Rachel Reeves confirms £35 charge for drivers | Tech News
Certain highway customers can pay £35 to get behind the wheel and use the roads this yr, after tax costs applied by Rachel Reeves. The Labour Chancellor has introduced tax hikes on highway customers, with annual inflationary will increase affecting Vehicle Excise Duty (VED) costs.
Petrol, diesel and electric car house owners have all been hit with increased charges, that means motorists need to dip into their wallets for additional money to retain their freedom to drive. Among these impacted by the new VED car tax bands are automobiles first registered between 2001 and 2017.
Owners of these fashions are positioned into one of 13 car tax bands, with charges rising relying on general vehicle emissions. However, low-emission fashions and electric automobiles are amongst these not affected by hefty will increase, with payments not rising.
Vehicles falling into Band C, automobiles emitting between 111 and 120g/km of CO2, can pay £35 in VED over the 2026/27 tax yr. It’s the identical charge motorists paid over the 2024/25 and 2025/26 tax years in a enhance to house owners.
Usually, automobiles falling into this class embody some of probably the most environment friendly petrol and diesel fashions and hybrid automobiles. VED is cheaper for low-emission fashions because the decrease charges act as a main incentive for highway customers to change to cleaner fashions.
In comparability, highly-polluting fashions are paying a whole bunch to make use of the roads, with automobiles emitting over 255g/km of CO2 charged £790 to get behind the wheel. Motorists pays VED costs yearly, or slice up the annual invoice into a collection of smaller instalments.
Drivers will often obtain a latest vehicle tax reminder or ‘last chance’ warning letter from the DVLA to remind highway customers when their invoice is due.
Motorists can tax their vehicle online in simply a matter of minutes, or pay the charge in particular person on the Post Office.
HMRC stated: “As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.”
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