Andy Burnham’s new £825 car tax rule change - starts in April 2027

Andy Burnham’s new £825 car tax rule change - starts in April 2027 Andy Burnham will oversee new updates to Vehicle Excise Duty (VED) car tax bills from next year, with road users set to pay more to use the roads. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments By Luke Chillingsworth , Cars Reporter 08:40, Tue, Nov 10, 2026 Updated: 11:55, Tue, Nov 10, 2026 Car tax: DVLA issues warning to drivers on tax avoidance Andy Burnham will introduce new car tax updates from 2027, with motorists expected to pay £825 to get behind the wheel.

The Treasury has confirmed that Vehicle Excise Duty (VED) car tax updates will come into effect from next spring as part of annual inflationary rises. VED charges increase in line with Retail Price Index (RPI) inflation every 12 months and 2027 is set to be no different, with fees increasing again from April. Since the news of VED updates has emerged , experts have been quick to reveal what it all means for road users with Pete Barden looking at potential price rises.

VED is a mandatory charge paid by almost all petrol, diesel and electric car owners with motorists paying different charges based on the age of their vehicle and its overall emissions. Article continues below ADVERTISEMENT According to Pete Barden, the standard VED rate paid by all cars registered after 2017 will increase from £200 to £210 per year. First-year VED fees are also set to increase, with bills rising as high as £5,950 per annum in a blow to cash-strapped road users.

However, slightly older cars are also affected, with models registered between 2001 and 2017 split into one of 13 VED tax bands. These are calculated based on overall pollution levels, with the dirtiest cars emitting over 255g/km of CO2 paying the most. These road users are currently placed into band M and currently pay £790 per year to get behind the wheel, although Pete Barden has suggested that this will rise to £825 next year in a £35 increase.

Article continues below ADVERTISEMENT Andy Burnham’s new £390 car tax rule change - starts in April 2027 Police settle debate on paying with mobile phone at drive-thru — £200 fine and 6 points Andy Burnham will oversee new VED price rises from 2027 (Image: Getty) VED rates will rise from next April (Image: Getty) Get the latest politics news - straight from our team in Westminster and more I would like to receive emails from the Daily Express featuring our latest products, services, offers, and promotions from across the Reach Plc family .

Subscribe Invalid email You agree you are 18 or over. We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you. You can unsubscribe at any time. More Info . This is a slightly higher rise than in previous years, with road was in band M enjoying a £30 increase last time out. Motorists paid £760 in the 2025/26 tax year, with bills sitting at £735 per annum per year over 2024/25.

Article continues below ADVERTISEMENT The Treasury confirmed VED rates would rise after Mr Healey’s Autumn Budget in October. They said: “The government will uprate VED rates for cars, vans and motorcycles in line with the Retail Prices Index (RPI) from 1 April 2027.” See more of the stories you love from Daily Express and find us easily in Google by making us a Preferred Source. Free and easy-to-do, just click here to activate or add us as Preferred Source in your Google search settings.

Andy Burnham Vehicle Excise Duty (VED) Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments