
The HGV Road User Levy has taken a step nearer to reality after the Department for Transport (DfT) awarded a contract to a private software firm to operate the payment system.
The time-based user charge is due to be launched next April and is designed to ensure foreign hauliers contribute to the cost of maintaining UK roads.
The DfT said that Northgate Public Services, which also collects 50% of the country’s council tax and digitises fingerprints for police forces, will develop the foreign operator payment system until 2019.
Companies or drivers will be able to purchase the £10 per day, or £1,000 per year, levy in advance of entering the UK, via online, telephone or at point of sale terminals.
UK companies will pay for the levy alongside VED, which will be reduced in line with the levy.
Anyone who doesn’t pay or underpays faces a £300 fine.
- Speaking in a debate in parliament on cycling this week (2 September), Labour shadow transport secretary Maria Eagle suggested cycle safety equipment should be mandatory on all trucks and called for the £23m the HGV levy is forecast to raise to be used to support the haulage industry in achieving this.