In a revelation that is likely to raise eyebrows among motorists, new data from the UK’s esteemed Office of National Statistics (ONS) has brought to light the existence of five so – called “environmental taxes” that are hitting petrol and diesel drivers hard. At the forefront of these levies is fuel duty, a significant revenue stream for the Labour Party government. This tax, which is imposed on every litre of petrol or diesel pumped into a vehicle’s tank, has been steadily increasing. In 2024 alone, the total earnings from fuel duty reached an astonishing £24.6 billion, highlighting its growing burden on drivers.
While energy taxes constitute the largest portion of revenues within the ONS’ “environmental tax” category, transport – related taxes are also a substantial contributor. According to ONS figures, the motor vehicle duty, commonly known as “road tax,” paid by UK households and businesses amounted to £8.2 billion. Overall, taxes on motor vehicles accounted for nearly £33 billion of the £54.2 billion generated by environmental taxes in 2024. The ONS defines these environmental taxes as those based on a physical unit, such as a litre of petrol or a passenger flight, which are known to have a detrimental impact on the environment. The intention behind these taxes is to discourage activities associated with these units and, in turn, mitigate negative environmental effects.
Reacting to the latest figures, Jack Cousens, the AA’s head of roads policy, expressed his concern, stating that drivers will be “staggered” and that the proportion of the tax burden will come as a shock. Cousens detailed five “stealth taxes” that are specifically targeting road users. These include CO2 – related residents parking permits, diesel – related residents parking permits, diesel – related public parking charges, workplace parking levies, and city or town parking costs where high fees are justified by CO2 considerations. He further called for greater transparency, urging that the large sums of money collected through these taxes be properly accounted for and made clear to the public. Sheena McGuinness, an energy tax expert at RSM UK, advised drivers to brace for future changes. She pointed out that come March 2026, fuel duty is expected to increase further, with the aim of encouraging the transition to electric vehicles (EVs) and achieving the government’s ambitious zero – emission goals. Cousens also sounded a warning about local councils introducing their own series of stealth environmental charges. These new fees, which include parking fees based on CO2 emissions, diesel surcharges, and workplace parking levies, are likely to have a disproportionate impact on low – income households, particularly those relying on older, less environmentally – friendly vehicles.
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