The change to VED to all vehicles from 2025 is not a change in banding costs, ie it's changing zero to £190, that I would be bad enough,but hard to digest.
The new charge has required a change in existing law. Both for EV and low emission vehicles, so not just a price rise. Hence why I think it's abysmal.....
But please note, this was not a Labour policy, but a Conservative one from 2022.
This excert is for the actual LAW change from gov.uk.
Note that the exemption was definitive not time constrained.
Current law
Paragraph 20G of Schedule 2 to the Vehicle Excise & Registration Act (VERA) 1994 exempts electric vehicles from the requirement to pay Vehicle Excise Duty.
Proposed revisions
Schedule 2 of VERA 1994 will be amended so that the electrically propelled vehicle exemption no longer applies to cars, vans and motorcycles. The exemption for cars with low CO2 emissions will also be omitted. Schedule 1 will be amended so that electric cars, vans and motorcycles are liable to pay the same rates as petrol and diesel vehicles. Schedule 1 will also be amended so that new electric cars will be eligible to pay the higher rate of duty, commonly known as the expensive car supplement.
The Graduated Vehicle Excise Duty (Prescribed Types of Fuel) Regulations 2001 will also be revoked so that hybrid and alternative fuel vehicles are no longer eligible for the reduced rate.
Summary of impacts
Exchequer impact (£m)
| 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 |
|---|
| 0 | 0 | 0 | +515 | +985 | +1595 |
These figures are set out in table 5.1 of Autumn Statement 2022 and have been certified by the Office for Budget Responsibility.
