The Government will suspend the HGV Levy for 12 months from August 1, according to the Chartered Institute of Logistics and Transport (CILT).
Ministers have made the move, it says, to help reduce financial liabilities for UK and foreign hauliers struggling to cope with impact of Covid-19. The Levy will be suspended until July 31, 2021.
In a statement to industry, a Government spokesperson said: "The haulage industry is critical to keeping the country moving and plays a key role in supporting our economy recovery and growth. The suspension of the Levy is intended to provide some relief to hauliers, given the difficulties faced by the sector during the pandemic."
The HGV Road User Levy applies to heavy goods vehicles (HGV) of 12 tonnes or more. The aim of the levy is to ensure these vehicles make a contribution to the wear and tear of the road network.
The levy amount varies according to the vehicle’s weight, axle configuration and levy duration.
Hauliers do not need to do anything to benefit from the 12-month suspension. A levy rate of zero will automatically apply at a vehicle’s normal VED/levy renewal date from August onwards so that each vehicle will benefit from 12 months of the discounted rate.
During the next year, the Government will take the opportunity to review the HGV Levy and ensure that it continues to meet the Government’s current and future objectives, says the CILT. They will be working with freight representative groups in the development and re-shaping of the levy in the coming months.
Further information on this suspension can be found here.