First-year tax rates for petrol, diesel and hybrid cars set to rise following Budget

EMBARGOED TO 0001 TUESDAY SEPTEMBER 3 Undated file photo of traffic on the M3 motorway. Chancellor Rachel Reeves is being urged to impose a pay-per-mile scheme on UK drivers to avoid a “black hole” from lost fuel duty revenue. Public transport charity Campaign for Better Transport (CBT) issued the plea, claiming it would have public support, proposing that drivers of zero emission vehicles (ZEVs), such as electric cars, should be charged based on how far they travel. Issue date: Tuesday September 3, 2024. - (PA Wire)

Drivers of new petrol, diesel and hybrid vehicles are set to face higher first-year tax rates following today’s Budget.

In an attempt to drive consumers towards electric vehicles while widening the gap between ‘higher polluting’ vehicles and EVs, the Government will be increasing the first-year Vehicle Excise Duty (VED) for many new cars.