Chancellor Rachel Reeves is reportedly considering a significant car tax shake-up that could impact nearly 700,000 classic vehicle owners in the UK. The potential changes, which may be announced in the upcoming Autumn Budget, have sparked concerns about the future of Britain's motoring heritage.
The Scale of the Classic Car Community
New data from the Federation of British Historic Vehicle Clubs (FBHVC) reveals the substantial economic and cultural impact of historic vehicles across the nation. According to their 2025 National Historic Vehicle Survey, there are almost two million historic vehicles registered in the UK, with current ownership standing at 690,777 people.
The survey also indicates growing interest in classic car ownership, with 9.7 million people across the country expressing desire to own a historic vehicle. Furthermore, an impressive 22.7 million Britons consider historic vehicles an important part of Britain's cultural heritage.
Economic Impact and Demographic Challenges
The FBHVC data shows that classic car ownership represents a significant economic sector, with the average owner spending approximately £4,567 every year on maintenance, restoration, and associated costs. This substantial financial contribution supports numerous small businesses and specialist workshops across the country.
However, the community faces demographic challenges. David Whale, Chairman of the FBHVC, emphasised that the average classic car owner is now in their sixties, creating an urgent need to inspire and train the next generation of enthusiasts and technicians.
Political Response and Budget Concerns
The potential tax changes come amid warnings from Shadow Transport Secretary Richard Holden, who suggested that Ms Reeves might examine motoring taxation to address a £50 billion financial black hole. Mr Holden has made it his priority to ensure the classic car sector receives protection in the upcoming Budget and that a damaging 'tax grab' is avoided.
Meanwhile, the FBHVC is taking proactive measures to secure the future of historic vehicles. Their new Youngtimer initiative and support for industry apprenticeships aim to develop the next generation of engineers and restorers essential for preserving these automotive treasures.
With estimates suggesting classic vehicle ownership will reach 697,000 by the end of the decade, the outcome of the Autumn Budget decisions could have lasting implications for both current owners and future generations of vehicle enthusiasts.