Van sales plummeted in the immediate aftermath of Rachel Reeves's Budget last year where she announced new car tax changes, according to new research.
The used van market dropped nearly 12 per cent following the Chancellor's Autumn Statement as experts call for urgent support to save the sector.
Ahead of the new car tax changes launching in April, motorists are concerned about van sales as some vehicles could be forced to pay almost £6,000.
Analysis found that 2,165 fewer vans were sold in the month following the October 30 Budget announcement compared to the previous month.
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Van sales dropped in the month following the Autumn Budget
PA
The figures revealed average daily van sales dropped from 627 to 552 following the budget announcement, representing a decrease of 75 vehicles per day.
The data, seen exclusively by GB News, detailed how 18,174 used vans were sold across the UK between October 1 and 29 last year.
However, after Reeves announced huge car tax hikes, this figure fell to 16,009 in the period from October 31 to November 30, marking a decline of almost 12 per cent.
Alastair Campbell, from Marketcheck UK, told GB News: "These figures could indicate a decline in confidence across the economy, particularly in trades, following the Autumn Budget.
"This trend highlights underlying economic challenges across various industries, especially those smaller companies where margins are tight and additional cost burdens could delay or slow investment."
He emphasised that analysing used van sales provides valuable insight into economic sentiment among trade businesses.
The data recorded how the commercial sector may be particularly sensitive to policy changes affecting vehicle costs.
From April, car rates will increase in line with the Retail Price Index for all cars, vans and motorcycles. The changes will affect all vehicle owners, including those with electric vehicles, who will have to pay car tax for the first time.
The Treasury measure will impact all motorists owning cars, vans or motorcycles, with rates adjusted to maintain their "real-terms value".
First-year rates for new cars will see significant changes from April, with wider differences between vehicle types. Electric cars will be forced to pay the lowest rate of £10 until 2029-30, while hybrids and cars emitting between one and 50g/km of CO2 will see rates increase to £110.
Vehicles emitting 51-75g/km of CO2, including hybrids, will face charges of £130. All other cars emitting 76g/km of CO2 and above will see their rates double from current levels.
In a further change from April 2025, double cab pick-up vehicles with a payload of one tonne or more will now be reclassified and treated as cars for tax purposes.
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Electric cars will be charged the lowest rate of VED from April 2025PACampbell added: "Whether this is as a result of decreased capital available to expand their businesses, or a lack of confidence due to contractions in other sectors is unclear, but it is certainly a concern
"Analysing business activity through the sales of used vans is an insightful method to discover how the trades could perceive the economy."
