Charging scheme will level the playing field

19th November 2012

The Government has announced firm plans to introduce a charging scheme which will mean, for the first time, that foreign commercial vehicles will pay to use UK roads.

The HGV Road User Levy Bill will introduce charges for all HGVs that weigh 12 tonnes and over.

The levy is designed to be cost neutral for UK hauliers, through offsetting reductions in VED payments.  It will be time-based and will vary according to the vehicle type, weight and number of axles.  This is to ensure that the charging scale is linked to the amount of damage a HGV causes to a road.  The levy will be a maximum of £1,000 per year or £10 per day for the largest vehicles.

UK-registered HGVs will pay the levy for either a six-monthly or annual period. Foreign-registered vehicles can pay the levy either daily, weekly, monthly or annually.  Rebates will be available under certain circumstances.

The Bill makes it an offence to fail to pay the levy and a fine of up to £5,000 may be payable.  It also allows the Secretary of State to refuse to issue a vehicle licence if he is not satisfied that the appropriate levy has been paid.

The scheme will be administered by the DVLA or DVA in Northern Ireland, and will be enforced by VOSA (DVA in Northern Ireland).  The Police also have enforcement powers.