HGV DRIVERS were given a boost by Rishi Sunak in October’s Budget, as he announced the suspension of the HGV levy until 2023 and frozen vehicle excise duty (VED) for HGVs.
Budget 2021: Sunak outlines measures to alleviate HGV crisis
The Government had previously suspended the HGV levy until August, and have now extended it for a further year until 2023. The Chancellor also announced a freeze on vehicle excise duty (VED) for HGVs.
Funding has also been announced to improve lorry park facilities.
These announcements will be welcomed by HGV drivers who have complained of poor facilities for a number of months.
Many HGV drivers have called for improved facilities and working conditions, as highlighted during the driver shortage crisis in recent months.
A further £21billion will be invested into the roads, including a £5billion investment for local roads, enough to fill one million more potholes.
Rishi Sunak highlighted the necessity to improve roads and facilities for HGV drivers.
He said: “We’ve already suspended the HGV levy until August and I can do more today extending it for a further year until 2023, and freezing Vehicle Excise Duty for heavy goods vehicles.”
The Chancellor admitted it was “irresponsible” to think the supply issues could be resolved overnight.
As part of the Budget, the Government have placed on emphasis on investing in transport.
A further £46billion is to be invested to develop the railways across the UK.
In the Government’s Budget document, they have outlined the investment into HGVs.
Between June 2019 and June 2021, the number of HGV drivers has fallen by 39,000, as the UK and countries around the world had to deal with a shortage of drivers.
The Government is supporting the haulage industry by investing £32.5million in roadside facilities for HGV drivers on the road, something which has been demanded for a long time.
It has also increased the number of HGV driving tests available by up to 50,000 each year.
In addition to this, it has issued up to 5,000 short-term temporary visas for food and fuel haulage drivers to work in the UK.
The Budget announces that vehicle excise duty (VED) rates for HGVs will remain frozen in 2022-23, and the HGV Levy will be suspended for another 12 months from August 2022, in order to support the haulage sector.
As the Government continues to work towards its net zero goals, £300million will be invested for research and development (R&D) programmes.
This will help commercialise low and zero emission technologies, including trials of three zero emission HGV technologies on UK roads and a multi-year clean maritime demonstration competition.
Rishi Sunak also updated drivers on company car tax rates.
As announced at Budget 2020, the Government confirms that the CCT rates already announced for 2022-23 will remain frozen until 2024-25.
