Motorists are paying lots of to make use of the highway below new automobile tax Automobile Excise Responsibility (VED) bands overseen by Rachel Reeves.
Rachel Reeves has hit drivers with new VED tax bands (Picture: Getty)
Some drivers are dealing with payments of £170 to remain on the highway as a consequence of new automobile tax modifications launched by Rachel Reeves. Automobile Excise Responsibility (VED) tax bands had been up to date from April 1, with rising prices for nearly all petrol, diesel and electrical automobile homeowners.
VED charges rise with inflation each spring, and 2026 is not any totally different, with charges up throughout the board. These impacted by new VED bands embrace motorists with automobiles first registered between 2001 and 2017, with highway customers positioned into certainly one of 13 tax bands.
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The brand new costs imply drivers are paying lots of to make use of the highway (Picture: Getty)
These bands are decided primarily based on total automobile emissions, with greater polluting fashions paying extra to remain behind the wheel. Automobiles in automobile tax band D, emitting between 121 and 130g/km of CO2, pays £170 in VED charges between the 2026/27 tax 12 months.
It is a £5 improve on the £165 charge utilized to motorists during the last tax 12 months up till the beginning of April 2026. The £5 rise mirrored the rise of the 12 months earlier than, with highway customers charged £160 to make use of the roads over the 2024/25 tax 12 months.
Automobiles on this class often embrace petrol and diesel hatchbacks and a few compact SUVs, a phase of automobiles which are vastly widespread on UK roads. Larger-polluting automobiles are charged extra to make use of the roads, with automobiles emitting over 255g/km of CO2 paying £790 from this April.
In the meantime, automobiles in automobile tax band L, emitting between 226 and 255g/km of CO2 pays £760 every year. VED is a authorized requirement, which means highway customers should guarantee they accurately tax their automobile earlier than getting behind the wheel and driving on a public highway.
Motorists who’re not utilizing their automobiles and want to cease paying automobile tax can apply for a Statutory Off Street Notification (SORN).
HM Income and Customs confirmed the rise in VED charges late final 12 months after Rachel Reeves’ Autumn Price range assertion.
HMRC defined: “As introduced at Price range 2025, the Authorities will introduce laws in Finance Invoice 2025-26 to uprate Automobile Excise Responsibility charges for automobiles, vans and bikes in keeping with the Retail Worth Index (RPI) for 2026 to 2027. It will take impact from 1 April 2026.”
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