The UK government has announced the reintroduction of the HGV levy in August 2023, as part of the Spring Budget 2023.
The levy will now be charged based on the environmental and air quality damage caused by HGVs, instead of the weight and number of axles on a vehicle.
While the reforms have made the calculation of the levy simpler and generally the cost per vehicle will be lower, the timing of the reintroduction of the levy is concerning for the industry, particularly for small operators who will be disproportionately impacted, wrote Ashton Cull, RHA Public Affairs Manager, in a statement.
“Bringing the HGV levy back this year, at a time when costs are consistently rising in the road haulage sector, is yet another burden upon the backbone of the UK supply chain. Our RHA Costs Survey last year showed the cost of running an HGV had increased by nearly 20%, driving up inflation across the UK economy. It is also disappointing that the levy is no longer focussed on maintaining essential road infrastructure that all Britons rely on. We are clear that, when finding alternative methods to fund that vital expenditure, the Government must not impose any additional costs on our sector” the statement reads.
Cull adds that the RHA supports the motivation behind the levy to achieve environmental goals.
However, he also urges the government to support small businesses during a time of rising costs and ensure that responsible UK hauliers are not out of pocket.
Photo credits @ David Dixon, under CC BY-SA 2.0