Rachel Reeves could be lining up another major car tax grab at the Autumn Budget that may affect hundreds of thousands of motorists across the UK. Fuel duty rises, Vehicle Excise Duty (VED) increases and even a pay-per-mile charge are all rumoured for November 26,

But none of these charges will make motorists’ blood boil in quite the same way as a possible classic car tax fee. Shadow Transport Secretary Richard Holden has suggested Labour could be looking to change the 40-year historic vehicle tax exemption at the next Budget in a bid to raise £107million. The rolling exemption means cars registered over 40 years ago are exempt from fees, with vehicles built before April 1985 no longer required to pay to use the roads as of 2025.

Vehicles built before 1985 are exempt from tax fees (Image: Getty)

The rule was introduced under the Conservatives but has been maintained by Labour up until now. However, Rachel Reeves‘ desperate attempt to fill her rumoured £50billion black hole could see the loophole axed.

Mr Holden explained: “One of my big concerns is what’s going to happen with the 40-year-rule and things like that with the Budget coming up. And I think my priority at the moment is to make sure that we don’t end up seeing a tax grab on the sector at the Budget. That’s my number one priority for the classic car sector because I think the danger is that they are looking right across transport.”

Historic vehicles are loved in the UK. Growing up, I spent many happy afternoons in awe at groegous Porsch 911s, Jaguar E-Type’s and olucky MG roadsters at car shows across East Anglia, from Kimbolton to Maxey, Ely to Stamford. Classic car shows are a portal to the past and a glimpse back into our childhoods. Classic motoring is a pastime, hobby and living history book all at the same time.

Major historic vehicle events like the NEC Classic Motor Show draw crowds of over 70,000, while there are hundreds of car shows across the village greens of England all summer. To communities, these events were vital opportunities to raise money for local charities and increase awareness of causes that really mattered. In fact, my love of motoring was sparked by these events. My desire to own a Mazda MX-5 was evoked solely through those formative years marvelling at the Japanese convertibles parked elegantly on the field.

The changes could affect just 340,000 older vehicle owners, but the damage could be longer lasting. Data shows historic vehicles are now primarily owned by Gen X, those between 45 and 60 years old, followed by Boomers born between 1946 and 1964.

With the cost of living still a burden for families and pensioners, will rising bills put many off ditching their historic models altogether? Classic car owners love their vehicle with the brightest of passion, but would be enough if costs continued to rise above many people’s means. If historics were to be lost, it would be a devastating blow to the passion of the owners and legacy of the brands that made Britain’s automotive industry a world leader over the past 100 years.

Polls have already shown that a quarter of classic car owners are concerned that future government legislation may start to become a barrier to future historic vehicle ownership.

The Federation of British Historic Vehicle Clubs (FBHVC) also suggests the classic motoring scene is a “thriving sector”, contributing £7.3 billion to the UK economy each year.

Higher running costs could mean less cars, which means less business and less revenue, so it could all backfire after all. Next, the environmental impact, even though these models emit petrol and diesel fumes, they have essentially “paid off” their manufacturing carbon footprint across decades of use.

The Treasury is keeping coy about any changes, simply suggesting that the Chancellor will make any “tax policy decisions at fiscal events”.

However, a loss of the vehicle tax exemption rule would be a travesty for UK motoring and would surely cement Labour’s image as being against British drivers.