HGV Road User Levy Bill (Ways and Means)

Norman Baker Excerpts

Tuesday 23rd October 2012 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I beg to move,

That provision may be made for charging a duty of excise, to be known as HGV road user levy, in respect of heavy goods vehicles used or kept on public roads in the United Kingdom.

With permission, I would like to move that the House supports the introduction of legislation concerning a new levy for all heavy goods vehicles weighing 12 tonnes and over using the UK road network. We intend that the new levy will apply to all categories of public road in the UK and to both UK and foreign-registered HGVs. The introduction of the charge forms the commitment in the coalition agreement stating:

“We will work towards the introduction of a new system of HGV road user charging to ensure a fairer arrangement for UK hauliers.”

HGVs play a crucial role in our economy by supplying businesses and servicing customers. There are approximately 1.5 million trips by foreign-registered HGVs into the UK each year. Of course, that contributes to the well-being of our economy, but there has been an inequality for some time, in that UK hauliers are often charged when they travel abroad, through tolls and other charging schemes, whereas foreign hauliers can use the UK road network for no charge. This is an inequality that the coalition Government wishes to address through this legislation.

I believe that this levy, introduced alongside other measures, such as reductions in the HGV vehicle excise duty, which means that more than nine out of 10 vehicles will pay no more than now, will help the competitiveness of UK business, while ensuring that we continue to enjoy the benefits of free trade with Europe. My Department undertook consultation on this subject earlier this year that indicated that stakeholders, especially those in the logistics sector, support the planned changes. Subject to the legislation being passed, we plan to introduce the levy from April 2014.

I now wish to open the motion to the Floor, and at the end of the debate the Under-Secretary of State for Transport, my hon. Friend the Member for Wimbledon (Stephen Hammond), will respond to the points made.