Treasury issues update on plans for ‘review’ of | Tech News
The Government has issued an update about adjustments to street tax. Vehicle Excise Duty, also called street tax, is set to increase according to inflation again in April 2026.
Independent MP James McMurdock requested Chancellor Rachel Reeves in a written query in Parliament if she has any plans to “review the structure of Vehicle Excise Duty”. Treasury minister Dan Tomlinson supplied a response from the Government.
He stated: “Vehicle Excise Duty (VED), sometimes known as ‘road tax’ or ‘car tax’, is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.”
On the query of making adjustments to the system, Mr Tomlinson stated: “The Government has no current plans to review this structure.” However, he did affirm that there are some important adjustments coming up.
The minister defined: “At Autumn Budget 2025, the government announced the introduction of Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028. Drivers will pay for their mileage alongside their existing Vehicle Excise Duty (VED).”
Under the proposals, EV drivers pays 3p per mile whereas these with plug-in hybrids pays 1.5p per mile, with charges linked to inflation. The Government is at the moment operating a session on the plans.
The session explains: “It will be set at half of the equivalent rate of fuel duty for electric cars, and half again for plug-in hybrid cars. eVED will ensure all car drivers contribute, but will still maintain important incentives to switch to an electric vehicle. eVED will not require ‘trackers’ in cars, nor will the government ask people to interact with a whole new tax system: car drivers will pay for the miles they drive alongside paying their usual road tax (VED).”
Electric autos grew to become subject to vehicle excise obligation from April 2025. In the Autumn Budget, Chancellor Rachel Reeves introduced that the VED Expensive Car Supplement threshold would increase from £40,000 to £50,000 from April 2026.
VED charges for autos of every kind will rise according to inflation from April 2026.
Stay forward of the curve with the newest developments within the automotive world! Our web site is your final vacation spot for car information, delivering complete updates, in-depth market evaluation, and skilled insights into the fast-evolving automotive industry. We convey you every day protection on every part from breakthrough vehicle applied sciences and industry trends to main bulletins which are driving the longer term of transportation.
Discover how these trends are reworking the street forward! Visit us frequently for participating and informative content material by clicking right here. Our meticulously curated articles cowl market trends, investment methods, and key milestones in as we speak’s quickly evolving car panorama.
