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Foreign trucks charged to drive in UK from April

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Author: | Updated: 31 Mar 2014 16:03

Foreign hauliers will be charged to drive their truck on UK roads from this week, when the HGV Levy takes effect.

From Tuesday [April 1], all lorries registered outside the UK and weighing more than 12 tonnes will be charged up to £10 a day or £1,000 per year to drive in the UK.

Brought in nearly a year ahead of schedule, the HGV Road User Levy is intended to level the playing field for UK truck drivers who are often forced to pay tolls when driving in Europe. Before now, their non-UK-based counterparts have been able to use British roads without any charge.

Transport Secretary Patrick McLoughlin believes it will boost the UK haulage industry by giving firms a much better opportunity to win business.

“This is yet another example of how we are taking positive action to back British business and build a stronger, more competitive economy,” he commented.

Foreign hauliers will be charged to drive their truck on UK roads from April 1

Imbalance

Foreign operators must pay the levy before entering the UK, either online, on the telephone and at point-of-sale terminals.

Discounts will be applied for longer periods with charges varying between £1.70 and £10 per day or £85 to £1,000 per year. Those who avoid refuse or can’t pay the levy face a £300 fine.

The Freight Transport Association has long called for the levy’s introduction and believes funds collected with the charge should be used to reduce VED rates for UK firms.

Karen Dee, the group’s Director of Policy, said: “Until now, operators of foreign HGVs have paid nothing in UK taxes. They pay vehicle tax in their own country, and buy low-taxed diesel before entering the UK, and in so doing save up to £200 on a full tank of fuel.

“The levy won’t fully redress this imbalance in costs, but it does create a fairer arrangement for UK operators.”

Ian Baxter of Nottingham-based Baxter Freight isn’t convinced though.

“It's true that Germany, Austria and Switzerland have similar charges but the main reason they do is to catch transit traffic where hauliers use their roads for cargo that isn't going from or to their countries,” he commented. “That isn't relevant to Britain other than a small amount of cargo transiting the UK to or from Ireland.

“Whilst this new tax notionally raises money from foreign hauliers the reality is that UK manufacturers and British consumers will pay the bill. So all we have really achieved is an increase in UK taxes and the bureaucracy that goes with it.

“The Chancellor has done many things to help with Britain's competitiveness. This isn't one of them.”

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