensive in the world. The report suggests that cities in the UK rank lowly because of the quality of life they offer.
High transportation costs, commuting time, public transport availability, and pollution are stated to be the prime reasons for the low quality of life in the UK. If you have ever wondered why transportation in the UK is so expensive, allow us to break it down for you.
A number of factors are involved in the high transportation costs that people in the United Kingdom have to face. Some of the factors are listed below:
Cars in the UK are not just expensive; they cost the highest in the whole of Europe. According to reports published by the Daily Mail, cars in the UK cost around 52% more than what the same vehicles cost in the rest of the European countries.
Other than the high price tag of automobiles, the maintenance of these vehicles is also very expensive because of which people tend to avoid buying cars and resort to public transport more often, which again, is very expensive.
For people who do wish to buy their own cars, bad credit scores affect them, making them ineligible for car loans in most cases.
Although there are a number of different loan companies in the UK granting long-term car loans to people, poor financial standings, low incomes, and bad credit scores affect them and their chances of getting these loans.
High Fuel Costs
One of the most fundamental reasons for high fuel costs in the UK is the heavy taxes that are imposed on petrol and its by-products.
Around two thirds of the total fuel cost is collected by the government in the form of duty and VAT, making the UK the highest-rated fuel taxed country studied in the report.
The high taxation rates cause the retailers and station owners to increase the distribution costs of fuel, enabling them to benefit from larger profit margins and making transportation even more expensive.
Expensive Rail Fares
The rail fares in the UK are also exceptionally high when compared to the fares of its neighbouring countries. This was caused by the privatization of the British Rail in 1993 after which private rail companies provided the railway services and gained operation rights.
These companies calculate and revise fares on their own terms, keeping large sums of profits for themselves. This privatization gave added liberty to the private companies, making rail transportation very expensive.
All these factors collectively play a major role in making transportation in the UK an expensive affair. If you are tired of spending your hard money on expensive daily commutes, it is time you make a good investment once and for all and buy your own car.
If you are concerned about bad credit scores affecting you, you will be relieved to know that there are still some car financing companies willing to grant you a bad credit personal loan, so start looking!