Overview
- HMRC confirmed the government will include the uprating in the Finance Bill 2025–26, taking effect on 1 April 2026.
- Motoring analysts report the standard VED rate for newer cars is expected to move to about £200 under the RPI increase.
- First‑year charges for new cars emitting over 255g/km of CO2 are projected to rise to £5,690, up from £5,490.
- For cars registered between 2001 and 2017 on CO2 bands, the top Band M annual charge is reported to climb to about £790, with Band L rising to roughly £760.
- Petrol, diesel and electric vehicle owners are set to pay more under the uprating, and some local politicians have criticised the plan as unfair to drivers switching to cleaner models.