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HGV Levy Reform Consultation

Volume 716: debated on Monday 20 June 2022

My noble Friend the Parliamentary Under-Secretary of State for Transport (Baroness Vere of Norbiton) has made the following ministerial statement.

Today the Government are publishing a consultation on reforming the heavy goods vehicle (HGV) levy. The HGV levy has been suspended since 1 August 2020 to support the haulage sector and aid pandemic recovery efforts. Today’s consultation seeks industry views on two ways in which the levy could be reformed when the suspension ends as planned on 31 July 2023.

Firstly, the Government are considering reforming the HGV levy so that it is more reflective of the environmental performance of the vehicle. The levy would be restructured to be based on the weight of the vehicle, as an indicative proxy for carbon dioxide emissions. If this reform were carried out, the majority of UK vehicles will pay less or the same than they did before the previous levy was suspended. The alternative would be to continue with the current structure and rates.

Second, the Government are minded to reform the levy liability for foreign HGVs, such that they pay only when driving on major roads. This is to clarify that the levy design is unambiguously in line with the Government’s international obligations.

The consultation will be published on the Department for Transport website and will run for four weeks.