Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt BUDGET 2008: Big penalties for higher-polluting cars amid sweeping VED changes
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

BUDGET 2008: Big penalties for higher-polluting cars amid sweeping VED changes

Date: 12 March 2008

Cars running on modern petrol have a lower list price than diesel equivalents

New cars that emit more than 255g/km will be hit by a £950 first year Vehicle Excise Duty bill from 2010 as part of large-scale changes to VED aimed at driving people towards lower-emitting cars.

At the same time, models under 131g/km will be handed a free first year's road tax, while models between 131-160g/km will be charged at the same banded levels as older vehicles with the same emissions figures.

After the first year, all new models will fall into their respective CO2-influenced VED bands.

But before that, six new VED bands will be introduced next year to make a total of 13, including a new M banding for very high polluters emitting more than 255g/km.

At the moment, the top G band covers everything over 225g/km.

Next year's reforms will also see a reduction for all new and existing cars that emit less than 151g/km, but an increase to £440 on the highest polluters, cars over 255g/km. That rises to £455 in 2010.

In an aside, alternatively fuelled cars such as hybrids and LPG models will find their discount gradually eroded to £15 in 2009/10, £10 in 2010/11 and removed completely in favour of a technology-neutral CO2-based system in 2011.

VED changes from 2008
VED bandCO2 (g/km)2008/9 (£)CO2 (g/km) 2009/10 (£)2010/11 new car (£)2010/11 after first year (£)
A-1010Up to 100000
FOver 186210141–150120125125
GOver 226400151–160150155155
H  161–170175250180
I  171–180205300210
J  181–200260425270
K  201–225300550310
L  226–255415750430
M  Over 255440950455