Vehicle Excise Duty (VED) rates for cars, vans and motorcycles will rise in line with the Retail Prices Index (RPI) from April 1, 2027, with many van owners facing an annual charge of £375. The increase, confirmed in the Treasury's Budget report, will affect petrol, diesel and electric vehicle owners across the board.
Van owners face £375 annual charge
According to analysis from Pete Barden, vans registered on or after March 2001 are anticipated to face steeper costs when the changes take 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.
Van owners have already faced a £15 rise earlier this spring when rates climbed from £345 to £360 per year. VED inflation for van owners has remained unchanged, with the Treasury confirming the planned increases in its Budget report, published shortly after John Healey's statement last week.
Treasury confirms RPI-linked increase
The report stated: "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 represents yet another blow for van owners who have already faced a challenging start to 2026. Soaring petrol and diesel prices are placing enormous strain on tradespeople and those who depend on their vehicles to earn a living.
Fuel costs add to financial pressure
Howard Cox, founder of FairFuelUK, previously cautioned that a typical small van covering 20,000 miles per year would likely face an additional £360 in fuel costs as a result of the price increases. He further warned that a small business operating three vans could be forking out an extra £1,000 or more annually in fuel expenditure alone.
