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Transport Update

Statement made on 20 June 2022

Statement UIN HCWS115

Statement

My Noble Friend, the Parliamentary Under Secretary of State for Transport (Baroness Vere of Norbiton) has made the following Ministerial Statement.

Today 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 two 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 four weeks.

Linked statements

This statement has also been made in the House of Lords

Department for Transport
Transport Update
Baroness Vere of Norbiton
Parliamentary Under Secretary of State for Transport
Conservative, Life peer
Statement made 20 June 2022
HLWS115
Lords