Annual road tax rates will increase by the rate of inflation for 2011-12, it was announced in the Budget.
 
It effectively means no increse for low CO2 models, a £5 a year increase in graduated VED for cars with CO2 emissions from 121g/km to 150g/km with steeper rises for cars with greater CO2 outputs.
 
Vehicle excise duty for heavy goods vehicles was frozen.
 
Annual Vehicle Excise Duty bands and rates for cars registered after March 2001
 
VED band     CO2             2010-111      2011-121    2011-121(1st yr)
A                   Up to 100       £0                    £0                  £0
B                   101-110         £20                 £20                 £0
C                   111-120         £30                 £30                 £0
D                   121-130         £90                 £95                 £0
E                   131-140         £110               £115               £115
F                   141-150         £125               £130               £130
G                   151-165         £155               £165               £165
H                   166-175         £180               £190               £265
I                    176-185         £200               £210               £315
J                    186-200         £235               £245               £445
K2                  201-225         £245               £260               £580
L                    226-255         £425               £445               £790
M                   Over 255        £435               £460               £1,000
 
1 Alternative fuel discount: £10
2 Includes cars emitting more than 225g/km registered before March 23, 2006