The following Ministerial Statement was issued by my Noble Friend, the Parliamentary Under Secretary of State for Transport (Baroness Vere of Norbiton).
The government is launching a consultation on changing the heavy goods vehicle (HGV) charge today (20 June 2022). Since August 1, 2020, the HGV levy has been suspended to help the haulage industry and pandemic recovery efforts.
The levy will be changed in two ways when the suspension ends on July 31, 2023, as anticipated, according to today’s consultation.
To begin with, the government is considering revising the HGV levy to make it more indicative of the vehicle’s environmental performance. The fee would be rebuilt to be based on the vehicle’s weight as an approximation of carbon dioxide emissions.
The majority of UK vehicles will pay less or the same as they did before the prior charge was stopped if this reform is implemented. The other option is to maintain the current structure and rates.
Second, the government intends to alter the foreign HGV levy duty so that they only pay when travelling on important roadways. This is to make it clear that the levy’s design complies with the government’s international commitments.
The consultation will be available for four weeks on the Department of Transportation’s website.