From 1 April, foreign hauliers will have to pay to use UK roads as the new HGV Road User Levy is introduced.
The charge aims to ensure UK operators are better able to compete with firms from Europe. It applies to all operators but is accompanied by a reduction in Vehicle Excise Duty so that nine out of 10 domestic vehicles see no increase in costs.
Secretary of State for Transport Patrick McLoughlin said, “The HGV levy will provide a massive boost for the UK haulage industry. It will create a level playing field across Europe, giving UK firms a much better opportunity to win business.
“This is yet another example of how we are taking positive action to back British business and build a stronger, more competitive economy.”
A fine of £300 per vehicle will be imposed for failure to pay the levy which has been welcomed by trade bodies.
Karen Dee, Director of Policy at the Freight Transport Association said, “FTA has consistently supported the introduction of the HGV Road User Levy. Until now operators of foreign HGVs have paid nothing in UK taxes. They pay vehicle tax in their own country, and buy low-taxed diesel before entering the UK, and in so doing save up to £200 on a full tank of fuel.
“The levy won’t fully redress this imbalance in costs, but it does create a fairer arrangement for UK operators.”
Road Haulage Association Director of Policy Jack Semple said, “The levy means that visiting hauliers are legally required to contribute to the cost of our roads for the first time.
“It also does what is possible, within EU law, to level the playing field between UK hauliers and those from the continent and Ireland.”
