Andy Burnham’s new £375 car tax rule change – starts in April 2027

Andy Burnham will oversee new Vehicle Excise Duty (VED) car tax updates within a matter of months, with UK road users facing £375 bills. VED rates increase every year in line with Retail Price Index(RPI) inflation, and 2027 looks set to be no different, with Treasury chiefs already confirming planned hikes. Bills are expected to rise across the board for petrol, diesel and electric vehicle owners, with increases in standard VED rates, first-year fees and even for older cars.

However, van owners are also in the firing line, with experts suggesting fees could increase by up to £15 per year. According to analysis from Pete Barden, vans registered on or after March 2001 are tipped to face higher costs when the changes come into effect.

Early Euro 4 and Euro 5 compliant vans and pre-2011 electric vans will pay £140 to use the road, but all other vans will now be charged £375 from April 1, up from the current £360 fee. However, VED inflation for van owners has not changed, with motorists facing a £15 rise earlier this spring when rates increased from £345 to £360 per year.

The Treasury confirmed planned VED price hikes in its Budget report, which was released shortly after John Healey’s statement last week. The report read: “The Government will uprate VED rates for cars, vans and motorcycles in line with the Retail Prices Index (RPI) from April 1, 2027.”

The news comes as another blow to van owners who have already been hit with difficulties in 2026. Rising petrol and diesel costs are putting massive pressure on tradespeople and those who rely on their vehicles to get to work.

Howard Cox, founder of FairFuelUK previously warned that a typical small van driving 20,000 miles per year would likely be facing an additional £360 in fuel fees due to the price hikes.

He warned that a small business running three vans could be paying an additional £1,000 or more extra per year in fuel fees alone.