Dover-ferry

The BVRLA has welcomed the introduction of the HGV Road User Levy, which comes into effect today (1 April) and means that foreign-registered lorries will have to pay to travel on UK roads.

The time-based charge will be applied to all lorries weighing more than 12 tonnes that are used or kept on UK roads, and will cost £10 a day or £1,000 a year, which is the maximum charge permitted under EU regulations.

UK hauliers will have to pay the levy as well, but will be able to pay it at the same time and in the same transaction as their vehicle excise duty (VED), which has subsequently been reduced to compensate them for the charge. The Department for Transport claims that more than 90% of Britain’s LGVs will not see costs rise.

“This levy will help redress the unfair competition that UK hauliers have faced from their European counterparts, but it is vital that the new regime is robustly enforced across the UK,” said BVRLA legal and policy director Jay Parmar.

“The government responded to our calls for tougher penalties for non-payers, but we feel that increasing the fine from £100 to £300 will not be enough of a deterrent to stop some hauliers chancing their arm.

He added that he would like to see the DVSA, DVA and police being given more resources to enforce the new levy. “As well as enforcement cameras, we need extra officers on the roadside to collect penalties from foreign hauliers,” Parmar said.

The FTA and RHA are also supportive of the new levy, with both organisations having campaigned for many years to introduce a system of charging for foreign hauliers, as a means to level the playing field for domestic operators.

Karen Dee, FTA director of policy, said: “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.”

Jack Semple, director of policy at the RHA, said: “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 so promptly, a year ahead of deadline.”

He added that the government has worked to ensure that the scheme keeps the impact on the UK industry to an absolute minimum and have engaged constructively with the RHA to achieve this aim.