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I took notice recently that the monthly direct debits I have set-up for my various cars have all risen by a few pounds. I somehow missed the recent Spring Budget in March where increased Vehicle Excise Duty (VED) rates had sneaked through the back door so to speak.
Rates for cars in the pre-2001 and 2001-2017 brackets seem to have had a few band price increases.
My main gripe is with the oldest car I have on the road – a 1998 Ford Focus 1.8, which was high enough at £25.81 per month, but now... it has increased by £2.62 to £28.43 per direct debit. That equals an extra £31.44 per annum. Total outlay for a year’s VED is £341.16 (you pay a little more via direct debit).
Pre-2001 tax rates for over 1549cc engines have risen from £280 in 2021 to £295 in 2022 and this year £325. That’s an increase of £45 in three years.
What with potential emission zone bans for older vehicles and the everincreasing VED rates, I can’t see many surviving into‘classic’ status like they once did – basically, they are being taxed off the road. Most will be crushed if scrap metal prices remain high – though that seems to be a target for this Government – get older vehicles off our roads.
The highest band rate (M) for cars that have a CO2 emissions output of over 255g/km has risen to £695 per annum. Wow, nearly £700 to keep what is probably a vehicle over 10-years-old legal. Vehicles in Bands L and M that were registered new prior to March 23rd 2006 fall back into Band K (which is good if you are the owner as that is ‘only’ £395 – up from £360 last year), but for those registered after March 23rd 2006, you pay top price – £675 and £695 respectively. These ‘newer’ cars will effectively be taxed off the road, with second-hand values plummeting to rock bottom.
