Under Secretary of State for Transport, Stephen Hammond, issued details of the HGV Road User Levy Bill for debate in the House of Commons today. The new Bill introduces charges for all HGV’s that weigh 12 tonnes or more for using UK roads.  The levy is designed to be cost neutral for UK hauliers, through reductions in the Vehicle Excise Duty (VED).  

The proposed legislation is will restore balance for UK hauliers as they already pay to use many roads in Europe, but foreign-hauliers do not pay to use roads in the UK. The actual charge will be based on time and vehicle type, weight and number of axles. The charging will be linked to the potential damage a HGV causes to a road. The maximum charge will be £1,000 per year or £10 per day for the largest vehicles.

UK-registered HGVs will pay the fee for either a six-monthly or annual period. Foreign-registered vehicles will be able to pay the levy either daily, weekly, monthly or annually.

Rebates will be available under certain circumstances and the scheme will be administered by the DVLA or the Driver and Vehicle Agency in Northern Ireland.

The Road Haulage Association (RHA) welcomed the statement and was pleased  to hear that introduction would take place by Spring 2014 with Director of Policy Jack Semple commenting:

“This is good news for British hauliers and we congratulate ministers on keeping this scheme firmly on track. RHA members have expressed strong support for this scheme. One reason is the principle of charging foreign trucks to use UK roads, another is the contribution it will make to addressing the cost disadvantage faced by British firms because of the very high level of diesel duty that they pay, which is much the highest in the EU. We recognise that this scheme achieves as much as can be done to level the playing field through road charging within EU law.”