Andy Wood, spokesperson for Tax Natives points out the move is likely to have the largest impact on families and small businesses in a major blow.

He said: “If you drive a high-emission vehicle, brace yourself for a big hit to your wallet. Starting in 2028/29, VED rates for vehicles emitting over 76g/km of CO2 will double. 

“The worst offenders – cars with emissions over 255g/km – will see their annual tax bill leap from £2,745 to a staggering £5,490. 

“This isn’t just a money issue; it’s a clear push from the Government to encourage drivers to switch to greener alternatives. 

“For families or small businesses relying on older, high-emission vehicles, this could mean tough decisions ahead.”

Despite the hefty increases, petrol and diesel owners will revert back to the standard VED charge after just one year on the roads. 

This will be set at £195 per year, up £5 from the current £190 per annum rare.

However, electric car owners are given a major boost with first-year VED rates to sit at just £10. 

Confirming the new first-year rates, HM Revenue and Customs said they hope the move will "increase the incentives” towards new zero-emission cars at the point of purchase.

They added: “Vehicle Excise Duty first-year rates are paid for the first year of a car’s lifecycle, at the point of registration, and vary based on emissions. 

“From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars.”