Overview
- From April 2026, the standard Vehicle Excise Duty rises from £195 to £200, with several bands increasing, including the over‑255g/km rate moving to £790.
- The Expensive Car Supplement increases to £440 a year for five years, and its £50,000 threshold will apply only to zero‑emission vehicles, leaving hybrids above £40,000 liable.
- Parliamentary critics and industry figures warn the measures will hit petrol, diesel and hybrid drivers and could steer buyers toward cheaper imported EVs at the expense of UK manufacturers.
- Dealers report some owners are scrapping older, higher‑emission models as annual VED bills of £735–£760 make many vehicles effectively unsellable.
- A per‑mile eVED for electric vehicles is being developed for April 2028 at roughly 3p per mile for battery EVs with a lower rate for plug‑in hybrids, and the Treasury says it is reviewing the cost of public charging.