Load levy duty to rise by 20% for majority of hauliers
Yet again, the government hits hauliers, just when they need the most help.
The recent announcement by Transport Minister Jesse Norman’s confirms that in less than twelve months’ time, the majority of haulage operators will have to pay an additional 20% towards the HGV Road User Levy. An increase that many can ill afford to bear.
Commenting, RHA chief executive, Richard Burnett said:
“We’re at a complete loss as to understand Government’s latest decision to inflict yet more pain with another tax hike on hauliers.
“Road transport operators have made huge strides in adopting cleaner air technologies. 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.
“Of course, we all want clean air,” continued Richard Burnett. “But we consider it grossly unfair that Government uses clean air policies to justify squeezing money out of already cash-strapped hauliers to plug financial gaps elsewhere. Where is the incentive? What’s needed is a realistic scrappage scheme that supports our industry during this transition, not a penal approach.”
How does this help the Haulage industry?
The Head of UK Policy at FTA, Christopher Snelling, mentioned that any reduction in levy for the Euro 6 vehicles was good news. However this is offset by the increase for Euro 5 and earlier vehicles, and it will impact small and medium-sized businesses who:
“already face increased costs as they need to upgrade to Euro 6 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 4 and 5s, has fallen so much – making the jump to afford a new Euro 6 so much greater.
“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.”
Mr Burnett concluded with:
“This latest move is aggressive, anti-business and does nothing to reassure the industry responsible for moving 90% of the economy that it’s doing a great job. With Brexit looming this industry needs some good news, the reality is that this latest announcement amounts to little more than delivering another kick to an industry already on its knees”.