HGV levy on foreign hauliers generates £44 million in first year of operation

25 Mar 2015 01:25 PM

Since 1 April 2014 the HGV levy has raised more than £44 million from foreign HGVs.

 

Over the course of 1 year the HGV levy, introduced on 1 April 2014, has raised more than £44 million from foreign HGVs, Transport Minister Robert Goodwill announced today (25 March 2015).

Foreign truck operators from 90 countries have purchased more than 1.8 million levies, a time-based charge that ensures all HGVs over 12 tonnes contribute towards their use of UK roads.

Transport Minister Robert Goodwill said:

The HGV levy is proving a huge success and it is absolutely right that all trucks using UK roads should make a contribution to the wear and tear they cause.

This levy is supported by the British haulage industry and has levelled the playing field for operators. UK-registered vehicles regularly pay their way through tolls and user charges in Europe and it is only fair that foreign HGVs are not exempt from charges in this country.

Jack Semple, Policy Director at the Road Haulage Association (RHA) said:

The levy is a success story. The RHA had very productive discussions with the Department for Transport as the scheme was being developed and it was brought in smoothly and on time – even though the schedule was quite demanding. A year on from the launch, the levy appears to be delivering for the haulage industry exactly what we were hoping for.

UK-registered vehicles pay the levy either annually or 6 monthly alongside Vehicle Excise Duty. For foreign operators, transactions are made on-line using a dedicated foreign payment system.

98% of foreign levies purchased have been the highest band (band G) of £10 per day or £1,000 per year. Over 90% of foreign levies purchased have been for less than a week. Top payers include operators from Poland, who account for more than 26%, Romania who have purchased nearly 12% and Spain who have purchased over 8% of all foreign levies.

Where the levy has not been paid, the driver faces a £300 on the spot fine at the roadside. Enforcement agencies have issued some 2,500 fixed penalty notices and collected fines of over £750,000 for non-levy payment.