The HGV levy, which was temporarily suspended during the Covid-19 pandemic, is set to make a comeback on August 1st, with a renewed emphasis on emissions, weight, and time spent in the UK.
According to the Department for Transport (DfT), vehicles weighing 12 tonnes or more that travel on motorways or A roads will be subject to the levy. The amount charged will be determined based on factors such as the vehicle’s weight, including any trailers for rigid vehicles, its Euro emissions class, and the duration of its stay in the UK. The rates will range from £150 to £749 per vehicle per year.
The DfT stated that the reintroduced HGV levy aims to ensure that lorries contribute to the upkeep of the road network, taking into account the wear and tear caused by their operations. The department also emphasized that the reforms to the levy reflect a stronger focus on air quality emissions and indicative levels of CO2 emissions, aligning with the government’s international obligations.
The suspension of the HGV levy in August 2020 was implemented to support the haulage sector and aid pandemic recovery efforts. Mr. Cull expressed disappointment that the levy no longer prioritizes the maintenance of essential road infrastructure relied upon by all Britons. He urged the government to find alternative methods to fund this crucial expenditure without burdening the sector with additional costs.
However, Mr. Cull acknowledged that the levy reforms simplify calculations by introducing only six potential rates instead of the previous 22. He noted that, on the whole, per-vehicle costs are expected to be lower, citing a reduction from £996.00 to £749.00 for the highest rate. Nevertheless, certain niche operations may experience significant percentage increases.
Mr. Cull emphasized that despite reservations, the haulage sector begrudgingly accepts the HGV levy’s overarching purpose, which remains unchanged: to ensure that foreign HGVs contributing to the UK make efforts to rectify the impacts of their operations. RHA executive director of communications, Rod McKenzie, echoed this sentiment, acknowledging the levy’s fair aim but criticizing the timing of its reinstatement and calling for a postponement to spare UK hauliers from additional costs.
In response to the Budget announcement, Logistics UK expressed concerns about the proposed reformed levy and vowed to seek urgent clarification on the details for its members.
Note: The article has been rewritten while preserving the main points and ideas from the original text. Some minor modifications have been made for clarity and conciseness.
