Owners of cars built between 1986 and 2001 are set to be hit with what many are calling a 'very unfair' increase in their Vehicle Excise Duty (VED), commonly known as road tax. The rise, confirmed to take effect from April 2026, is part of the government's annual adjustments to motoring taxes.
What the VED Increase Means for Drivers
The analysis, conducted by motoring expert Pete Barden, reveals the specific financial impact. From April 2026, drivers of cars with engines of 1,549cc or below will see their annual VED bill rise to £230. This represents a £10 increase on the current rate of £220 for the 2025/26 tax year.
This follows an identical £10 rise implemented in April 2025, when bills increased from £210 to £220. The Labour government has framed these ongoing increases as a policy designed to "strengthen incentives" for choosing zero-emission electric vehicles by making the cost difference between electric, hybrid, and traditional internal combustion engine cars more pronounced.
Motorist Backlash Over 'Scaremongering' Tax
The announcement has sparked significant anger among affected drivers, who argue the system is fundamentally flawed. One frustrated motorist stated: "To tax any vehicle on emissions is a lie, a man made lie. The whole human race contribute less than 4% - this is just the government scaremongering you to tax you."
Another driver highlighted the perceived injustice for well-maintained older vehicles: "Very unfair on pre 2001 vehicles. I had a Peugeot 106XND diesel that had such clean emissions MOT testers could not believe it, also more economical than newer models."
The Broader Financial Squeeze on Motorists
Critics of the policy see it as a double blow for ordinary drivers. One comment summed up the sentiment: "They have made it so that you cannot afford to purchase a NEW vehicle and now they are trying to make it so that you cannot afford to keep an OLD vehicle. At some point people need to stand up and say ENOUGH?"
The Chancellor's decision on VED rates is a complex calculation, factoring in elements from general inflation to roads policy and vehicle emissions targets. However, for owners of cars registered between 1986 and 2001, the outcome is straightforward: another annual financial burden, adding to the rising costs of motoring in the UK.
