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By 2030, sales of new petrol, diesel and hybrid cars will be banned in the United Kingdom. This had slated to happen by 2040, but the date has since been brought forward by five years as part of what Prime Minister Boris Johnson calls a "green industrial revolution" with the aim of tackling climate change and boosting jobs in other industries such as nuclear energy.

Some sections of the media have called the move a “petrol and diesel ban”, creating an impression that the internal combustion engine could be outlawed in years to come.

For classic car enthusiasts, this has caused some understandable concern, with fears that they could find themselves punished through higher taxes, fuel prices and classic car insurance premiums.

In this article, we set the record straight on what the new law will mean for classic car owners and help you keep up to date with the government’s long-term plans. But, first, it’s important to put it all into context by looking at the environmental impact of classic cars in the UK.

 

Classic cars only producing negligible CO2 emissions

Taken out of context, it is easy to assume that classic cars, with their inefficient engines (by modern standards), are heavy contributors to greenhouse gas emissions. It’s no secret that modern combustion engines are much more environmentally friendly than their older counterparts.

Modern engines can squeeze out as much energy as possible from fuel. Direct-injection technology, for example, doesn’t pre-mix the fuel and air before reaching the cylinder, like older engines. Instead, fuel is directly injected into the cylinders, which provides a significant improvement in fuel efficiency.

The development of turbochargers has also helped to drive down the CO2 emitted from more modern cars, while variable valve timing and cylinder deactivation further improve efficiency by only allowing the engine to use as much fuel as it actually needs.

However, while older engines can’t compete with modern engines on emissions, the average classic car produces only 563kg of CO2 emissions a year, according to research by the Centre for Economics and Business Research (CEBR). 

That is around half the emissions from using a computer or a smartphone or taking a week’s holiday in the Mediterranean, as per the report commissioned by HERO-ERA. Or to put it into a direct comparison with newer cars, it is a sixth of the impact of using a modern petrol or diesel car regularly.

The relatively low emissions are down to the fact that classic cars are only driven an average of 1,200 miles a year.

As every classic car owner knows, most historic vehicles aren’t up to everyday use. So, they are used more sparingly – sometimes even tucked away in a garage or lock-up for large parts of the year for reasons of preservation.

As the report states, if a person was to redirect their spending on going to the pub or eating restaurant meals to the hobby of owning a classic car, they would halve their environmental emissions. If they were to redirect their spending on short-haul holidays in the same way, they would cut their emissions by as much as 90%.

It’s not only low levels of usage that the classic car sector shows up well when it comes to greenhouse gas emissions. It’s also an industry that relies heavily on existing materials, reusing and recycling them rather than making brand new.

Therefore, the report concludes: “If classic vehicles did not exist and their otherwise owners spent their money in a normal way, it would lead to a level of emissions in these key sectors more than double those from the money spent on classic and historic vehicles.”

In other words, the money would be spent elsewhere on something that would produce greater emissions.

 

Classic car sector a big contributor to the UK economy

It would be wrong to suggest, however, that the classic car industry is just plodding along ‘minding its own business’. Far from it, in fact: it is contributing in a big way to the UK economy, as the HERO-ERA-commissioned report is keen to point out.

Annual turnover in the industry is an impressive £18.3 billion, with some 113,000 people employed within the sector. To put that into context, the sector is twice the size of the Scotch Whiskey industry and similar to the arts and ports industries.

Quoted in The Evening Standard, Tony Jardine of HERO-ERA said it’s important to show the world that the classic car industry is “not just some niche industry”, creating plenty of economic activity, jobs and apprenticeships.

Doug McWilliams, CEBR chief, added: “The average driver spends £8,000 a year on their classic cars, £4,500 of which goes to a garage. You may say we’re mad to do that, but it creates an awful lot of jobs and money going into the economy.”

Jobs in classic car garages tend to attract skilled workers on higher wages, compared to other comparable sectors, with job satisfaction in the top 8% of UK occupations, the report showed.

However, there are fears that apprentices would be put off from plying their trade in the industry if the government did not protect it from the wider pressure on modern petrol and diesel cars.

Jardine said that the government’s announcement about its plan for petrol and diesel cars from 2030 prompted several calls from concerned parents of apprentices querying whether or not the classic car industry was under threat.

The classic car industry also has a good track record in hiring former offenders, the report highlighted, for whom reoffending rates were far lower than other trades.

As well as the combined expenditure of 700,000 historic and classic vehicle owners, a host of associated industries also do their bit for the economy. Here’s what some of those associated industries contribute:

• Historic racing: £371million/year
• Owner clubs: £111 million
• Historic rallying: £253 million
• Vehicle museums: £62 million

In its conclusion, the report said the industry will have to adapt to the changing times going forward. It acknowledged that advances in technology could make it difficult to use internal combustion engines, at least in crowded cities.

“It is important that the industry’s leaders work with regulators to ensure that the current enthusiasm is not burnt out by fear that the use of these vehicles will be banned or so circumscribed by regulations that potential owners think of them as unusable,” the report stressed.

 

What are the government’s plans for petrol and diesel cars?

The government has said that there will be no new petrol, diesel or hybrid cars made in the UK from 2030. The ban will not include the sale of motorbikes or second-hand vehicles, and there is no proposed date to ban petrol and diesel-fuelled vehicles altogether.

The plans are pivotal to achieving the UK government’s target for the nation to be emitting virtually zero carbon by 2050, as part of a drive to tackle climate change.

Drivers are to be encouraged to ‘go green’ and buy electric cars. The government has pledged to invest more than £2.8 billion in electric vehicles; installing new charging points and creating long-lasting batteries in UK giga-factories.

As part of attempts to make drivers go green ahead of time, diesel car owners are being hit with several punitive costs in the form of higher road tax, fuel tax and congestion charge.

To help with the transition to electric vehicles, many car manufacturers now offer their own scrappage schemes for diesel cars, which provide drivers with the opportunity to trade in less eco-friendly vehicles in return for significant discounts on newer, ‘greener’ models.

It’s been suggested that these schemes could soon be extended to petrol car owners, too.

When will diesel and petrol cars be banned?

The ban on sales of new models is due to commence from 2030, but there are no plans for a complete ban on all diesel and petrol cars as things stand.

The government had initially intended to bring in the ban on new models during 2040. However, this was brought forward due to fears that the later date would leave too many petrol and diesel cars on the roads in 2050, when they hope to have hit their zero-carbon emissions target.

The proposed ban will not affect the classic car market – people will still be able to buy and sell classics as they always have done. However, it’s clear that the government is working towards having as few petrol and diesel cars on UK roads as possible.

Although there might be a few more obstacles standing in the way of classic car owners – for example, petrol and diesel might be harder to come by with electric car charging points and decreased taking over fuel stations – the industry and the community will still be going strong.

Between now and 2030, you can guarantee that key bodies within the industry will make strong claims for insulating classic car owners from new legislation.

We are already seeing that in reports like the one highlighted in this article, where the industry’s sizable economical contribution – coupled with its negligible environmental impact – shows just how important it is.

Some people have suggested that the ban could even be good news for cars that hold value in their rarity – becoming even more sought-after as collector’s items, pushing up their value further.

 

Could classic car owners convert their vehicles to electric?

AutoExpress reports that there has been a surge of owners wanting to convert their classics into electric vehicles. By doing this, they get the best of both worlds in a way – coupling those unmistakable classic looks and low environmental impact.

Electric classics have even proven a hit with the royals, too. Prince Harry drove a newly electrified Jaguar – an E Type Zero – on his wedding day to help promote the environmental benefits these electric cars bring.

Cost is obviously a factor when thinking of converting your classic to electric. It depends on the size of the project, but costs could run into the hundreds of thousands so it’s best to do your research before embarking on a major overhaul such as this.

There are lots of companies springing up around the UK offering to electrify your classic. Here are just a handful…

Lunaz - https://lunaz.design/

Electric classic cars - https://www.electricclassiccars.co.uk/

Retro Electric - https://retro-electric.uk/

eDub Conversions - https://edubconversions.co.uk/

Swindon Powertrain - https://swindonpowertrain.com/

While your greatest saving is likely to be on fuel, having a modern electric engine may also mean your classic becomes more reliable which could see you save on breakdown costs.

And remember if breakdowns seem to be a common occurrence in your retro vehicle, classic car insurance from Lancaster can include breakdown cover. Just ask the team for details when you get a quote.

 

Protect your investment with classic car insurance

If you’re lucky enough to own a classic car – whether it’s run by petrol, diesel or electric means – you’re going to need specialist classic car insurance to match.

The last thing you’d ever want is for your classic car to endure any damage but having adequate cover gives you the confidence to use these cars as intended.

We are specialists at providing insurance for all manner of retro and historic vehicles including classic cars, campervans, and old-school 4x4s.

Choosing classic car insurance from Lancaster means you get a range of benefits and discounts including:

• Static show cover
• Historic rally cover
• Salvage retention
• 90 days EU cover
• Limited mileage discounts

We’ve got a great relationship with many of the classic car owners clubs around the UK and can offer a 25% discount for members.

Ask the team when you get a quote. We can also arrange two-year agreed valuations and limited mileage discounts if you don’t drive your classic every day.

You’ll also have access to our 24-hour claims line, so we’re here when you need us.

Get a quote for classic car insurance today.

Policy benefits, features and discounts offered may very between insurance schemes or cover selected and are subject to underwriting criteria. Information contained within this article is accurate at the time of publishing but may be subject to change.