Foreign truck operators must now pay for UK road usage 31 March 2014

From tomorrow (1 April 2014) foreign hauliers will be charged to use UK roads under the HGV Road User Levy, which is being brought in nearly a year ahead of schedule.

Transport Secretary Patrick McLoughlin (pictured) makes the point that UK truck drivers working in Europe currently pay tolls and levies abroad. Until now, foreign trucks operating in the UK have not been required to make similar payments.

From midnight, however, overseas operators of trucks weighing more than 12 tonnes must pay a time-based charge of up to £1,000 a year or £10 a day to use UK roads.

"The HGV Levy ... will create a level playing field across Europe, giving UK firms a much better opportunity to win business," comments McLoughlin – adding that it will result in a "massive boost" for the UK haulage industry.

The measure has been roundly welcomed by UK transport industry groups, which have been calling for something similar for many years – although most wanted the DfT (Department for Transport) to go further.

"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," comments Karen Dee, FTA director of policy.

"The levy won't fully redress this imbalance in costs, but it does create a fairer arrangement for UK operators," she continues

But Dee takes comfort from other measures: "FTA believes that the benefits of the HGV levy for UK operators will go beyond the charge... The associated extension and upgrading of the DVSA and DVA roadside enforcement cameras network offers the potential for more effective enforcement of foreign HGV safety standards," she observes.

RHA (Read Haulage Association) takes a similar view. "The levy ... does what is possible within EU law to level the playing field between UK hauliers and those from the continent and Ireland," states RHA director of policy Jack Semple.

"Philip Hammond, when he was transport secretary, committed the Coalition to bringing the scheme in during this parliament and we are pleased that Patrick McLoughlin is bringing in the measure a year ahead of deadline," he adds.

Semple also notes that the DVSA (Driver and Vehicle Standards Agency, formerly VOSA) is geared up for immediate enforcement, and comments: "It is business as usual for the UK industry – British truck operators will pay the levy at the same time as VED [Vehicle Excise Duty]."

For McLoughlin, the new HGV Road User Levy is another example of government "taking positive action to back British business and build a stronger, more competitive economy".

He refers to duty on diesel now lower than it was in October 2010 and the freezing of HGV VED. He also raises the £3.3bn investment in major road schemes that promise over 500 miles of extra lane capacity to the strategic road network, and the £10.7bn to add 400 miles of capacity on motorways.

The levy is structured in bands that reflect vehicle type, weight and number of axles. UK operators will pay the levy at the same time as VED in one transaction.

At the same time as introducing the levy, the government is reducing VED. It claims that more than nine out of 10 UK vehicles will pay no more than now.

Author
Brian Tinhzsm

This material is protected by MA Business copyright
See Terms and Conditions.
One-off usage is permitted but bulk copying is not.
For multiple copies contact the sales team.