While fuel prices will stick, Vehicle Excise Duty (VED) or, as its better known, road tax, is going up as it traditionally does in line with inflation.
How much road tax will I pay?
How much more you will have to pay beyond your first year will ultimately depend on your car’s CO2 emissions.
As the world edges closer to greener driving, those who have cars emitting fewer CO2 emissions will be rewarded.
Electric vehicles that emit zero CO2 emissions will not pay any road tax, both for the first-year rate and standard rate beyond that.
There are no price hikes for drivers of petrol and most diesel cars that fall into the category of either 1-50g or 51-75g of CO2/km, who will pay £10 and £25 respectively as their first-year rate - this also includes hybrids. Thereafter, there is a £5 increase, taking the standard rate to £155.
The new Government prices mean that there is also a £5 increase for those who drive cars emitting between 76-90g CO2/km, paying £115 as their first-year rate and £155 as their standard rate beyond that.
Drivers hit hardest by the hike in prices are those behind the wheels of cars emitting a massive 255+g/km, who will now pay £2245 for their first year, a £70 increase from last year.
If your car is powered by either biofuel or liquid-petroleum gas, then your road tax will only cost £145 per year, rather than £155.