Rachel Reeves, the Labour Party Chancellor, is under scrutiny for potentially impacting nearly 700,000 classic car owners with proposed tax changes in her upcoming Autumn Budget. Concerns are mounting that this “tax grab” could threaten both the classic car market and the heritage it represents.
According to the Federation of British Historic Vehicle Clubs (FBHVC), the average classic car owner spends approximately £4,567 annually maintaining their prized vehicles. The UK is home to almost two million registered historic vehicles, with 9.7 million people expressing a desire to own one.
The 2025 National Historic Vehicle Survey (NHVS) highlights the cultural significance of these cars, revealing that 22.7 million people view historic vehicles as an important part of British heritage. Ownership is steadily growing, with a 200,000 increase in historic vehicle owners since 2015 and projections estimating 697,000 owners by the end of the decade.
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However, the FBHVC emphasizes the urgent need to train the next generation of engineers and restorers to preserve this legacy. David Whale, Chairman of the FBHVC, stated, “The average owner is now in their sixties, and we urgently need to inspire and train the next generation. Initiatives like our Youngtimer program and industry apprenticeships are vital to safeguarding these vehicles and the skills needed to maintain them.”
Amidst these developments, Shadow Transport Secretary Richard Holden has voiced strong opposition to any tax hikes on classic car owners, warning that Ms. Reeves might consider raising motoring taxes to address a £50 billion budget shortfall. Holden stressed that protecting the classic car sector is his “priority,” underscoring his intent to prevent any damaging tax increases in the forthcoming Budget.