An automotive expert has urged drivers to brace for higher motoring costs as Chancellor Rachel Reeves prepares to make her first Spring Budget.
While the Labour Party’s first Autumn Budget in 17 years saw a number of measures affecting motorists, some have anticipated that the Chancellor’s next announcement will help to pave the way for a more eco-friendly road system.
Richard Evans, spokesperson for webuyanycar, noted that the statement to the House of Commons will come just days before road tax is set to rise for almost all vehicles on the roads.
He explained: “From April 2025, road tax is expected to increase for every vehicle. The aim is to encourage more lower-emission and electric vehicles on the road. The road tax increase is thought to impact over 19.9 million cars that were manufactured pre-2017.
“This driving law change is due to impact a significant number of drivers. Additionally, for pre-2017 vehicles running on diesel or petrol and emitting over 76g/km of CO2, the first-year tax will double compared to the current rate.”
Announced as a measure in the previous Budget, the DVLA’s tax changes will see the tax bands applied to new models double, with the amount that drivers will need to pay depending on the model’s carbon dioxide emissions.
Electric vehicles will be the cheapest to tax, with an initial payment of £10; however a petrol-powered supermini, like the Volkswagen Polo or Citroen C3, will soon cost £440 for the first year – an increase of £220.
Nevertheless, vehicles that are set to experience the most significant tax rise are those producing more than 255g/km of carbon dioxide, mostly high-performance models or luxury SUVs. From April 1 2025, the tax applied to these models will rise from £2,475 to an eye-watering £5,490.
Richard highlighted that the measure is intended to discourage new car buyers from choosing polluting models, particularly given that all cars made after 2017 pay the same flat rate – no matter how much carbon dioxide they emit.
He added: “Taking steps towards a more eco-friendly road can only be seen positively and as electric vehicles become increasingly popular amongst car buyers, securing 21.6 percent of the market share, these budget announcements will come as no surprise to many.
“For those with vehicles manufactured before 2017, who may be affected by these road tax increases, it could be time to consider swapping your car for a new, more environmentally friendly model. Webuyanycar’s car valuation page will help you find out how much your car is worth helping you get started in purchasing a new vehicle.”
With the DVLA’s changes also set to see the tax exemption on electric vehicles end, a growing number of motoring experts have warned that the following months could see a slump in EV sales.
According to figures published by the Society of Motor Manufacturers and Traders (SMMT), 21,244 electric vehicles were sold in the UK during February 2025 – accounting for 25.3 percent of the market.
Whilst the figures will likely also be strong for March 2025, with the launch of the new number plates helping to increase demand across the automotive sector, the Government has come under pressure to introduce new incentives to encourage drivers to make the switch.