FTA responds to HGV Euro VI levy reduction plans

The FTA has given a mixed response to government plans for a 10% reduction in the HGV levy for trucks with Euro VI engines as of February next year.

In a statement the 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.”

The FTA gave the news a mixed review. Christopher Snelling, Head of UK Policy at FTA, explained why: “The reduction of 10% in the road user levy for Euro VI lorries is good news as it shows recognition for the success of the HGV Euro VI vehicles, which have 80% lower real world local emissions than previous lorries.

“However, the introduction of the increased levy on pre-Euro VI trucks will actually hurt those small and medium sized business that already face increased costs as they need to upgrade to Euro VI vehicle early to be compliant with the planned Clean Air Zones.

“It hurts them because the re-sale value of their slightly older lorries, the Euro IV and Vs, has fallen so much – making the jump to afford a new Euro VI so much greater.”

In the opinion of those at the FTA, lorries that meet Euro III and below should have an increase in the levy to get the very old trucks off the road, and this would in turn give a short term market for the less polluting Euro IV and V vehicles.