Susie Jones
Where does the HGV levy go?
Created: 22/08/2024
•
Updated: 22/08/2024
On the 1st of August 2023, the Government reintroduced the HGV levy after a three-year suspension. Since its introduction in 2014, the levy has been a regular but unwelcome occurrence for those in the haulage industry - leaving many drivers and fleets wondering what the benefits are.
What is the HGV levy?
The Government website states that the HGV levy:
"Ensures all HGVs from 12 tonnes and over make a contribution when they use UK roads."
What is it used for?
The levy addresses the, environmental impact and infrastructure costs heavy goods vehicles have on the UK. Its purpose and the benefits it proposes are the following:
• Fairness - The levy ensures trucks placing a significant strain on the road infrastructure contribute their share towards maintenance and development costs.
• Emissions - Due to the environmental impact of HGVs, the levy encourages cleaner and more efficient vehicles.
• Road maintenance - Funding from the HGV levy maintains and improves the road infrastructure - ensuring those who benefit from the road network contribute directly to its maintenance.
Why was the HGV levy suspended?
During the pandemic in 2020, to assist in reducing financial liabilities for the UK and foreign hauliers, the Government suspended the HGV levy - a one-year suspension was planned but extended to three years.
The new HGV levy was reintroduced and is aimed primarily at emissions, weight, and time spent in the UK. Hauliers can expect to pay between £150 to £749 depending on vehicle weight (including trailer weight), its Euro emissions class, and the time it spends in the UK.
Where do drivers want to see the levy spent?
A report shared by the RHA stated that its members wanted to see bridge strike signs paid for out of the levy. However, a survey conducted via Facebook identified that 75% of drivers wanted to see the HGV levy money spent on better roadside facilities.
Truck driver Luke wanted to see "the HGV levy invested in secure, sanitary, and affordable parking before anything else."
With truck stops being a haven for drivers, it's vital they provide drivers with excellent facilities and secure parking. For many drivers, they are more than a place to rest and refuel - they are a place that plays a crucial role in improving well-being.
Drivers Ian and Peter want to see the money spent expanding the network across the UK.
"We need more locations for us to park safely," states Ian. Peter explains that the industry is in dire need of "better facilities at stops as well as new truck stops."
Although the HGV levy reintroduction has been met with negative sentiment by those in the haulage industry, it is something that firms must accept is here to stay. Its role ensures revenue for road maintenance and is vital in encouraging a clean and more efficient industry.
Who must pay the HGV road user levy?
Operators and drivers are responsible for paying the levy. Non-UK vehicles must pay before entering the country. UK-registered trucks will have the rates calculated automatically by the DVLA and paid in the same transaction as vehicle exercise duty.
Is the Government still funding HGV training?
To help alleviate the strain Brexit and the pandemic had on the haulage industry, in 2021, the Government introduced plans to get more drivers on the road. The funding provided training for 4,000 drivers to gain their HGV licence. HGV Skills Bootcamps opened to fund other adult learners as well.
The Department for Education confirmed that funding would run until the end of the 2023 academic year.