Rachel Reeves is behind new automobile tax charges being utilized to motorists in 2026, with adjustments already coming into impact earlier this spring.
Rachel Reeves has overseen the introduction of recent automobile tax payments (Picture: Getty) This text accommodates affiliate hyperlinks, we are going to obtain a fee on any gross sales we generate from it. Be taught extra
Rachel Reeves has launched new automobile tax bands for street customers this spring, with sure street customers charged as much as £170 to make use of the roads. Car Excise Responsibility (VED) charges change yearly, with 2026 no exception as motorists tackle the most recent inflationary annual rises.
Amongst these affected are automobiles registered between 2001 and 2017, with motorists positioned into one among 13 tax bands based mostly on total automobile emissions. Autos falling into automobile tax band D, emitting between 121 and 130g/km of CO2 have been hit with new charges as drivers pay £170 to get behind the wheel.
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Drivers are actually paying extra to make use of the roads (Picture: Getty)
This cost is up on the £160 paid by street customers on this class between the 2024/25 tax 12 months and the £165 paid between 2025/26. The most recent rise signifies that these street customers have confronted a £5 improve on their complete VED payments over every of the previous two years.
Automobiles on this class are usually fashionable, fuel-efficient compact hatchbacks and small SUVs. In the meantime, autos on this class can even embrace some mild-hybrid petrol or diesel automobiles.
The brand new VED automobile tax bands have been launched from April 1, which means motorists taxing their autos as we speak can pay the upper charges. VED automobile tax is a authorized requirement, with street customers required to make sure their automobile is taxed correctly earlier than getting behind the wheel and utilizing it on the roads.
Nevertheless, these rises are slight in comparison with drivers falling into different classes, with model new automobiles paying among the many highest charges.
These securing the keys to new highly-polluting fashions are paying as much as £200 extra to make use of the roads, with payments as much as £5,690 every year. The RAC admitted that automobile tax updates for autos between 2001 and 2017 have been “broadly the identical”.
The RAC mentioned: “VED street tax charges for automobiles first registered after March 2001 and earlier than April 2017 are cut up throughout 13 bands relying on the CO2 emissions of the automobile. In fundamental phrases, the decrease the CO2, the decrease the tax band.
“Street tax for petrol and diesel automobiles registered after March 2001 and earlier than April 2017 is broadly the identical.”
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