Don't bring back HGV Levy, RHA tells government

The RHA is warning the government against reintroducing the HGV Levy, which it argues is no more than a tax increase on all road haulage.

The warning comes as a government consultation on reforming the levy - suspended during the pandemic - draws to a close. The RHA is urging all hauliers to respond to the consultation before it closes on 18 July.

Introduced in 2014, the levy applies to HGVs of 12 tonnes or more with the levy amount varying according to the vehicle's weight, axle configuration and levy duration.

The consultation on the HGV Levy is seeking views on the proposal to align the suspended HGV levy with the environmental performance of the vehicle, using the weight of the HGV to approximate the carbon dioxide (CO2) emissions of the vehicle. The government believes this change would result in most HGVs either paying less or the same as before the previous levy was suspended.

It also wants views on changing the levy on foreign lorries so they only pay when driving on major roads, to ensure the levy is “is unambiguously in line with the government’s international obligations”. The consultation is also seeking opinions on whether the current structure of the levy should be retained.

However the RHA is arguing against any re-introduction of the levy which it believes is a tax increase on all road haulage.

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In a statement RHA said this week: "If the government does introduce the Levy, we believe a lower rate of £100 for Euro VI or £130 for older lorries is applied to lorries below 18t GVW.

"We also oppose the Levy due to the cost it will impose all operators of lorries over 12t GVW. Additionally, lorries under 18t GVW are facing the largest increase in the Levy. Our suggestion of a reduction to £100 for Euro VI will bring those lorries broadly in line with the previous rate."

It added:" 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."