Van owners face a £375 Vehicle Excise Duty (VED) bill from April 1, 2027, after the Treasury confirmed planned price hikes in its Budget report. The increase, which will affect vans registered on or after March 2001, represents a £15 rise from the current £360 annual fee.
RPI-linked increases confirmed
VED rates rise every year in line with Retail Price Index (RPI) inflation, and 2027 is set to follow the pattern. The Treasury confirmed the planned 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."
Impact on van owners
According to analysis from Pete Barden, early Euro 4 and Euro 5 compliant vans and pre-2011 electric vans are expected to pay £375 to use the roads from April 1, up from the current £360 fee. 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 news comes as another blow to van owners who have already been hit with difficulties in 2026. Rising petrol and diesel costs are putting pressure on tradespeople and those who rely on their vehicles to get to work.
Fuel cost warnings
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.
