Transport Minister (): My Noble Friend, the
Parliamentary Under Secretary of State for Transport () has made the
following Ministerial Statement.
Today (20 June 2022), the government is 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 2 ways in which the
levy could be reformed when the suspension ends as planned on 31
July 2023.
Firstly, the government is 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.
Secondly, the government is 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 4 weeks.
