Rachel Reeves confirms £2,270 charge for drivers | Tech News
Some drivers are being compelled to pay £2,270 per yr to get behind the wheel, as half of new tax tweaks launched by Rachel Reeves. The Chancellor of the Exchequer has overseen a collection of new updates to Vehicle Excise Duty (VED) charges this April, with petrol, diesel and electric car homeowners all affected.
VED charges rise each 12 months consistent with inflation, with price hikes coming each spring. Motorists throughout the board are affected by the adjustments, however brand-new car homeowners face the very best payments with first-year tax payments up within the 1000’s.
This is already an £80 rise on the £2,190 first-year tax charges for vehicles emitting between 171 and 190g/km of CO2 final yr. Over the 2024/25 tax yr, autos on this band have been paying simply £1,095 per yr to make use of the roads.
Labour opted to double first-year VED tax charges final yr, whereas this April’s increase is barely an annual inflationary rise. Performance fashions, massive petrol and diesel SUVs, and luxurious autos are inclined to fall within this class, that means many house owners could possibly be affected.
Confused.com stated: “When you buy a brand-new car, you’ll pay a first-year rate of vehicle excise duty (VED). This is based on your car’s CO2 emissions. Higher emissions usually mean a higher tax bill. The first-year rate is designed to encourage buyers to choose low or zero-emission cars.”
After the primary yr on the roads, model new vehicles will begin paying the usual VED price for vehicles registered after 2017. This presently stands at £200 per yr, however can be liable to annual rises, that means this can seemingly be more costly subsequent April.
HMRC confirmed the April 2026 tax bands shortly after Rachel Reeves Autumn Budget assertion final November.
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