Rachel Reeves confirms new £375 charge for drivers | Tech News
Certain motorists are paying up to £375 per 12 months to make use of the roads beneath new car tax charges launched by Rachel Reeves. The Chancellor of the Exchequer oversaw main updates to Vehicle Excise Duty (VED) car tax charges from April 1, with petrol, diesel and electric car house owners affected.
Among these hit with price hikes are older automobiles, with automobiles registered earlier than 2001 hit with their own separate tax rise. Classic automobiles registered more than 40 years in the past are utterly exempt from VED charges beneath the historic tax exemption rule.
However, automobiles registered after 1986 however earlier than 2001 pay VED primarily based on the dimensions of their engine. Cars above 1549cc now pay £375 per 12 months in VED charges, up £15 on the £360 charge utilized to highway customers over the 2025/26 tax 12 months.
Meanwhile, smaller automobiles with engines at 1549cc and under pay much less, with these house owners charged £230 every year in comparison with £220 earlier this 12 months. Both will increase observe these utilized final 12 months, with a £15 and £10 increase additionally making use of to house owners between the 3024/25 and 2025/26 tax years.
Paul Cowland, presenter of the favored TV show Savage Hunters, pressured that house owners of historic automobiles ought to anticipate to pay more.
Speaking on YouTube channel @Cowland Car Collection, Paul mentioned: “Pre 2001, big cars are up to £375. That’s not the end of the world but if you are running something that’s a bit meaty and a bit lumpy, it will cost a little bit more than it did last year, But hopefully, not a deal breaker for you.”
The will increase are easy inflationary rises, with VED prices rising in step with Retail Price Index (RPI) inflation each spring. However, will increase will nonetheless be a hefty blow to cash-strapped house owners already battling costly car possession prices like rising fuel charges.
They mentioned: “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 in step with the Retail Price Index (RPI) for 2026 to 2027. This will take impact from April 1, 2026.”
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