British motorists are being warned of upcoming changes to car tax launching soon that will see almost all road users slapped with new costs.
From April 1, 2025, drivers will be hit with new car tax changes, many of which were announced by Chancellor Rachel Reeves in October’s Autumn Statement.
Vehicle Excise Duty (VED) prices will be hiked for cars, vans and motorcycles, excluding first year rates for cars, in line with RPI inflation.
Electric vehicles will also have to pay car tax for the first time after former Conservative Chancellor Jeremy Hunt said all drivers needed to pay a fair share for their use of the roads.
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Experts have warned that Rachel Reeves’s car tax changes will hammer drivers
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First year rates will also be hiked significantly as the Government aims to incentivise drivers to invest in electric vehicles rather than combustion engine alternatives.
From April 1, 2025, zero emission cars will pay the lowest first year rate at just £10, while cars emitting between one and 50g of CO2 per kilometre, including hybrids, will rise to £110.
All other rates for cars emitting 76g/km of CO2 and above will double from their current levels, meaning the most polluting new petrol and diesel cars could pay as much as £5,490.
Richard Evans, spokesperson for webuyanycar, warned that millions of drivers would be impacted by the new changes to Vehicle Excise Duty.
He said: “From April 2025, road tax is expected to increase for every vehicle. The aim is to encourage more lower-emission and electric vehicles on the road.
“The road tax increase is thought to impact over 19.9 million cars that were manufactured pre-2017. This driving law change is due to impact a significant number of drivers.
“Additionally, for pre-2017 vehicles running on diesel or petrol and emitting over 76g/km of CO2, the first-year tax will double compared to the current rate.”
The Autumn Statement also saw Chancellor Rachel Reeves comment on the future of the Expensive Car Supplement (ECS) as experts call for the measure to be scrapped.
The ECS is paid by drivers who own vehicles that have a list price of more than £40,000. It costs £410 and is paid for the first five years from the start of the second licence.
Budget documents acknowledged the “disproportionate impact” it had on people wanting to buy electric vehicles, but said a verdict on the decision would only be made “at a future fiscal event”.
Chancellor Rachel Reeves could make an announcement regarding the future of the ECS in the upcoming March 26 Spring Statement which will see the Labour MP for Leeds West and Pudsey outline the Government’s future economic plans.
Evans continued, saying: “Taking steps towards a more eco-friendly road can only be seen positively and as electric vehicles become increasingly popular amongst car buyers, securing 21.6 per cent of the market share, these Budget announcements will come as no surprise to many.
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“For those with vehicles manufactured before 2017, who may be affected by these road tax increases, it could be time to consider swapping your car for a new, more environmentally friendly model.”
