UK truck drivers working in Europe currently pay tolls and levies when delivering goods abroad. But foreign trucks operating in the UK have not been required to make a similar payment.

The HGV Road User Levy – which is being brought in nearly a year ahead of schedule – introduces a charge that ‘ensures British hauliers are better able to compete with their foreign counterparts’.

The levy has long been called for by the UK haulage industry and creates a fairer system by removing some of the inequality UK hauliers feel when paying to use many roads abroad.

Transport Secretary Patrick McLoughlin said: ‘The HGV Levy will provide a massive boost for the UK haulage industry.  It will create a level playing field across Europe, giving UK firms a much better opportunity to win business.

‘This is yet another example of how we are taking positive action to back British business and build a stronger, more competitive economy.’

The levy is a key part of the Coalition Government's promise of a fairer deal for UK hauliers. Duty on standard diesel is now lower than it was in October 2010 and there has been no increase in HGV Vehicle Excise Duty (VED) during this Parliament.

The levy affects all HGVs of 12 tonnes or more that drive on UK roads, irrespective of country of registration. 

The levy is structured in a series of bands which reflect vehicle type, weight and number of axles. UK operators will pay the levy at the same time as VED in one transaction for administrative ease.  At the same time as introducing the levy, the government is reducing VED, such that more than nine out of ten UK vehicles will pay no more than now.

Foreign operators must pay the levy before using UK roads. Discounts are available for longer periods with charges varying between £1.70 and £10 per day or £85 to £1,000 per year.