New car tax bands coming in 2026 for petrol and | Tech News

Petrol and diesel car homeowners can be hit with larger car tax fees from April 2026 below new updates to Vehicle Excise Duty (VED) bands. Analysis from Pete Barden has revealed nearly all drivers will face will increase subsequent Spring as half of annual inflationary VED hikes.

Bills for the best polluting fashions might rise by as a lot as £250 per yr in a main blow for cash-strapped motorists. The specialists have predicted that commonplace VED charges, first-year fees and Expensive Car Supplement charges are all anticipated to increase from April 1. VED charges rise annually based mostly on Retail Price Index (RPI) inflation, which Pete Barden claims might be round 4.6%.

Pete Barden defined: “Drivers should brace for another inflation-linked rise in road tax from April 2026, with costs for new and existing vehicles likely to climb by a similar percentage – around 4.6%. For many motorists, this could mean paying £10–£40 more a year depending on their vehicle’s emissions band.”

Although electric vehicles at the moment are charged VED charges, petrol and diesel automobiles are nonetheless most affected, with most charges calculated based mostly on emissions. Based on this prediction, they imagine commonplace VED charges will rise from £195 per yr to £204 per yr in a £9 annual increase.

First-year VED charges are based mostly solely on vehicle emissions, with the cleanest fashions paying simply £110 per yr to make use of the roads. According to Pete Barden’s evaluation, this might increase to £115 in an approximate 4-5% increase in charges.

Most polluting automobiles emitting over 255g/km of CO2 now pay £5,490 per yr after Labour doubled tax bands final yr. However, these payments might rise to £5,740 per yr from April if the average RPI discount stays in place over the subsequent 5 months.

Pete Barden additionally believes the Expensive Car Supplement charge might rise from £425 per yr to £445 per yr in a £20 increase.

Pete Barden added: “While 4–5% may not sound huge, it adds up – especially alongside other motoring costs like fuel, insurance, and servicing that have all been rising faster than wages.

“It’s also being suggested that the fuel duty freeze could be scrapped in Rachel Reeves‘ November 26 Autumn Budget – adding even more pain to motorists’ wallets.”