Rachel Reeves confirms rising £325 charge for | Tech News
Rachel Reeves has confirmed some drivers will probably be slapped with a new £325 charge to make use of the roads as new tax modifications come into impact. The Chancellor has overseen the introduction of new Vehicle Excise Duty (VED) tax bands, with charges rising earlier this yr.
Tax costs elevated throughout the board from April 1, with virtually all petrol, diesel and electric car homeowners going through some type of increase. Among these going through new fees are older automobiles first registered between 2001 and 2017, with automobiles grouped into one of 13 tax bands.
Vehicles emitting between 166 and 175g/km of CO2 are set to pay £325, a £10 increase on what drivers falling into this class over the 2025/26 tax yr. Motorists hoping to unfold the price into two instalments can pay £178.75 each six months or £357 in whole over a calendar yr.
Common automobiles falling into this class embrace household hatchbacks and saloons, compact SUVs and a few crossovers. VED tax payments increase yearly consistent with Retail Price Index (RPI) inflation and there was no exception for 2026.
VED charges are up throughout the board, with homeowners of model new automobiles most affected by hefty first-year VED fees, with some paying up to £5,690 to make use of the roads. The RAC has beforehand revealed how drivers can discover which tax band their vehicle falls into.
The specialists defined that drivers will normally need the yr that their vehicle was first registered, which will be positioned on the V5C logbook.
Identifying the car’s fuel sort and CO2 emissions was additionally essential, with motorists then capable of rapidly determine the place it falls among the many record of tax bands.
HMRC beforehand 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 consistent with the Retail Price Index (RPI) for 2026 to 2027. This will take impact from April 1, 2026.”
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