New car tax changes set to ruin Ed Miliband’s | Tech News
New car tax updates set to come into impact in 2026 may “deter” drivers from switching to fully-electric autos which may derail Ed Miliband and Labour. Experts have warned that motorists are seemingly to be put off shopping for electric autos due to “new costs in place” similar to Vehicle Excise Duty (VED) and emissions zone hikes.
With much less than half a decade till the UK’s petrol and diesel car ban takes maintain, the transfer threatens to blow up Energy Secretary Ed Miliband’s plans.
Speaking completely to Express.co.uk, Rhydian Jones, motoring skilled at Confused.com warned EV drivers face hefty costs after beforehand being exempt.
He defined: “And this year could see many changes and new charges for EV drivers – who were once exempt from many things like VED and congestion zone charges. However, with these new costs in place, we could see many drivers deterred from switching to EVs, despite the ban on new petrol and diesel vehicles only 4 years away.”
Ed Miliband’s department has been crucial in pushing motorists to switch to EVs, with officials still handing out grants to people who buy certain electric models. Back in 2021, Miliband claimed that the country needed “to make electric vehicle ownership affordable for people”. New price hikes would go against this.
Standard VED fees will rise from £190 to £195 per annum in April, while first-year rates for EVs will stay the same. Electric car owners in London are set to face a blow, with EVs paying the Congestion Charge for the first time ever as of January.
Fees are slightly lower than for petrol and diesel cars, but motorists will still pay out up to £13.50 per day to get behind the wheel. 2026 will also see a 1% increase in company car Benefit in Kind rates for electric vehicles, with EVs now paying 4%.
Despite the crucial update, the move looks to have gone unnoticed, with just 13% of 2,000 surveyed admitting they were aware of the new rule. There is also a lack of awareness around another key change, which is set to be positive for EV consumers.
According to Confused.com, solely 33% of 2,000 drivers surveyed stated they had been conscious of an increase in luxurious car tax thresholds in 2026. The transfer will imply automobiles solely pay the Expensive Car Supplement (ECS) charge if their model is valued over £50,000, not £40,000.
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