Motorists in one Vehicle Excise Duty (VED) band will pay £465 from April 2027, a £20 increase, under changes overseen by Andy Burnham. The Treasury confirmed the new VED updates will be introduced from next April, shortly after John Healey's Autumn Budget statement.
Band K increase details
VED tends to rise in line with Retail Price Index (RPI) inflation each year, and 2027 is set to follow that pattern. The bills are paid by almost all petrol, diesel and electric car owners, with prices based on the age of vehicles and overall emissions.
Cars registered between 2001 and 2017 are placed into one of 13 VED car tax bands, with owners in Band K facing increases. These cars emit between 201 and 225g/km of CO2 and tend to include performance and sports cars, large SUVs and 4x4s as well as some luxury saloons.
Rising costs over recent years
According to analysis from Pete Barden, motorists falling into this tax band should expect to pay £465 to get behind the wheel from April 2027, a £20 rise from the current £445 fee. This is a slightly higher increase than road users faced earlier this year, with Band K costs jumping from £430 to £445 from April 2026.
Fees have continued to steadily rise, with motorists paying £415 between 2024 and 2025 and £395 a year during the 2023/24 tax year. Bills were as low as £360 per annum between 2022 and 2023.
Impact on drivers
The news could be a hefty blow to cash-strapped road users, with motorists already battling rising fuel bills in recent months. VED hikes will impact drivers across the board, with an expectation that standard rates for cars registered after 2017 will jump from £200 to £210 per year.
However, first-year owners are set to face the biggest financial increase, with hundreds of pounds set to be added to the running costs for owners of brand new models.
In an update published after the Autumn budget, the Treasury said: “The government will uprate VED rates for cars, vans and motorcycles in line with the Retail Prices Index (RPI) from 1 April 2027.”
