Fleet operators are increasingly being caught by the UK’s “luxury car tax”, with new FOI data showing the number of vehicles paying the Expensive Car Supplement (ECS) has jumped 42% in two years. Marshall Motor Group reports that more than 426,000 ICE, hybrid and electric cars incurred the surcharge last year, up from 299,553 in 2022/23.
The surge comes despite the Government’s recent Budget decision to raise the ECS threshold for EVs from £40,000 to £50,000, acknowledging the “disproportionate impact” on zero-emission models. EVs registered above £40,000 between April–September 2025 generated over £50 million a year in ECS revenue alone.
Hybrids are now the largest group affected, rising from 116,568 to 247,613 in just two years. “These are vehicles many drivers wouldn’t consider ‘expensive’,” said Marshall Motor Group’s Ben Welham. “A hybrid SUV can easily tip over £40,000 once fitted with the safety tech fleets expect.”
Diesel entries have fallen sharply, reflecting the wider market shift.
Some industry leaders argue the new £50k EV threshold still isn’t high enough. Alphabet data shows the average value of quotable EVs sits at £56,633, with 53% of EVs above £50k averaging £72,437. “The threshold needs to move further to reflect real-world pricing,” said Caroline Sandall-Mansergh of Alphabet GB.