Andy Burnham’s new car tax rules will cripple drivers – he’s stamping on our necks

Detailed summary

Andy Burnham and John Healey will raid motorists wallets in April with new Vehicle Excise Duty (VED) car tax hikes already confirmed by the Treasury. This was, of course, expected…

Andy Burnham and John Healey will raid motorists wallets in April with new Vehicle Excise Duty (VED) car tax hikes already confirmed by the Treasury. This was, of course, expected, with VED prices rising every year with inflation regardless of what party holds the keys to Downing Street. The annual car tax rise is just one of those increases that is baked into the calendar each April. It almost passes by the Budget without any mention.

Rachel Reeves changed that in 2024 when she doubled first-year VED tax bills, with owners of brand new cars facing bills of over £5,000 per year to use the road. Mr Burnham and Mr Healey haven't quite matched that this time, with the 2027 rise simply an inflationary increase linked to the Retail Price Index (RPI).

But this isn’t a normal year. Motorists have taken an absolute battering at the pumps this year, with petrol and diesel fuel costs soaring due to disruption in the Middle East. Diesel is still hovering close to £2 per litre. Quite simply, drivers already struggling to stay afloat and putting even more onto the annual bill could be the final nail in the coffin for many.

Recent data from Tempcover, pulled from a survey of 2,000 UK adults, found that 40% of UK drivers have already reduced the number of vehicles on their driveway. One third (32%) said they no longer drive enough to justify owning more than one car as ownership costs bite.

Earlier this year, Turo's 2026 Car Ownership Index found that almost one quarter of British drivers (23%) will no longer own cars within the next five years.

The survey of 2,009 UK adults found that one-third of those planning to give up driving blamed high petrol and diesel fuel costs.

If motorists are already struggling, surely adding more to the total bill will be absolutely devastating. Andy Burnham promised to focus on the cost of living. The Prime Minister needs to seriously reconsider any increase in motoring fees, even if inflationary.

Experts have suggested that petrol and diesel fees are on…

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