Rachel Reeves confirms rising £170 charge for | Tech News
Some drivers are going through payments of £170 to remain on the highway because of new car tax adjustments launched by Rachel Reeves. Vehicle Excise Duty (VED) tax bands have been up to date from April 1, with rising prices for virtually all petrol, diesel and electric car homeowners.
VED charges rise with inflation each spring, and 2026 is no completely different, with charges up throughout the board. Those impacted by new VED bands embrace motorists with autos first registered between 2001 and 2017, with highway customers positioned into one of 13 tax bands.
These bands are decided based mostly on general vehicle emissions, with increased polluting fashions paying more to remain behind the wheel. Vehicles in car tax band D, emitting between 121 and 130g/km of CO2, can pay £170 in VED charges between the 2026/27 tax yr.
This is a £5 increase on the £165 price utilized to motorists during the last tax yr up till the beginning of April 2026. The £5 rise mirrored the increase of the yr earlier than, with highway customers charged £160 to make use of the roads over the 2024/25 tax yr.
Cars on this class often embrace petrol and diesel hatchbacks and a few compact SUVs, a phase of autos which can be vastly fashionable on UK roads. Higher-polluting vehicles are charged more to make use of the roads, with vehicles emitting over 255g/km of CO2 paying £790 from this April.
Meanwhile, autos in car tax band L, emitting between 226 and 255g/km of CO2 can pay £760 every year. VED is a legal requirement, that means highway customers should guarantee they accurately tax their vehicle earlier than getting behind the wheel and driving on a public highway.
Motorists who’re no longer utilizing their autos and want to stop paying vehicle tax can apply for a Statutory Off Road Notification (SORN).
HMRC defined: “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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