Changes to be made to haulier Levy – British Hauliers 2019 levy increase
On 28 March 2018 the Roads Minister announced changes to the HGV levy so that from February 2019 haulage firms will benefit from a cheaper road user levy if they use less polluting lorries.
But in reality this will mean that half of British hauliers will be facing a 20% increase in the HGV Road User Levy from February 2019.
Department of Transport Statement
The newest lorries generate 80% less nitrogen oxide (NOx) emissions than older ones, so lorries meeting the latest Euro VI emissions standards will be eligible for a 10% reduction in the cost of the Heavy Goods Vehicle (HGV) levy.
Euro Class V and older vehicles will be expected to pay 20% more.
How the levy will affect British Hauliers
Firstly In February 2019 British registered Euro 5 trucks and earlier will be hit with the rise, but the levy for Euro 6 vehicles will reduce by 10%.
This action is part of the government’s wider strategy to improve air quality.
For a typical 40-44-tonne artic, this will add an extra £200 to the current £1,000 annual levy fee, while for Euro 6 trucks the fee will fall to £900.
RHA and FTA Criticism of the Levy
The levy change has been criticised by the Road Haulage Association (RHA) and Freight Transport Association (FTA) as being “unfair”.
Richard Burnett, chief executive of the RHA, said: “Road transport operators have made huge strides in adopting cleaner air technologies.
“The reduction of 10% in the road user levy for Euro VI lorries is good news” says Christopher Snelling, Head of UK Policy at FTA, “as it shows recognition for the success of the HGV Euro VI vehicles, which have 80% lower real world local emissions than previous lorries. However, the introduction of the increased levy on pre-Euro VI trucks will actually hurt those small and medium sized business that already face increased costs as they need to upgrade to Euro VI vehicle early to be compliant with the planned Clean Air Zones.
“It hurts them because the re-sale value of their slightly older lorries, the Euro IV and Vs, has fallen so much – making the jump to afford a new Euro VI so much greater.”
“Trucks have been getting cleaner for decades, we are not dealing with an intractable problem but merely the question of how soon do the beneficial changes come. The Government’s approach to cleaner air risks putting some smaller hauliers’ livelihoods at risk for only a temporary gain on air quality. The reform of the Levy was an opportunity to help, and for the most part the Government has failed to take it.”
Despite this, Government has made it very clear it has no interest in either acknowledging that progress, or in supporting the industry on its journey to an emissions free future”.
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