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Rachel Reeves confirms £760 cost for drivers

Drivers are being charged as much as £760 per yr to make use of the roads below new Automobile Excise Responsibility (VED) tax updates.

Rachel Reeves has hit drivers with new automotive tax charges (Picture: Getty)

Some motorists are set to pay £760 to make use of the roads in 2026 after a brand new automotive tax cost carried out by Rachel Reeves. New Automobile Excise Responsibility (VED) tax bands got here into impact from April 1, 2026 with petrol, diesel and electrical automotive house owners all hit with new charges.

Costs enhance in keeping with Retail Worth Index (RPI) inflation each spring, with 2026 no totally different. The Chancellor is answerable for setting VED tax bands, with HMRC confirming will increase late final yr. Virtually all automobiles might want to pay, with costs massively various relying on the make and mannequin of every automotive.

Motorists have been hit with new VED tax bands from April 1 (Picture: Getty)

One set of highway customers will see charges rise by £25, with payments hitting £760 every year in a hefty blow. Vehicles registered between 2001 and 2017 pay VED charges primarily based on their automotive’s total emissions, with fashions positioned into one among 13 tax bands.

Vehicles emitting between 226 and 255g/km of CO2 paid £735 to get behind the wheel earlier than April, with these charges now rising to £760. Nevertheless, it is not the best rise, with vehicles emitting over 255g/km of Co2 paying £30 extra with expenses up from £760 to £790 every year.

Shahzad Shand, host of YouTube channel @BrownCarGuy, careworn that vehicles registered between 2001 and 2017 have been being “handled harshest” of all. He referred to as out the brand new charges, arguing that officers wanted to evaluate the “deeply unfair” charges.

He stated: “These are the vehicles that arguably are handled harshest of all as a result of they match below a very totally different VED regime, one primarily based purely on official CO2 emissions figures from a time when no person actually imagined that these numbers would nonetheless matter fairly this a lot.”

Shahzad added: “This can be a section they really want to have a look at once more. On the greater finish these charges don’t simply really feel harsh, they really feel deeply unfair.”

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Motorists falling into automotive tax bands I, J, Okay have been hit with will increase of £15 per yr. In the meantime, automobiles in Bands G and H are being charged £10 extra to make use of the roads, with fashions in Bands E and F paying £5 extra.

Nevertheless, lower-polluting fashions in Bands A, B and C will not be set to pay extra, with charges remaining the identical as within the final tax yr.

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