According to car insurance specialists and breakdown experts at the RAC, motorists in this category face a ‘ten-fold’ rise.
They confirmed the rise would apply to many hybrid cars which are fitted with both an electric car battery and a combustion engine.
They explained: “The biggest news is the ten-fold increase in first-year car tax rates for cars emitting between 1-50g/km of CO2, which includes hybrids.
“These will increase from the current rate of £10 for petrol and diesel cars (or zero for hybrids) to £110. The vast majority of plug-in hybrid cars fall into this band.
“Rates for new cars emitting between 51-75g/km of CO2 will increase from £30 (or £20 for hybrids) to £135.”
Labour confirmed first-year VED costs would increase in 2025 as part of Chancellor Rachel Reeves’ Autumn Budget statement.
HM Revenue and Customs previously admitted the rides would “widen the difference” between petrol, diesel and electric cars.
They also stressed the move would bring hybrid vehicles “closer to higher emitting cars”.
They commented: “Vehicle Excise Duty first-year rates are paid for the first year of a car’s lifecycle, at the point of registration, and vary based on emissions.
“From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars.
“From 1 April 2025, zero-emission cars will pay the lowest first-year rate. Rates for cars with CO2 emissions of 1 to 50 grams per kilometre and 51 to 75 grams per kilometre, including hybrid vehicles, will increase to bring them closer to higher emitting cars.”
