Budget documents state that the Government will uprate standard Vehicle Excise Duty (VED) rates for cars, vans and motorcycles in line with inflation from April 1, 2025.

The Government has announced it will increase standard Vehicle Excise Duty (VED) rates for cars, vans and motorcycles in line with inflation

The Government Budget documents state that the Government will uprate standard Vehicle Excise Duty (VED) rates for cars, vans and motorcycles in line with inflation from April 1, 2025

Rachel Reeves will double the first-year tax rates on new petrol and diesel cars from April in a bid to force more drivers to choose electric vehicles.

Ms Reeves highlighted that the Government will extend the current company car tax rate on EVs until 2028 and make electric vehicle owners pay a different rate of tax than petrol and diesel car owners.

The Chancellor confirmed plans to “increase the differential” between electric cars and combustion models from next Spring.

Labour Party government Chancellor Ms Reeves has maintained the Benefit-in-Kind tax rate for electric cars in a move hoped to help more drivers make the switch.