Motorists set for surprise £600 car tax bill due to new rule from Labour

Some motorists could potentially face a flat annual rate of £190

Electric vehicle (EV) owners could be hit with an additional £600 in car tax under new bands proposed by the Labour Party government. From next year, EV drivers may have to pay the same flat rate as petrol and diesel motorists, marking a significant blow to the cost of living.

Judith Blake from Leeds expressed concerns that the upcoming budget might result in higher road tax payments as fewer vehicles qualify for relief. She stated: "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." Motorists could potentially face a flat annual rate of £190, equivalent to that paid by petrol and diesel car owners.

Furthermore, electric cars priced over £40,000 could also incur a yearly charge of £410 for the first five years on the road. Viscount John Thurso of the Liberal Democrat party highlighted that while the push for electric vehicles is crucial, "the mode of taxation would also need to change", reports Birmingham Live.

Conservative party's Lord Moylan questioned how people with average incomes would afford these cars, especially considering the potential introduction of road pricing.

Blake elaborated on the complexities of the automotive market, saying: "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."

He was also questioned about the potential for alternative fuels beyond electric, such as synthetic fuel and hydrogen power.