Drivers issued car tax warning as Labour’s attempt to ‘balance books’ to impact thousands

has been criticised after doubling for thousands of drivers in an attempt to “balance the books”. 

New car tax fees will with many drivers paying thousands more to use the road every year. 

Some and owners will pay up to £2,745 more under the widespread overhaul with owners also set to feel the sting for the first time.

The updates are with new tax rates coming into effect from April 1, 2025, 

And specialists at believe the new updates were being introduced as a way to “generate revenue”. 

They stressed the was simply down to a drop in “government income” as motorists ditch combustion vehicles.

Nationwide Vehicle Contracts said: “The UK government is introducing these changes to ensure fairness and generate revenue from road users. 

“Electric vehicles, which are currently exempt from VED, have surged in popularity. While this has supported environmental goals, it has also reduced government income from vehicle taxation. 

“By extending VED to EVs, the government aims to balance the books and prepare for a future where EVs dominate the roads.”

VED car tax rates usually rise in line with Retail Price Index (RPI) inflation each Spring with standard rates set to follow this principle in 2025. 

However, the Government has introduced a more significant update this year with a host of new rules.

Petrol and diesel owners are among the most affected, with first-year VED fees doubling across the board. 

This will see owners of the most polluting cars emitting over 255g/km of CO2 being charged £2,745 more to use the roads. 

Hybrid vehicles will  with prices going from £10 per year to £110 every 12 months. 

Electric vehicles will also be hit with VED fees for the first time ever, with a £10 per annum rate for first-year owners. 

After this, EV owners will be moved onto the standard rate in line with petrol and diesel vehicles.

But there is a concern many could cross the and pay over £400 more.