Skip advert
Advertisement

Government looks at two-tier road tax system

The Government is considering a two-tier VED, with those driving only on smaller roads paying less

Two-tier-tax-plans

Government officials are considering a new ‘two-tier’ Vehicle Excise Duty (VED) that could see motorists who use major A-roads and motorways paying a higher rate than those who only use smaller roads.

Cameras using number plate recognition technology would then be used to make sure drivers using motorways have paid the higher rate.

Advertisement - Article continues below

The proposal is one of several options currently being considered by ministers as part of a Government review of transport funding, which follows concerns that increased fuel efficiency could lead to a decline in revenue for the treasury.

VED currently brings in around £6billion a year, but this is expected to fall dramatically as motorists switch to more efficient cars which qualify for lower rates.

However, a number of motoring groups, including the AA, have warned that this kind of system could lead to some drivers being priced off major roads, which would cause more congestion and slower journeys.

Other proposals currently being considered include the introduction of road tolls controlled by private companies, as well as replacing the annual tax with a one-off, up-front sales tax on all new cars.

Skip advert
Advertisement
Skip advert
Advertisement

Most Popular

Can you park over a dropped kerb? Blocked driveways, rights and the law explained
Dropped kerb - header image

Can you park over a dropped kerb? Blocked driveways, rights and the law explained

A dropped kerb allows vehicles to legally cross the pavement between the road and a private driveway or parking space, here’s everything you need to k…
Tips & advice
22 Jun 2026
VW ID. Buzz gets new Good-Night package for camper van capability
VW ID. Buzz with the Good-Night package - front 3/4 open with furniture

VW ID. Buzz gets new Good-Night package for camper van capability

We’ve been waiting for VW to transform the ID. Buzz into a modern camper
News
24 Jun 2026
Major Audi A3 updates and price cut are part of second facelift in two years
Updated Audi A3 - blue dynamic front 3/4

Major Audi A3 updates and price cut are part of second facelift in two years

The new Audi A3 will be available from September, with a choice of petrol, diesel or plug-in hybrid power, as well as sportier S3 and RS 3 editions
News
23 Jun 2026

Find a car with the experts