Rachel Reeves has confirmed a £170 Vehicle Excise Duty (VED) charge for drivers of cars manufactured between 2001 and 2017. The Labour Party Chancellor announced new VED rates for the upcoming year, affecting millions of motorists across the UK.
New VED Bands for Older Cars
VED road tax rates for cars first registered after March 2001 and before April 2017 are divided into 13 bands based on CO2 emissions. Generally, lower emissions mean lower tax. However, since 2025 rule changes, cars emitting below 100g/km no longer qualify for free road tax and now pay £20 annually.
For petrol and diesel cars registered between March 2001 and April 2017, rates remain broadly similar. In 2026, most drivers will pay £200 per year, while those with cars costing over £40,000 when new face up to £640, according to the RAC.
Band D: £170 Rate
Some motorists will pay just £170. Band D covers CO2 emissions of 121-130g/km and sets road users back exactly £170. This represents a £30 reduction from the standard £200 rate for many drivers.
The RAC advises that the easiest way to pay road tax is online. To tax your car, you will need a reference number from one of the following documents: a recent reminder (V11) or 'last chance' warning letter from the DVLA, a vehicle logbook (V5C) in your name, or a green new keeper supplement (V5C/2) from a logbook of a car you have just bought.
The system is straightforward, and payment can be made via debit card, credit card, or direct debit. Note that additional charges may apply for direct debit payments. Alternatively, you can call the DVLA's 24-hour service on 0300 123 4321, though direct debit is not available over the phone.
