New VED Rates Hit High-Emission Cars
Rachel Reeves, the Labour Party Chancellor, has implemented new Vehicle Excise Duty (VED) rates that impose a £474 monthly charge on 59 high-emission cars, just before her anticipated exit from the role. The new rates, confirmed in April 2026, apply to vehicles producing CO2 emissions over 255g/km, with the top band now costing £5,690 for the first year, an increase of £200 from the previous £5,490.
Vehicles Affected
The list of 59 cars includes models from Land Rover, Ford, Audi, Lamborghini, Porsche, Bentley, Volkswagen, INEOS, Mercedes-Benz, Chevrolet, Aston Martin, Ferrari, Maserati, Toyota, BMW, Lotus, Jaguar, Rolls-Royce, Alfa Romeo, McLaren, and Jeep. Examples include the Land Rover Defender 90 5.0 P425 V8, Ford Ranger 2.0 TD EcoBlue, Audi RSQ8 4.0 TFSI V8, Lamborghini Huracan 5.2 V10, and Porsche 911 3.7T 992 Turbo.
Other Rate Increases
Other high VED bands have also risen: cars emitting 226-255g/km increased from £4,680 to £4,850; 191-225g/km from £3,300 to £3,420; and 171-190g/km from £2,190 to £2,270. These increases apply to cars registered after April 2017, with first-year rates effective from 1 April 2026.
Political Context
The tax changes come amid widespread reports that Reeves will be replaced as Chancellor when Andy Burnham becomes Prime Minister. According to sources, Burnham is expected to appoint Birmingham MP Shabana Mahmood as the new Chancellor. The move has sparked debate about the impact on motorists and the government's environmental policies.
