Rachel Reeves confirms rising £410 charge for drivers

Certain road users are paying £410 per year to get behind the wheel of their vehicle under new car tax rules introduced by Rachel Reeves. The Chancellor has overseen Vehicle Excise Duty (VED) car tax updates in April, with costs increasing across the board for petrol, diesel and electric car owners.

Vehicles registered between 2001 and 2017 are charged VED fees based on their overall emissions, with models falling into one of 13 tax bands. These are calculated from a vehicle’s total emissions, with higher-emitting models falling into higher categories.

Motorists in Band J, for cars emitting between 186 and 200g/km of CO2, are set to pay £410 to use the roads across the 2026/27 tax year. This is a £15 rise on the £395 charge paid by road users falling in this tax band between 2025/26, and up £25 on the £385 in fees the year before.

Vehicles falling between these totals typically include 2.0L to 3.0L petrol engine vehicles, larger SUVs, and some performance models. However, the exact emission figures can depend on make and model and most importantly, the specific engine fitted.

VED fees were updated from April 1, with motorists updating their tax agreement this spring set to notice the higher costs. Road users can check how many emissions their vehicle emits by looking at their V5C logbook, which should contain the details.

Information on emissions should also be available on the manufacturer’s website, and MOT test certificates could help. Total emissions are recorded on the MOT pass certificate, allowing road users to obtain a more up-to-date calculation.

By checking the total emissions level, road users can estimate how much they are likely to pay to use the roads between 2026/27.

VED is a legal requirement to use the roads, with motorists forced to re-tax their vehicle every year.

Road users can either make a payment up front, or spread the costs over a series of instalments, although this method may be more costly in the long-run.