Question to the Department for Transport:

To ask His Majesty's Government what assessment they have made of the impact of the reformed HGV levy on logistics businesses operating Euro VI HGVs.

The Government reformed the HGV levy in February 2019 to incentivise vehicle operators to move towards newer, cleaner, Euro VI vehicles to reduce emissions from HGVs and improve air quality. Euro VI rates were reduced by up to 10% and rates for other vehicles increased by 20%, benefitting logistics businesses operating Euro VI HGVs.

The levy was suspended in August 2020 to support the haulage sector and aid COVID-19 pandemic recovery efforts. The suspension provided the opportunity to consider further reforms to the levy. Following public consultation in 2022, a new reformed levy will come into effect in August 2023 with a revised structure and with rates on average around 20% lower than they were before the suspension.

The consultation included analyses of the impacts of the changes, although no changes were proposed relating to retaining a differential between Euro VI and other vehicles.