Motor Vehicles: Excise Duties

(asked on 25th February 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate her Department has made of the additional annual cost to motorists of introducing a weight-based Vehicle Excise Duty system for cars weighing over (a) 1,600kg, (b) 2,000kg, and (c) 2,400kg.


Answered by
Dan Tomlinson Portrait
Dan Tomlinson
Exchequer Secretary (HM Treasury)
This question was answered on 2nd March 2026

Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, motorcycles and heavy goods vehicles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.

The Government annually reviews the rates and thresholds of taxes and reliefs at fiscal events, and in doing so considers a wide range of factors including complexity, value for money, and administrative burdens for tax payers. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.

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