Rachel Reeves confirms £170 charge for drivers | Tech News
Rachel Reeves has launched new car tax bands for highway customers this spring, with sure highway customers charged up to £170 to make use of the roads. Vehicle Excise Duty (VED) charges change yearly, with 2026 no exception as motorists tackle the newest inflationary annual rises.
Among these affected are vehicles registered between 2001 and 2017, with motorists positioned into one of 13 tax bands primarily based on total vehicle emissions. Vehicles falling into car tax band D, emitting between 121 and 130g/km of CO2 have been hit with new charges as drivers pay £170 to get behind the wheel.
This charge is up on the £160 paid by highway customers on this class between the 2024/25 tax 12 months and the £165 paid between 2025/26. The newest rise implies that these highway customers have confronted a £5 increase on their complete VED payments over every of the previous two years.
Cars on this class are usually trendy, fuel-efficient compact hatchbacks and small SUVs. Meanwhile, automobiles on this class may even embrace some mild-hybrid petrol or diesel vehicles.
The new VED car tax bands had been launched from April 1, which means motorists taxing their automobiles immediately can pay the upper charges. VED car tax is a legal requirement, with highway customers required to make sure their vehicle is taxed correctly earlier than getting behind the wheel and utilizing it on the roads.
However, these rises are slight in comparison with drivers falling into different classes, with model new vehicles paying among the many highest charges.
Those securing the keys to new highly-polluting fashions are paying up to £200 more to make use of the roads, with payments up to £5,690 each year. The RAC admitted that car tax updates for automobiles between 2001 and 2017 had been “broadly the same”.
The RAC stated: “VED road tax rates for cars first registered after March 2001 and before April 2017 are split across 13 bands depending on the CO2 emissions of the vehicle. In basic terms, the lower the CO2, the lower the tax band.
“Road tax for petrol and diesel cars registered after March 2001 and before April 2017 is broadly the same.”
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