Measure

Vehicle Excise Duty (VED) uprating and Heavy Goods Vehicles VED freeze

The measure

The government will uprate Vehicle Excise Duty (VED) rates for cars, vans and motorcycles in line with RPI. 

VED rates for Heavy Goods Vehicles (HGVs) will remain frozen.

 

Who will be affected?

Owners and users of cars, vans, motorcycles and HGVs.

 

When will the measure come into effect?

VED for all vehicles other than HGVs will increase from 1 April 2023.  

VED for HGVs will remain frozen for 2023-24. 

Our view

This measure was anticipated following recent increases in VED, including the application of VED on electric vehicles announced in the 2022 autumn budget, and will increase the cost of owning and using a vehicle in the UK.