HGV levy raises more than £44m

Published: 09 April 2015

HGV levy raises more than £44m

The HGV levy which was put in to action in April 2014 has now raised more than £44m from foreign HGVs using the UK road network.The figure was recently announced by Transport Minister Robert Goodwill.

The figure is over double the amount the government originally expected to raise from the levy with the original forecasted figure at £20m for the year. This means that there are more than double the amount of non UK lorries on our roads that the government thought there was.

Haulage companies from 90 different countries have purchased more than 1.8million levies. The levies range from £1.70 to £10 a day and are applicable to all foreign HGVs weighing more than 12 tonnes using UK roads.

The levy was introduced so foreign haulage companies contribute towards the maintenance of the UK roads in which they regularly use.

Transport Minister Robert Goodwill said “The HGV levy is proving a huge success and it is absolutely right that all trucks using UK roads should make a contribution to the wear and tear they cause.’’

He continued “This levy is supported by the British haulage industry and has levelled the playing field for operators. UK-registered vehicles regularly pay their way through tolls and user charges in Europe and it is only fair that foreign HGVs are not exempt from charges in this country.”

UK-registered vehicles pay the levy either annually or 6 monthly alongside the Vehicle Excise Duty. For foreign hauliers, purchases are made online using a dedicated foreign payment system.

98% of all non UK levies bought have been for the highest band (band G) of £10 per day or £1,000 per year. Over 90% of the non UK levies have been for less than a week. Top payers include companies from Poland, who account for more than a quarter of all the levies, Romania who have bought nearly 12% and Spain who have purchased over 8% of all non UK levies.

If a levy is not paid, the HGV driver faces a £300 roadside fine. Enforcement agencies have issued 2,500 fixed penalty notices and so far collected fines of over £750k for non payment of the levy.

Jack Semple, policy director at the RHA, said “The levy is a success story. The RHA had very productive discussions with the DfT as the scheme was being developed and it was brought in smoothly and on time – even though the schedule was quite demanding. A year on from the launch, the levy appears to be delivering for the haulage industry exactly what we were hoping for.”

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