Rachel Reeves has confirmed a £410 charge for cars made between 2001 and 2017 under the new Labour Party government Vehicle Excise Duty (VED) rates. VED road tax rates for cars first registered after March 2001 and before April 2017 are split across 13 bands depending on the CO2 emissions of the vehicle.
In basic terms, the lower the CO2, the lower the tax band. Since 2025 VED rule changes, cars with CO2 emissions below 100g/km no longer qualify for free road tax. This means you now have to pay £20 a year for VED if your car emits up to 100g/km of CO2.
Road tax for petrol and diesel cars registered after March 2001 and before April 2017 are broadly the same. Under the new bands, there are 13 different rates.
Band J, for cars emitting between 186 and 200g/km of CO2, will sting drivers, motorists and road users with a £410 fee for 2026 to 2027.
David Ross, from Honest John, explained: "Assuming your vehicle was registered before 1st April 2017 the VED rate is calculated by its CO2 emissions. For the Skoda Citgo GreenTech the emissions are 98g/km, which in previous years meant a zero rate of VED. The new rates of VED apply from 1st April 2026 and vehicles under 100g/km will now have to pay £20 per year."
Kenneth Rowson, one road user, hit back at the hikes from Labour and sniped: "VED has nothing to do with Road Tax and is just another Tax imposed on motorists which goes into the general tax pot. Most modern cars are far less poluting than cars manufactured during the mid to latter part of the 20th century. All vehicles which use our roads should pay a fair amount based on their weight in order to maintain our roads to a good standard and the present VED should be abolished and replaced with a fairer tax that does not unfairly penalise the motorists."
