Drivers will wake up to £600 car tax bill under new bands from Labour

Drivers will wake up to £600 car tax bill under new bands from Labour

EV drivers face paying the same flat rate as petrol and diesel motorists from next year, in a major Cost of Living blow.

by · Birmingham Live

Electric car drivers will wake up to £600 more in car tax under new bands from the new Labour Party government. EV drivers face paying the same flat rate as petrol and diesel motorists from next year, in a major Cost of Living blow.

Judith Blake of Leeds voiced concerns that the budget may see motorists pay higher amounts for road tax as fewer vehicles are subject to relief. She explained: "Yes, the noble Lord is absolutely right, the end date for the vehicle tax relief is next year.

"However, as the Lord and everyone else in this chamber will be aware we are approaching the Budget, and I cannot comment on any matter that might be raised in it." Drivers will likely need to pay the same flat rate of £190 per year as drivers of petrol and diesel car drivers.

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And electric cars with a retail price of over £40,000 will also be subject to a £410 yearly charge for the first five years it is on the road. Meanwhile, Viscount John Thurso from the Liberal Democrat party pointed out that while the push for electric vehicles would be pressing, "the mode of taxation would also need to change".

Lord Moylan from the Conservative party queried how the Government thinks people on ordinary incomes will be able to afford the cars especially if they have to take "into account the possibility of road pricing which is on the table".

Blake explained: "We are talking about the new car market, there is an enormous amount of work that needs to be brought together around the second-hand market which also includes the recycling of the key component parts so they don't end up in landfills."

Another question raised to Blake surrounded the use of alternative fuels besides electric such as synthetic fuel and hydrogen power.