Motorists across the UK are set to be affected by major driving rule changes in 2025 with seven key updates on their way – from tax fees to parking tweaks.
The biggest overhaul to Vehicle Excise Duty (VED) tax is among the most significant changes with almost all road users set to feel the sting.
However, petrol and diesel owners are likely to be more affected by hefty price hikes and other alterations down the track.
The new year will also see the introduction of other Zero Emissions Vehicle (ZEV) Mandate fees with new number plates also launching in March.
But, some road users could be in line for payouts with the Financial Conduct Authority (FCA) set to wrap up its investigation into car finance.
ZEV Mandate – January 2025
Car firms will be forced to ensure that 28% of overall production comes from zero-emission vehicles from January in the second year of the ZEV Mandate rules.
This is from the 22% target set in year one as officials try to slowly reduce the number of combustion models on the road. However, the Government could be set to soften targets soon after the new year after a consultation was launched.
Manufacturers struggled with the 22% target with many firms discounting their EVs to meet the targets and avoid heavy fines.
Number plate – March 2025
The DVLA’s new number plate changes are launched twice a year in March and September with 2025 no different. The ‘25’ designs will hit the market from March with the ‘75’ plates coming later in the line.
The plates can mean discounts on slightly older models ahead of the launch as dealerships make room for new vehicles.
Vehicle Excise Duty – April 2025
VED fees will rise in line with Retail Price Index (RPI) inflation from April with standard rates up from £190 to £185 per annum.
But, first-year VED charges will massively rise with owners of the most polluting petrol and diesel owners set to pay thousands more. Electric car and hybrid owners will also pay VED for the very first time with exemptions set to come to an end.
Benefit-in-Kind – April 2025
Double cab pick-ups will be treated as company cars instead of private vehicles as part of a major update in Benefit-in-Kind rates.
Currently, all pick-ups are set at a fixed benefit of £3,960 but the update will dramatically increase costs paid by motorists.
However, employers can still find a way around the rule with the Treasury confirming only models ordered after April 2025 will be affected. Those ordering double cab pick-ups before the cut-off will keep paying the current rates until at least 2029.
Car finance investigation – May 2025
The FCA is set to outline the next steps as part of its car finance investigation from May 2025. The regulator is looking into whether drivers may have unknowingly paid a discretionary commission arrangement (DCA) when they took out a policy.
The FCA has hinted that a “mass redress scheme” could be set up with firms likely to pay out tons to road users when the probe is concluded. Money Saving Expert Martin Lewis has even suggested that compensation could be on the same level as the PPI scandal.
London tunnels – spring 2025
The Blackwall Tunnel is set to charge motorists for the first time as part of sweeping changes from Transport of London (TfL).
Charges are being introduced at the Silvertown Tunnel with new rates at the Blackwall Tunnel being introduced to prevent a build-up of congestion using just one route.
Drivers of cars and small vans are set to pay £4 each way during peak hours with commuters likely to feel the sting.
Parking fees – Spring 2025
South Gloucestershire Council will introduce parking fees at 22 council-owned parking bays in the spring.
Motorists will have to pay £1.30 to use a bay for up to two hours with a £3 cost for those stopping for three hours.
Parking in long-stay car parks and spaces will remain £3 for the first four hours – but a new four-to-six-hour tariff will set drivers back £4.
Weekly, monthly and annual parking tickets will also be introduced with Blue Badge changes in the area also on the cards.
