Overview
- From 1 April 2026, Vehicle Excise Duty will rise in line with RPI, lifting the standard rate for cars registered after 2017 from £195 to £200.
- First‑year VED on the most polluting new cars climbs to £5,690, with smaller increases across other CO₂ bands.
- Drivers of vehicles registered between 2001 and 2017 face higher annual bands, with the top rate moving from £760 to £790.
- A new electric vehicle excise duty will charge EVs 3p per mile from 2028, with plug‑in hybrids at 1.5p, paid alongside existing VED.
- Fleet operators, manufacturers and some MPs warn the per‑mile plan could deter EV uptake, while the Treasury argues EVs will remain a cheaper, greener choice.