Motorists across the UK are set to be slapped with hefty car tax costs over the coming months as the Government hikes Vehicle Excise Duty rates.Chancellor Rachel Reeves unveiled new car tax rates for drivers in the recent Autumn Budget, which included controversial plans to launch pay-per-mile charges for electric car and hybrid owners from 2028.She confirmed that Vehicle Excise Duty for cars, vans and motorcycles would rise in line with the Retail Price Index from the new financial year on April 1, 2026.It follows changes made by the Chancellor the year prior, when the Government attempted to “widen the differentials” between internal combustion engine vehicles, hybrids and electric cars.
TRENDING
Stories
Videos
Your Say
Labour confirmed that VED first year rates would change from April 1, 2025, with zero emission cars paying a first year rate of just £10 until 2029-2030, and modest increases for vehicles emitting between one and 50g of CO2 per kilometres.Vehicles in this band, including hybrids, would pay £110 in the first year of the car’s registration, which covers the first 12 months of it being on the road.However, any vehicles that emit more than 76g/km saw costs double from £270 for cars in the 76-90g/km bracket to a staggering £5,490 for the most polluting vehicles.With the upcoming inflation-related rise for VED first year rates, motorists looking to invest in the most polluting vehicles could end up paying as much as £5,690.Certain drivers will also have to pay more, depending on the type of diesel vehicle they invest in, if they do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.All other diesel cars which do not meet the RDE2 standard will see higher prices than other diesel vehicles if they emit between one and 255g/km, with rates being equalised when emitting more than 255g/km.The Office for Budget Responsibility forecasts that VED will raise £9.1billion in 2025/26, representing 0.3 per cent of national income. To help drivers prepare for the new rules, GB News has rounded up all of the expected Vehicle Excise Duty changes expected to launch from April 1, 2026.LATEST DEVELOPMENTSRevolutionary electric car technology hits significant milestone with 100 million battery swapsM3 traffic: Major motorway to ‘remain closed’ for hours amid ‘police-led incident’Electric car revolution in jeopardy as UK faces backlog of 44,000 EV-qualified techniciansExpected first year car tax rates from April 1, 20260g/km – Remains at £101-50g/km – Rising from £110 to £11551-75g/km – Rising from £130 to £13576-90g/km – Rising from £270 to £28091-100g/km – Rising from £350 to £365101-110g/km – Rising from £390 to £405111-130g/km – Rising from £440 to £455131-150g/km – Rising from £540 to £560151-170g/km – Rising from £1,360 to £1,410171-190g/km – Rising from £2,190 to £2,270191-225g/km – Rising from £3,300 to £3,420226-255g/km – Rising from £4,680 to £4,850Over 255gkm – Rising from £5,490 to £5,690
Our Standards:
The GB News Editorial Charter
