New car tax and VED bands for 2026 leaked for millions of UK drivers – Birmingham Live
New car tax and Vehicle Excise Duty bands have been seemingly revealed for 2025 to 2026. Motoring journalist and expert Pete Barden has looked at how much you could be paying to tax your vehicle from April 1, 2026 through to April 2027.
Discussing the new rates, Pete said: "Every autumn, the September inflation data becomes a key figure for drivers – because it’s used to set the following April’s Vehicle Excise Duty (VED) rates.
"The latest figures from the Office for National Statistics confirm that the headline inflation level held steady at 3.8% in September 2025, the same as in August. While the Government typically bases VED rises on the Retail Prices Index (RPI) rather than CPI, the two measures tend to move in similar directions – and RPI is still expected to hover around 4.6% for September, according to forecasts from analysts.
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"That means drivers should brace for another inflation-linked rise in road tax from April 2026, with costs for new and existing vehicles likely to climb by a similar percentage – around 4.6%.
"For many motorists, this could mean paying £10–£40 more a year depending on their vehicle’s emissions band.
"While 4–5% may not sound huge, it adds up – especially alongside other motoring costs like fuel, insurance, and servicing that have all been rising faster than wages.
"It's also being suggested that the fuel duty freeze could be scrapped in Rachel Reeves' November 26 Autumn Budget – adding even more pain to motorists' wallets."
The expected standard VED rate is £204/year (a £9 rise) next year, with a four to five per cent increase for first-year VED rates, which are charged £110 to £5,490 based on emissions. The expensive car supplement could rise to £445 from £425.
Ms Reeves will deliver her Labour Party Budget next week.
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