URGENT UPDATE: Starting April 1, 2024, millions of UK drivers will face dramatic increases in Vehicle Excise Duty (VED) rates for petrol and diesel cars. The Labour Party government has just confirmed these changes, which will impact numerous tax bands, with some drivers paying as much as £790.
The announcement comes as part of an annual review, and experts warn that these increases could add financial strain to already burdened motorists. Rhydian Jones, a car insurance expert at Confused.com, emphasized the urgency, stating, “These increases will affect drivers across the country, so it’s important to know what you will be expected to pay before your renewal date arrives.” With other motoring costs also set to rise this year, this news is likely to be unwelcome for many.
The new VED rates will see cars registered between March 1, 2001, and April 1, 2017, facing varying increases based on their emissions. Here’s a breakdown of the changes:
– Up to 100g/km: Remains at £20
– 101 to 110g/km: Remains at £20
– 111 to 120g/km: Remains at £35
– 121 to 130g/km: Increasing from £165 to £170
– 131 to 140g/km: Increasing from £195 to £200
– 141 to 150g/km: Increasing from £215 to £225
– 151 to 165g/km: Increasing from £265 to £275
– 166 to 175g/km: Increasing from £315 to £325
– 176 to 185g/km: Increasing from £345 to £360
– 186 to 200g/km: Increasing from £395 to £410
– 201 to 225g/km: Increasing from £430 to £445
– 226 to 255g/km: Increasing from £735 to £760
– Over 255g/km: Increasing from £750 to £790
Chancellor Rachel Reeves announced these reforms, stating her commitment to adjust motoring taxes. She highlighted the intention to exempt search and rescue vehicles from VED and implement an Electric Vehicle Excise Duty for electric cars, aiming for fairness in taxation based on vehicle usage.
As the April deadline approaches, drivers are urged to familiarize themselves with the new rates to prepare for the increased costs. The financial implications of these changes could lead to significant adjustments in household budgets, especially for those who rely heavily on their vehicles.
The Labour Party’s latest reforms represent a pivotal shift in how vehicle taxes will be structured, aligning with environmental goals while aiming for equitable taxation based on usage. For drivers looking to navigate these changes, understanding the new rates is essential to avoid unwelcome surprises.
Stay tuned for more updates as we continue to monitor this developing story.
