Petrol and Diesel drivers face higher parking charges and tax increases from April
February 14th, 2025
Motorists in Edinburgh are set to face significant increases in parking fees, with rates expected to rise by 13% across the city. Edinburgh City Council has proposed the hike as part of efforts to address a funding shortfall, with the changes potentially coming into effect on April 1.
The increases coincide with nationwide changes to Vehicle Excise Duty (VED), which will introduce new tax rates for electric vehicles for the first time. The Autumn Budget outlined these adjustments, aiming to create a uniform tax system for all vehicle types.
Under the new tax structure, most plug-in hybrid vehicles that currently pay no VED in their first year will be charged £110 from April. Vehicles in the 51-75g/km CO2 band will see first-year tax rise from £30 (or £20 for hybrids) to £135. Electric vehicles priced over £40,000 will also be subject to a £410 annual “luxury car tax” for five years, starting from the second year after registration.
In addition to tax increases, diesel vehicle owners in Edinburgh will see parking permit fees rise by 16%. Parking charges in key areas, including George Street, St Andrew Square, Charlotte Square, Queen Street, Market Street, and Cockburn Street, could increase by nearly 10%, with an hourly rate reaching £9.
The council’s proposals are expected to be reviewed next week, with the potential for the changes to take effect at the start of the new financial year.