March 8, 2024, 10:23 p.m.

Soaring Running Costs UK Motorists Vehicle Excise Duty Fees

The cost of motoring in the UK is on the rise, thanks to changed introduced to the Vehicle Excise Duty, our government's approach keep the tax pounds flowing..

Vehicle owners across the UK are set to face new financial strains, on top of all the other cost of living challenges we face right now, as new Vehicle Excise Duty (VED) rates come into effect on April 1, 2024. These changes, which are apparently driven by concerns over vehicle emissions and the cost of car ownership, will have a significant impact on motorists' finances, which are reaching breaking point, with some families making cut backs compromises on even the basics.

One notable change in the VED system is the increase in charges for vehicles emitting more than 255 g/km of CO2. Which as a car lover, I happen to know is all the good stuff. Your high end performance cars, that have not yet faced the WLTP cutting block. Owners of these high-emission vehicles will face a £40 annual fee increase, with charges rising from £695 to £735 per year. This adjustment falls in line with the governments promise or commitment as they call it, to encouraging greener vehicle choices and reducing harmful emissions, but does not take into account the impact on the average driver.

However, it's also important to note that it's not just high-emission vehicles that will be affected by the VED fee increases. Petrol and diesel models that are more polluting will also face higher charges. Vehicles producing between 226 and 255 g/km of CO2 will see a £35 increase, from £675 to £710. Cars registered before 2017 but after 2001 will have varying increases in VED fees based on their emissions. So they are really going for it on this run.

For owners of "highly polluting" vehicles registered after April 1, 2023, an additional and whooping first-year tax charge of £2,745 will be imposed. This charge aims to discourage the purchase of environmentally harmful vehicles and promote the adoption of cleaner alternatives. However, I am pretty sure (and you can call me a big fat cynic if you really want to) that the government are well aware that a big chunk of the owners of these cars, some spending £60/70k+ are unlikely to switch to your average green mobile, and rather would foot the extra costs.

While the main objective of these changes is to reduce emissions, motorists are advised to consider the overall cost of car ownership due to higher running expenses. Along side this kick in the pants, annual car insurance premiums have risen by over 50%, and fuel costs remain higher than they were two years ago. These factors, along with the VED fee increases, may lead some individuals to explore alternative options, such as temporary insurance cover for borrowing a vehicle and other measures where these increases are a genuine issue.

It's important to note that most vehicle owners will only experience a small increase in VED fees. However, those who recently bought new vehicles may find themselves paying £160 more than if they had purchased the same model just 12 months ago. This serves as a reminder that the cost of car ownership is influenced not only by government policies but also by market forces, which don't seem to favour the average car buyer right now.

Paul Daly, director of InsureDaily.co.uk, recognizes the impact of these changes on motorists. As the director of a leading insurance provider, Daly emphasizes the need for individuals to carefully consider the financial implications of owning a car in this current landscape. Not something I would have thought we would even be speaking about here at LoveCarReviews a few years back. Indeed changing times folks.

Luxury vehicle owners (or "easy targets" as we like to call them these days) will face an additional charge for five years after registration, as the Expensive Car Supplement charge increases to £410, up from £390 in 2023. This measure aims to target high-value vehicles and ensure their owners contribute their "fair share" to the tax system. For anyone based outside of the UK, "fair share" is a term we use here to describe all the effort we put in, and all the benefits the government reap from our efforts. Work a little pay a little, work hard to enjoy the finer things in life, great, more for the powers that be. Bitter much, no sir not I!!

VED fees will rise by about six percent this year, in line with the Retail Price Index (RPI) inflation. This incremental increase reflects the government's commitment to aligning the cost of car ownership with the rising expenses faced by individuals across various sectors.

While the changes in VED fees may appear burdensome to many, it's vital to recognize the underlying narrative behind these measures. The government's focus on reducing emissions and promoting the adoption of cleaner vehicles aligns with the global push for sustainable transportation solutions, and I would imagine that similar draconian measures are being implemented across all countries that subscribe to the notion of cleaner air for the future.

As UK vehicle owners prepare for increased running costs, it becomes even more important to evaluate their vehicle choices and explore alternatives that are both environmentally friendly and financially viable in the long term, or pay the price to continue to enjoy the things we love most as motorists and hard working individuals. The landscape of car ownership is changing fast, and as individuals, I guess we must adapt to these changes to ensure we understand how the government sustainable future for both the environment and their financial well-being will continue to impact our motoring decisions.

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