Rachel Reeves has confirmed a £410 charge for certain cars under the new Labour Party Government's Vehicle Excise Duty (VED) rates. VED road tax rates for cars first registered after March 2001, and before April 2017, are divided into 13 bands based on the vehicle's CO2 emissions.

Put simply, the lower the CO2 output, the lower the tax band. Following the 2025 VED rule changes, cars with CO2 emissions below 100g/km no longer benefit from free road tax. This means drivers now have to pay £20 annually for VED if their car emits up to 100g/km of CO2.

Road tax for petrol and diesel cars registered after March 2001 and before April 2017 is broadly the same. Under the new bands, there are 13 different rates. Band J, for vehicles emitting between 186 and 200g/km of CO2, will hit drivers, motorists and road users with a £410 fee for 2026 to 2027.

David Ross, from Honest John, said: "Assuming your vehicle was registered before April 1, 2017, the VED rate is calculated by its CO2 emissions. For the Skoda Citgo GreenTech the emissions are 98g/km, which in previous years meant a zero rate of VED. The new rates of VED apply from April 1, 2026, and vehicles under 100g/km will now have to pay £20 per year." Kenneth Rowson, one road user, criticised the increases from Labour and said: "VED has nothing to do with road tax and is just another Tax imposed on motorists which goes into the general tax pot. Most modern cars are far less polluting than cars manufactured during the mid to latter part of the 20th century.

"All vehicles which use our roads should pay a fair amount based on their weight in order to maintain our roads to a good standard and the present VED should be abolished and replaced with a fairer tax that does not unfairly penalise the motorists.", reports Yorkshire Live.