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Budget 2023: What it means for van and pick-up owners

David Ross, Editor
Wed, 15 Mar 2023
  • 5p cut in fuel duty to remain
  • No changes to tax system
  • Van tax rises with inflation
  • Extra £200m for road repairs

The Spring Budget announced today by Chancellor of the Exchequer Jeremy Hunt will see an increase in VED (road tax) for many van and pick-up owners.

Van and pick-up tax

While no specific increases were outlined in the statement, a planned increase in van and pick-up tax rates will come into effect on April 1st this year, with a large number of vans impacted by the change in line with inflation.

For vans registered on or after March 1st 2001, Euro 4 and Euro 5 compliant vans stay at the same rate of £140 a year.

But all other vans outside of these bands will see the annual rate increase from £290 to £320 per year.

For older vans registered before March 1st 2001, the rate for 1549cc vans and below increases from £180 to £200 a year, while vans over 1549cc the rate increases from £295 to £325.

The Government announced last year that it would extend the plug-in van and truck grant for an additional two years, until 2024/25.

How much is my road tax?

Fuel duty

There was some good news for van drivers with the announcement that that basic rate of fuel duty would remain unchanged at 52.95p per litre, while the temporary rate reduction of 5p per litre introduced in March 2022 to combat rising wholesale costs would also remain in place for a further 12 months.

 The Chancellor said that the additional 12 months of fuel duty freeze could save the average driver £100 a year, and a £200 saving over the two year period.

Roads

The 2023 Budget also included an increase in local council funding to tackle the problem of potholes, a long-standing issue that has a significant impact on all road users.

An additional £200m would be made available from next year, increasing the total fund to £750m, a welcome increase given the harsh winter that has had a detrimental effect to the nation’s roads.

Ask HJ

What are the VED rules for camper vans?

I purchased a Mercedes-Benz Marco Polo in December 2017. My V5 document has it in taxation class as diesel car but it is in fact a camper van with fitted beds, table and cooker. I understand that many purchasers are now getting it taxed as a motorhome, which would be more accurate. What are the differences and what does this mean financially? On another point, many seaside resorts are stating that motorhomes are not allowed to park in many places. As my vehicle is registered as a car am I correct in thinking it is ok for me to park in these non-motorhome parking spaces?
Camper vans registered between 2017 and 2020 have VED applied in one of two ways. If it is an M1SP category camper van - which most campers are - and has a CO2 emissions figure on its type approval certificate, then you will pay a flat £155 VED rate plus an extra £335 a year if the list price was over £40k. The 'premium car tax' however is applicable for five years (from the second year the van is taxed), which means the VED will fall to a flat £155 when the vehicle is seven years old. If your camper van is not in the M1SP category or does not have its CO2 emissions on the type approval certificate, then VED is applied by the same rules for older vehicles (£280 a year) although there will be very few that do. In regards to parking, you'll need to check with the local authority on what their definition of a motorhome is. In my experience, camper vans are usually ok. But the exact rules for parking are usually detailed on a sign close to the place you want to park.
Answered by Dan Powell
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Ask HJ

Am I paying too much road tax for my 2009 Ford Fiesta van?

I've had a Ford Fiesta base van (1.4-litre TDCi) since 2017, but my road tax seems quite hefty? I annually pay around £265 to £270. Am I paying too much?
The road tax classification will depend on the age of the van and the Euro emission rating of the engine. If it's Euro5 it will be £140 a year. If it's Euro4 then you'll pay £170. The Euro rating should be listed on the V5C logbook. For more information on van road tax, see: https://vans.honestjohn.co.uk/van-tax/van-and-pick-up-road-tax-ved-rates/
Answered by Dan Powell
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