New car tax changes will hit drivers in specific regions the hardest, with significant increases expected in 2025
Birmingham: So, it looks like drivers in certain areas are really going to feel the pinch with the new car tax changes coming next year. According to some analysis, folks in these regions could end up paying an average of £689 more in Vehicle Excise Duty (VED).
Now, it’s not just about where you live; it’s also about the type of car you drive. If you’re in an area where people tend to buy higher emission vehicles, you’re likely to see those costs rise even more. The stats come from a look at new vehicle registrations from the first half of the 2024 tax year.
Experts from Go. Compare crunched the numbers and found that if people don’t change their car-buying habits, they’re in for a rude awakening when it comes to costs.
Tom Banks from Go. Compare had a warning: “With the new VED rates, most new car buyers will be shelling out a lot more than they thought in 2025. If you’re in a region where high CO2 cars are popular, you’ll feel the impact the most.”
For instance, drivers in Inner London are looking at a whopping £625.94 increase next year. Windsor and Maidenhead aren’t far behind, with a predicted rise of £538.25, while Surrey residents could see an increase of £514.34. Cheshire East and Fermanagh and Omagh are also in the mix with substantial hikes.
Labour’s proposed reforms are shaking things up, especially for the most polluting cars. If your vehicle emits over 255g/km of CO2, you could be facing first-year fees that double, jumping to £5,490 from the current £2,745.
Tom also shared some tips for those worried about the changes. He suggested looking into low-emission cars that fall into cheaper tax bands. If that’s not an option, maybe consider a nearly new car instead. It gives you that new car vibe without the hefty tax.
The report really highlights how much more drivers can expect to pay in first-year VED rates starting in April 2025, depending on where they live.
