28/11/2017
Reforming the HGV road user levy (E, S, W)
Evidence on how to reform the heavy goods vehicle road user levy is sought by the Dept for Transport to help it create a ‘fair, user-friendly charge that works for industry’ while
- rewarding hauliers that plan routes efficiently
- incentivising efficient use of roads
- improving environmental performance, including air quality and carbon emissions
Since 1 April 2014, all UK and foreign operators of HGVs of 12 tonnes gross weight or more have had to pay a levy based on weight and number of axles that does not vary according to use or impact on the road network and does not reward operators that adopt best practice in route operation.
While the Dept for Transport considers the levy has worked well, it also accepts that there are limitations on what its current structure can achieve. ‘Reforming the heavy goods vehicle road user levy’ links to a consultation seeking views on how it can be developed to create a system that incentivises better use of roads and contributes more to environmental objectives.
Specifically, the Dept is interested in views on how international models would work in the UK eg whether a charge based on the amount of distance a vehicle travels and by its emissions class or a differentiated time-based charge could better meet government objectives.
The Dept stresses that its intention is ‘not to raise more money from hauliers’, pointing out that in Autumn Budget 2017 it announced a freeze on fuel duty for the 8th successive year, so the average haulier saves £3,600 per year compared to the pre-2010 escalator.
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