Brit drivers warned as new Budget guidelines imply they may pay £5,490 subsequent 12 months

Petrol and diesel motorists could be slapped with a hefty £5,490 car tax bill next year, following major changes announced in the Budget yesterday. The Treasury’s papers reveal a punch to drivers’ wallets as Vehicle Excise Duty rates for cars, vans, and motorcycles are set to balloon with inflation starting April 1, 2025 — leaving those with gas-guzzling rides (churning out over 255g CO2/km) facing double the rates come next year.

Nicholas Lyes from IAM RoadSmart wasn’t impressed, saying: “Increasing vehicle excise duty on all but zero emission vehicles in the first year will hit those buying new conventional vehicles in the pocket.”

He offered an alternative, suggesting “A better solution to incentivise the take-up of electric vehicles would have been to cut VAT on the sale of new electric vehicles with a list price of £40,000 and under. ” This comes hot on the heels of Labour’s big cheese arguing for revamped VED rates starting April 1, 2025 to crank up the appeal of zero-emission wheels versus their fossil fuel-powered cousins.

If you’re driving clean at 0g CO2/km it’s free for now, but you’ll cough up £10 soon, and it’s up from there — staggering spikes will see owners of motors emitting 51-75g CO2/km facing a rise from £30 to £130, and those with cars churning 91-100g CO2/km, brace yourselves for a hike from £175 to a hefty £350.

For vehicles emitting 171 to 190g/km, the current £1,095 fee will skyrocket to £2,190. Those with emissions of 191 to 225g/km will see a rise from £1,650 to a whopping £3,300, reports Birmingham Live.

Cars emitting 226 to 255g/km will face an increase from £2,340 to £4,680. And for those over 255g/km, the fee will jump from £2,745 to an eye-watering £5,490.

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