HGV Levy: Government needs views on reform

HGV Levy: Government needs views on reform

21 Jun 2022 Posted By James Evison

The government is seeking views from hauliers on how the HGV levy could be reformed when the current suspension ends in 2023.

The levy, due to come back into force in July 2023, was shelved at the beginning of the pandemic – but government is now looking at potential reform of the policy.

Two systems

It is seeking views on two approaches: either to keep the current system in place or make it “more reflective of the environmental performance of the vehicle”. In the later case, the levy would be restructured to be based on the weight of the vehicle, as “an indicative proxy for carbon dioxide emissions”.

If reform was applied, most UK vehicles would either pay less or the same as before the previous levy was suspended, the government claimed.

Alternatively, it is seeking views on continuing the current structure and rates.

The new system the Government is consulting on, like the previous one, proposes higher levy rates for Euro V or older lorries.

The new system has fewer charging bands, just three in the option given in the consultation paper.

Foreign HGVs

Government said it was “minded to reform” the levy for foreign HGVs so they only pay when driving on major roads. This was to ensure the levy is “is unambiguously in line with the government’s international obligations”.

The consultation will be published on the Department for Transport website and will run until 18 July.

The RHA will respond to the consultation in due course.

You can take part in the consultation here

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