Ministers announce HGV levy changes and clean bus funding

Ministers have announced measures to change the rates paid by haulage operators, in a bid to incentivise the use of the cleanest lorries, as well as a further round of funding for cleaner buses.

Under plans announced today (March 28), from February 2019 lorries meeting the Euro VI emissions standard will be eligible for a 10% reduction of the Heavy Goods Vehicle (HGV) levy which sees the levy for Euro VI lorries go down to a current rate of £900 from next year, compared to £1,000 now. For Euro 0-V vehicles, the rate will be £1,200.

Drivers will be offered an incentive to switch to cleaner lorries

According to the government, when the change comes into effect, more than half of UK vehicles will pay less. As increasing numbers of companies move to cleaner lorries, the UK haulage industry overall will pay less.

The HGV road user levy, brought in in 2014, applies to heavy goods vehicles (HGV) of 12 tonnes or more. The aim of the levy is to ensure these vehicles make a contribution to wear on the road network.

Announcing the measure today, Roads Minister Jesse Norman said: “This government is committed to improving the air we breathe and delivering a green revolution in transport.

“Heavy goods vehicles account for around a fifth of harmful nitrogen oxide emissions from road transport, but they only travel 5% of the total miles.

“That’s why we’re changing the HGV levy to encourage firms to phase out the most polluting lorries and bring in the cleanest ones.”

Ultra low emission bus fund

Alongside the changes to the HGV levy, ministers have also announced today the latest round of funding to procure cleaner buses across England and Wales.

Ministers have also announced the latest round of funding for clean buses

The Ultra-Low Emission Bus Scheme, which follows on from earlier funding awarded by the Department for Transport (DfT) will see local authorities and bus operators offered a share of £48 million which can be used to support the rollout of new ultra low emission buses and supporting infrastructure.

Transport Minister Nusrat Ghani said: “We are doing more than ever before to reduce greenhouse gas pollution across all modes of transport and we are committed to ensuring nearly all cars and vans are emissions-free at their tailpipes by 2050.

“In order to achieve this ambitious target, the transport sector is going to have to change dramatically over the next couple of decades — and buses are no exception.

“We are confident this scheme will encourage councils and operators to invest in these ultra-low emission vehicles – speeding up the full transition to a low emission bus fleet in England and Wales.”


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