The Government has issued a statement about taxes affecting certain cars. Liberal Democrat MP Ben Maguire asked in a written question if the Government had looked at the impact of changes to vehicle excise duty, also known as car tax.

He particularly wanted to know if ministers had looked at the impact of abolishing the car tax exemption for “classic cars”, including classic and heritage vehicles. Vehicles built or registered more than 40 years ago are generally exempt from car tax.

However, changes come in from April 2025 meaning vehicles registered between 1985 and 2001 now pay car tax.

Treasury minister Dan Tomlinson provided a response from the Government. He said: “The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy.

“The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.” The DVLA recently issued a warning reminding drivers that they must register their vehicle for car tax.

The group said in social media: “You must tax your vehicle, even if you don’t have to pay anything. Tax it online at http://gov.uk/dvla/tax.”

You can pay for your car tax as a one-off amount for the year or in monthly instalments. If you don’t pay your car tax, you could be fined as a result.

Your car could also be clamped or impounded if it isn’t taxed and is found parked on a public road.

Chancellor Rachel Reeves will unveil a policy to introduce a 3p per mile tax for EVs when she delivers her November 26 Budget, the Daily Telegraph reported.

The scheme is set to be implemented in 2028 following a consultation, and would cost EV drivers an average of £250 per year, according to the newspaper.

Motoring groups expressed concern that such a tax could put some people off from switching to electric motoring.

The Treasury faces a reduction in revenue from fuel duty as more drivers move from petrol or diesel cars to EVs.

Fuel duty raised just under £25 billion in the 2024/25 financial year.

Successive governments have found the prospect of introducing per-mile charges for driving – sometimes referred to as road pricing – too politically toxic.

The Daily Telegraph said Ms Reeves’s EV scheme will involve users estimating how far they will drive over the following 12 months, and making an extra payment on top of vehicle excise duty (VED).

If they drive more they will need to top up this amount, while some of the money would carry over to the next year if someone clocks up fewer miles.

Journey examples of a 3p per mile fee include £12 between London and Edinburgh, £5 between Cambridge and Bristol, and £2 between Liverpool and Leeds.

EVs’ exemption from VED was removed in April.

A Government spokesperson said: “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles.

“We want a fairer system for all drivers whilst backing the transition to electric vehicles, which is why we have invested £4 billion in support, including grants to cut upfront costs by up to £3,750 per eligible vehicle.

“Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable.”