Motorists across the United Kingdom are being alerted to significant increases in Vehicle Excise Duty (VED) set to take effect from the beginning of April. Experts have issued warnings to road users regarding the new tax rates that will impact owners of petrol, diesel, and electric vehicles, with the most polluting models facing the steepest rises.
Inflation-Linked VED Increases Announced
Chancellor Rachel Reeves of the Labour Party confirmed these adjustments during last year's Autumn Budget, stating that VED charges for cars, vans, and motorcycles would rise in line with inflation starting April 1st. This move aligns with the government's fiscal policies and aims to maintain the real value of tax revenues over time.
Substantial Rises for High-Emission Vehicles
Drivers who choose the most environmentally damaging petrol and diesel cars will encounter the most dramatic cost increases. For vehicles emitting over 255 grams of CO2 per kilometre, the first-year registration fee is set to jump from £5,490 to £5,690. This represents a considerable financial burden for those opting for high-performance or less efficient models.
The revised VED structure continues to link tax rates directly to a vehicle's CO2 emissions, reinforcing the incentive to select cars with lower environmental impact. Vehicles with minimal emissions remain in the most affordable tax bands, while those with higher outputs face progressively steeper charges.
Detailed Breakdown of New VED Rates
From April 1st, 2026, the expected first-year car tax rates will be as follows:
- 0g/km - Remains at £10
- 1-50g/km - Rising from £110 to £115
- 51-75g/km - Rising from £130 to £135
- 76-90g/km - Rising from £270 to £280
- 91-100g/km - Rising from £350 to £365
- 101-110g/km - Rising from £390 to £405
- 111-130g/km - Rising from £440 to £455
- 131-150g/km - Rising from £540 to £560
- 151-170g/km - Rising from £1,360 to £1,410
- 171-190g/km - Rising from £2,190 to £2,270
- 191-225g/km - Rising from £3,300 to £3,420
- 226-255g/km - Rising from £4,680 to £4,850
- Over 255g/km - Rising from £5,490 to £5,690
Policy Objectives Behind VED Adjustments
Motoring expert Pete Barden explains the rationale behind these changes: "VED rates in the UK are fundamentally tied to vehicle CO2 emissions. This system places lower-emitting vehicles in more favourable tax bands while penalising those with higher emissions, directly encouraging the adoption of environmentally friendly transport options."
Barden further notes that periodic adjustments to VED rates are necessary to account for inflation, typically increasing in line with the Retail Price Index (RPI) to preserve their economic value. These modifications also reflect the government's broader budgetary requirements and strategic priorities, potentially generating additional revenue while supporting environmental goals.
The upcoming changes underscore the ongoing shift towards greener transportation policies, presenting both challenges and opportunities for UK motorists as they consider their vehicle choices in an evolving fiscal landscape.
