Chancellor Rachel Reeves has confirmed a £790 charge on drivers, leading many to scrap their vehicles. The rise in Vehicle Excise Duty (VED) for 2026-2027 was announced in the Autumn Budget last November, hitting motorists hard.
Impact on Older Cars
The new rates apply to cars registered after March 2001, placing many vehicles not yet considered classics at risk. According to motoring experts, 24-year-old cars may be worth under £1,500, meaning the tax bill could represent half their value.
VED Band Structure
For cars registered between March 2001 and April 2017, VED is divided into 13 bands based on CO2 emissions. Since 2025 changes, cars emitting below 100g/km now pay £20 annually, up from zero. The highest band, Band M, charges £790.
Many family cars that could provide years of affordable motoring now cost up to £790 per year to tax. Drivers like Fred Whittaker, 79, who owns two Jaguars costing £445 each, said: "I reckon many of these cars will end up being scrapped long before their condition warrants it."
Derek Thomas, 80, told MailOnline he will scrap his 13-year-old Mercedes C63AMG due to the £790 bill: "It's in pristine condition but will soon have to be scrapped. It's beyond stupidity." John White also reported scrapping his 2006 diesel Land Rover Discovery 3.
