Andy Burnham’s new £795 car tax rule change – starts in April 2027. hyn

Andy Burnham's new £825 car tax rule change - starts in April 2027 | Express.co.uk

When your own adviser is calling you out in public as reckless and negligent, it’s time to listen. But Andy Burnham won’t. We’re heading for disaster.

Burnham-Haldane-reckless

Andy Burnham’s economic plan has been savaged by his own adviser (Image: Getty)

As PM, you expect the opposition to criticise you. You expect backbenchers to moan, newspaper critics to rant and the public to express their displeasure. What you don’t expect is the man you called in to give you economic advice turning round and warning that you’re about to give the nation an economic “heart attack”. But that is exactly what Burnham’s own adviser Andy Haldane has just said, in an article in The Independent. It follows a similar warning by the same man in the Financial Times a few weeks ago. Burnham must have driven him nuts

Haldane is a man to be respected. He was chief economist at the Bank of England, and the only one to break with the herd mentality that’s run riot under BoE governor Andrew Bailey. He’s now president of the British Chambers of Commerce and until recently, one of three wise men advising Burnham on his economic plans. He was offered a formal Number 10 role, but turned it down. Very wise. A second, Lord Jim O’Neill, formerly of Goldman Sachs, has also turned on the PM. The third is wisely keeping his head down.

It’s a terrible look, isn’t it? Burnham appoints three friendly experts to advise him on how to revive the UK economy, and two of them are savaging his plans in public. And today came the most savage attack of all. Haldane said the PM’s handling of the British economy is so “reckless” that he would be struck off for negligence if he were a medical doctor. Haldane warned that Burnham’s failure to reduce Britain’s borrowing costs in the Budget could trigger an economic “heart attack”. Not a bad cough, bout of flu or broken toenail, but a heart attack. Pretty extreme. But these are extreme times.

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Haldane says Britain’s finances are “on a knife-edge”, with most of the lights on the fiscal dashboard flashing red. He also delivered the ultimate insult by comparing Burnham’s approach to Liz Truss’s disastrous mini-Budget, warning that his policies could cause similar havoc and “swamp the poor”.

He dismissed the idea that the Government’s plans were somehow “prudent nor progressive”. Britain’s fiscal position, he warned, was more precarious than at any time in the past half-century.

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Ahead of the Budget, Haldane urged Burnham and Chancellor John Healey to shun tax hikes and balance the books, but of course they didn’t listen. Instead, they took the easy option and ran down our fiscal reserves, rather than restoring them. The Government needed to find between £30billion and £40billion, he argued, but ducked all the difficult decisions in Healey’s so-called “do no harm” Budget.

Continuing the medical analogy, Haldane said Britain’s financial blood pressure was sky-high and requires serious intervention. Instead, Burnham’s Government had offered “homeopathic remedies”, including higher deficits, debts, taxes and spending. “A doctor prescribing this course of treatment would probably be struck off,” he concluded.

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It’s absolutely brutal. And it’s everything I’ve been screaming about for the last two-and-a-half years, under both Rachel Reeves and now John Healey. But will Burnham listen? Of course not. He’s got to keep the backbenches happy and his poll ratings high by pretending we’re on the mend, when we’re not.

We’re on the sick list, and Burnham is administering all the wrong medicine. This can only end one way.

Andy Burnham new £390 car tax rule explained as April 2027 warning issued - Yorkshire Live

Andy Burnham’s New £795 Car Tax Rule Change – What UK Motorists Need to Know from April 2027

Millions of motorists across the United Kingdom are facing another increase in vehicle taxation from April 2027, following the Government’s confirmation that Vehicle Excise Duty (VED) rates will rise in line with inflation. The changes will affect drivers of petrol, diesel and electric vehicles, with some owners of older, high-emission cars facing annual road tax bills of almost £800. One of the most significant changes concerns vehicles producing between 226g and 255g of carbon dioxide per kilometre, which will face an annual VED charge of £795 from 1 April 2027. Meanwhile, the most polluting vehicles, producing more than 255g of CO2 per kilometre, will face an annual charge of £825. The changes have attracted considerable attention among motorists who are already struggling with the rising cost of fuel, insurance, repairs and household expenses.

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The new rates form part of the Government’s annual adjustment of Vehicle Excise Duty, which is designed to reflect changes in the Retail Prices Index (RPI). According to the Treasury, VED rates for cars, vans and motorcycles will increase in line with RPI inflation from 1 April 2027. This means that motorists should prepare for higher annual vehicle taxation even if they continue driving the same vehicle and do not purchase a new car. Although the increases are officially linked to inflation rather than a completely new taxation system, they will nevertheless place additional financial pressure on certain categories of drivers.

The £795 figure particularly affects owners of older vehicles first registered between 1 March 2001 and 31 March 2017. Under the existing taxation system, these vehicles are divided into different bands according to their official carbon dioxide emissions. Cars producing between 226g and 255g of CO2 per kilometre are classified in Band L, while those producing more than 255g per kilometre fall into Band M. For the 2026/27 tax year, drivers in Band L pay £760 annually, while Band M vehicles are charged £790. From April 2027, these amounts will rise to £795 and £825 respectively.

For some motorists, an increase of £35 a year may appear relatively modest. However, the situation becomes more difficult when vehicle taxation is considered alongside other motoring expenses. Many owners of older vehicles have chosen to keep their cars because purchasing a replacement would require a substantial financial commitment. Used-car prices, financing costs, insurance premiums and repair bills can make replacing an existing vehicle extremely expensive. Consequently, an annual road tax increase may create additional difficulties for households that depend on older cars for commuting, shopping, medical appointments and family responsibilities.

The changes will also affect newer vehicles. Cars first registered on or after 1 April 2017 generally pay a standard annual VED rate rather than being placed in the older emissions-based bands. Under the published 2027/28 rates, the standard charge will increase from £200 to £210. Drivers purchasing new vehicles may also face different first-year charges depending on the vehicle’s emissions. These first-year rates can be considerably higher for cars producing large quantities of carbon dioxide.

Electric vehicle owners should also be aware that the tax arrangements have changed. Electric cars are no longer universally exempt from Vehicle Excise Duty. Under the current system, electric vehicles are subject to annual VED charges, although their first-year rates and certain other provisions differ from those applying to petrol and diesel vehicles. As a result, motorists should not assume that choosing an electric car automatically means avoiding road tax.

One of the biggest concerns surrounding the latest increase involves older vehicles that are not yet eligible for historic vehicle tax exemption. Under current rules, a vehicle generally becomes eligible for historic vehicle status when it was manufactured more than 40 years ago, subject to the relevant requirements. This means that many cars manufactured in the 2000s remain subject to annual road tax even if they are well maintained, have relatively low mileage and are worth considerably less than their original purchase price.

Some motoring campaigners have therefore called on the Government to introduce a reduced VED rate for vehicles between 20 and 39 years old. They argue that owners of older cars should not face disproportionately high annual tax bills simply because their vehicles fall into high-emission categories. Supporters of this proposal also point out that maintaining an existing vehicle may sometimes be environmentally preferable to manufacturing and purchasing a completely new replacement, particularly when the existing car is reliable and used relatively infrequently.

However, the Government must also consider environmental objectives when designing vehicle taxation policy. Carbon dioxide emissions contribute to climate change, and taxation based partly on vehicle emissions is intended to encourage motorists to choose more fuel-efficient and lower-emission vehicles. From this perspective, charging higher rates for vehicles that produce more pollution is consistent with the principle that motorists should contribute according to the environmental impact of their vehicles. The challenge is to balance environmental objectives with the financial circumstances of people who cannot afford to replace their cars.

Andy Burnham’s Government will therefore face questions about whether the current taxation arrangements provide sufficient protection for lower-income motorists and people who depend on older vehicles. The increase is not a special £795 tax introduced personally by Burnham. It is part of the Government’s published inflation-linked VED adjustment, announced through the Treasury’s budgetary process. Nevertheless, the political responsibility for explaining and implementing the policy rests with the Government.

Motorists should take several practical steps before April 2027. First, they should check the registration date and emissions category of their vehicle because the amount of tax payable depends on these details. Secondly, they should check their current VED payment and establish whether the new rate will affect them. Thirdly, drivers considering purchasing another vehicle should investigate the applicable annual road tax and first-year charges before making a decision. The official DVLA vehicle enquiry service and the GOV.UK vehicle tax information pages provide useful information about individual vehicles and their taxation requirements.

It is also important to remember that Vehicle Excise Duty is separate from fuel duty, insurance premiums and other motoring costs. Paying road tax does not remove the requirement to maintain valid motor insurance or ensure that a vehicle has a valid MOT certificate where required. Drivers must continue to meet all legal obligations associated with owning and using a vehicle on public roads.

Ultimately, the April 2027 VED changes highlight the growing financial pressures facing British motorists. While the Government argues that inflation-linked adjustments are necessary to maintain the real value of taxation revenue and support public services, many drivers will see the increases as another expense added to an already expensive way of life. Owners of older, high-emission vehicles will be particularly affected, with some facing annual bills of £795 or £825. The wider debate is therefore not simply about how much motorists should pay in road tax, but also about fairness, environmental responsibility and the affordability of private transport. As the new rates approach, motorists will need clear information about their individual liabilities, while policymakers will face continuing questions about how to balance environmental targets with the everyday financial realities of millions of British households.

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