Motorists living in this one area are set to pay more than anywhere else when new car tax changes come into effect this year, according to analysis. Next April, under the new Vehicle Excise Duty (VED) changes, drivers in this region could fork out an average of £689 more.
Even though your postcode doesn’t directly hike up VED rates, the make and model of car locals tend to buy do. Areas with a penchant for higher emission vehicles are likely to feel the pinch more sharply. Stats lifting the lid on this come from a close look at new private vehicle registrations over the first six months of the 2024 tax year.
And when Go. Compare experts ran the numbers against both current and incoming VED rates, but the future looked pricey if people didn’t switch up their car shopping habits.
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Tom Banks from Go. Compare warned: “The increased VED rates mean most new car buyers will be paying a lot more than they were expecting in 2025. If you live in a region where buyers tend to go for high CO2 cars, then drivers in your area will be the most impacted by the rise.”
Motorists in Inner London are facing a massive hike in their costs as they could be expected to fork out an extra £625.94 from next year following significant changes. Those living in Windsor and Maidenhead aren’t far behind, with a predicted increase of £538.25 on the cards, while Surrey residents could see an uplift of £514.34, Cheshire East dwellers by £510.89, and individuals in Fermanagh and Omagh by a substantial £502.25.
Labour’s proposed reforms are set to dramatically raise first-year Vehicle Excise Duty (VED) rates for the most polluting cars, marking a radical shift in taxation policies. Under the new scheme, high-emission vehicles emitting over 255g/km of CO2 will face first-year fees doubling, costing motorists a steep £5,490 per year compared to the current charge of £2,745.
Offering his advice, Tom suggested: “If you’re worried about how the changes will affect you, there are ways to minimise the impact on your finances.”
He recommended: “For instance, consider purchasing a low-emissions car that will place your vehicle in the cheaper tax bands. If you can’t purchase a suitable hybrid or EV, you could opt for a nearly new motor instead.”
He added: “This gives you that new car feeling for a fraction of the price, and will allow you to dodge the increased tax.”
The report highlighted the additional cost expected for first-year VED rates from April 2025 by local authority area.