Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt BUDGET 2008: Big penalties for higher-polluting cars amid sweeping VED changes
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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
B101–12035101–11020020
C121–150120111–12030035
D151–165145121–13090095
E166–185170131–140110115115
FOver 186210141–150120125125
GOver 226400151–160150155155
H  161–170175250180
I  171–180205300210
J  181–200260425270
K  201–225300550310
L  226–255415750430
M  Over 255440950455



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