New research reveals a noticeable drop in daily van sales in the wake of the Autumn Budget, where Chancellor Rachel Reeves announced significant car tax reforms. The used van market experienced a nearly 12 percent decline following the budget announcement, prompting experts to express concerns about the sector’s health.
Analysis of the data, exclusively obtained by GB News, indicates that 2,165 fewer vans were sold in the month following the October 30 budget announcement compared to the prior month. Daily van sales dropped from an average of 627 to 552, a decrease of 75 vehicles per day.
The figures reflect a decline in activity after Reeves introduced the new car tax changes that are set to take effect in April. Some vehicle owners could face charges as high as £6,000 annually. Data showed that 18,174 used vans were sold across the UK between October 1 and 29. However, in the period from October 31 to November 30, following the tax hike announcements, the figure fell to 16,009.
Alastair Campbell, from Marketcheck UK, commented on the figures, stating they “could indicate a decline in confidence across the economy, particularly in trades, following the Autumn Budget.” He highlighted that the analysis of used van sales provides significant insights into economic sentiment among trade businesses, which appeared to be particularly sensitive to policy changes affecting vehicles costs. Campbell noted that “whether this is as a result of decreased capital available to expand their businesses, or a lack of confidence due to contractions in other sectors is unclear, but it is certainly a concern.”
The forthcoming tax adjustments, set to begin in April, will reflect the Retail Price Index and apply to all cars, vans, and motorcycles. These changes will impact all vehicle owners, including those with electric vehicles, who will be subject to car tax for the first time.
First-year rates for new cars will vary. Electric cars will be charged the lowest rate, £10, until 2029-30, while hybrids and cars emitting between one and 50g/km of CO2 will see rates increase to £110. Vehicles emitting 51-75g/km of CO2, including hybrids, will face charges of £130. Rates for all other cars emitting 76g/km of CO2 and above will double from current levels. Additionally, as of April 2025, double-cab pick-up vehicles with a payload of one tonne or more will be reclassified and taxed as cars.
