London, UK – Motorists across the UK are set to face significant vehicle tax increases from April 2025, as part of government plans to raise Vehicle Excise Duty (VED), impacting both new and older vehicle owners. The move has sparked backlash from drivers and industry leaders, with some calling it a major blow to the UK’s automotive sector.
According to GB News, Chancellor Rachel Reeves has been accused of “murdering” the car industry with these tax hikes, which will see VED rates increase across multiple vehicle categories. Critics argue that the increases place additional financial strain on UK drivers, particularly those relying on older vehicles that will be taxed at higher rates.
The Express reported that drivers over 70 may be among those most affected by the tax changes, as many rely on older, less fuel-efficient vehicles that will be subject to higher annual VED rates. With no exemptions planned for pensioners, advocacy groups have warned that the policy unfairly targets elderly drivers who may struggle to afford newer, lower-emission vehicles.
Meanwhile, Bristol Post revealed that some VED rates could nearly double, with electric vehicle owners no longer exempt from taxation. The UK government previously introduced VED exemptions for EVs to encourage adoption, but from April 2025, all EVs will be required to pay tax, starting at £10 for the first year and rising to £165 from the second year onward.
The tax hikes are part of a broader strategy to increase government revenue and transition towards sustainable transport, though industry experts warn that the measures could discourage car ownership and reduce sales in the already struggling automotive sector.
Despite the criticism, the government maintains that VED increases are necessary to fund road infrastructure projects and ensure that all vehicle owners contribute fairly to transportation costs. However, with drivers facing rising fuel prices, insurance premiums, and now higher taxes, many are calling for reconsideration of the tax plan before it takes effect in April.
As the deadline approaches, motorists are being advised to review their VED obligations, with financial analysts suggesting that buying or renewing road tax before April could help drivers avoid immediate price hikes.
