Rachel Reeves has confirmed that Vehicle Excise Duty (VED) rates for cars registered between March 2001 and April 2017 will increase in line with inflation. The bands for cars made during this period have risen, with Band L—covering vehicles producing 226 to 255 grams of CO2 per kilometre—now costing £760 annually.
Impact on Everyday Cars
Grant Davidson, Managing Director of TikTok channel @ScottishCarClan, warned that “nothing is safe” and highlighted several common family cars that will be affected. He said: “Here are some of the regular everyday family cars that are set to cost £760 to tax this April.”
Ford Galaxy and Mondeo
Davidson pointed out the Ford Galaxy with a 2.3-litre petrol engine as an example. “Everyone assumes these massive tax prices are only for Lamborghinis and Bentleys, but that's not the case. They are going after cars like this,” he explained. He also mentioned the Ford Mondeo, stating: “If it’s one of the smaller engine ones, you might be okay. But if it's the V6 version, god forbid you want a bit of power, then you’re going to be £760 for a Ford Mondeo.”
Audi TT and Jaguar X-Type
Davidson noted that smaller engines are not exempt either. “The little Audi TT with the 1.8 turbo engine, specifically the ones made in 2006, will also cost £760 to tax for one calendar year.” He added: “How about a Jaguar X-Type? You can pick these up for a couple of thousand pounds, with a nice smooth two-litre engine and automatic gearbox. But from April, you guessed it, you're going to need £760 to tax one of these.”
All-Wheel Drive Vehicles
All-wheel drive cars are also impacted. “Both the Freelander Two with the i6 engine and the Subaru Forester will both be £760 from April onwards,” Davidson warned.
Payment Options
The RAC has warned that while motorists can pay via Direct Debit, doing so will result in higher overall costs. Drivers are advised to check their vehicle's tax band and plan accordingly.
