Rachel Reeves confirms new £360 charge for drivers | Tech News
Certain motorists are set to pay £360 per yr to make use of the roads underneath new car tax charges launched by Rachel Reeves. New Vehicle Excise Duty (VED) bands have been launched by the Chancellor earlier this month, with nearly all vehicle house owners set to pay more.
New tax band charges have an effect on nearly all petrol, diesel and electric car house owners, with completely different charges affecting varied fashions. One set of street customers affected by new charges is van house owners, with these street customers going through payments of up to £360 per yr.
According to HM Revenue and Customs (HMRC) knowledge launched late final yr, early Euro 4 and Euro 5 compliant vans registered after March 2001 pays £140 per yr to make use of the roads. This is similar charge as final yr and the yr earlier than, with no will increase coming into impact.
However, all different vans pays barely more, with charges rising from £345 to £360 from the 2026/27 tax yr. This is a larger increase than van house owners skilled final yr when payments went up from £335 to £345 every year.
It’s not the one charge, with automobiles registered after 2017 paying £200 per yr to make use of the roads and house owners of model new automobiles paying up to £5,690 per yr. Those with the keys to older automobiles registered between 2001 and 2017 are positioned into one of 143 tax bands, with charges as high as £790 every year.
This yr’s VED rises are an inflationary increase, with street tax rising each spring in keeping with Retail Price Index (RPI) inflation.
HMRC confirmed VED rises have been to come back into impact from April shortly after Rachel Reeves’ Autumn Budget final November.
HMRC stated: “As introduced at Budget 2025, the Government will introduce laws in Finance Bill 2025-26 to uprate Vehicle Excise Duty charges for automobiles, vans and bikes in keeping with the Retail Price Index (RPI) for 2026 to 2027. This will take impact from April 1, 2026.”
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