Rachel Reeves Confirms Rising £115 Charge for UK Drivers
Rachel Reeves has confirmed some drivers will have to pay £115 to use the roads as part of a major tax update. The Chancellor has overseen new Vehicle Excise Duty (VED) tax updates in recent months, with changes coming into effect from April 1.
According to the MSN news feed, brand new cars paying first-year VED rates are among the most affected, with some drivers paying thousands of pounds to get behind the wheel. The most polluting models emitting over 255g/km of CO2 will be charged £5,690 to drive in 2026/27, but new tax fees will impact new cars across the board.
Even less-polluting models are affected, with cars emitting between 1 and 50g/km of CO2 charged more to use the roads this year. According to Confused.com, these road users will pay £115 in year one, a £5 increase on what these drivers were paying before April.
Cars falling into this category are the lowest-polluting vehicles on the road and tend to be mostly Plug-in Hybrid Electric Vehicles (PHEVs). After the first year on the roads, these drivers are then charged the standard VED fee which currently sits at £200 per annum.
Confused.com said: “When you buy a brand-new car, you’ll pay a first-year rate of vehicle excise duty (VED). This is based on your car’s CO2 emissions. Higher emissions usually mean a higher tax bill. The first-year rate is designed to encourage buyers to choose low or zero-emission cars.”
Reeves previously confirmed that VED rates would rise in the Treasury’s Autumn Budget document published last November.
The report reads: “Vehicle Excise Duty for cars, vans and motorcycles – The government will uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with RPI from 1 April 2026.”
VED is a requirement to use the road, with motorists at risk of being fined or having their car clamped if their vehicle is not properly taxed.
Motorists can pay their VED road tax bills online, through a call to the DVLA vehicle tax service or on the high street at the Post Office.
HMRC previously said: “As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from April 1, 2026.”
