UK car tax changes have put a "brake in demand" as millions risk an extra £425 charge. The Labour Party Chancellor, Rachel Reeves, announced changes to the Expensive Car Supplement at the Autumn Budget.

But the move has imposed an "effective fine" of more than £360million on UK road users. The Expensive Car Supplement imposes an additional tariff of £425 on vehicles priced at more than £40,000, with electric cars previously exempt from the levy.

The Society of Motor Manufacturers and Traders (SMMT) warned it has created a "brake on demand" at a critical juncture for the car sector.

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Mike Hawes, chief executive of the SMMT, said: "July’s dip shows yet again the new car market’s sensitivity to external factors,

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