HGV Levy to be suspended for a year amidst economic recovery

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The Government is set to suspend the HGV Road User Levy for 12 months from the beginning of August. The move aims to reduce the financial impact on businesses coping with the economic fallout from COVID-19.

The levy typically applies to heavy goods vehicles weighing over 12 tonnes, as these vehicles are more likely to have an effect on the natural wear and tear on the nation’s roads. However, this is being relaxed until 31 July 2021 to give struggling businesses one less thing to worry about and save money in this difficult period.

What do you need to do?

Well, nothing! Hauliers will automatically benefit from the year-long levy suspension as a levy rate of zero will be applied at the vehicle’s next renewal date. That means once a vehicle’s normal excess duty is discounted, operators won’t need to worry about it for another 12 months.

In a statement to the industry, a Government spokesperson noted: “The haulage industry is critical to keeping the country moving and plays a key role in supporting our economy, recovery and growth.” Over the course of the next year, the Government will also review the HGV Levy to ensure it continues to meet future objectives whilst remaining fair to heavy vehicle operators.

The future of vehicles post-COVID

While the coronavirus lockdown has had a significant impact on the economy, its effects on the environment have been more positive. The change in public attitudes towards cleaner air and reduced emissions strongly makes the case for more electrified vehicles on the roads.

Fleets will likely play a leading role in the UK’s adoption of decarbonised vehicles. As more and more commercial vehicles going electric, the demand for supporting infrastructure like charging points will go up. Ultimately, this would have a knock-on effect of more private motorists joining the EV market.

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