Financial News
- 17 September 2012, 14:35
Foreign Truckers To Face UK Road Use Charge
Foreign truck drivers will have to pay £10 a day to use British roads by 2015, under new legislation revealed by the Department for Transport.
British HGV drivers are used to paying special road charges of up to £13 a day on the continent but their European counterparts pay nothing when they drive in the UK.
Transport Secretary Patrick McLoughlin said: "These proposals will deliver a vital shot in the arm to the UK haulage industry.
"It is simply not right that foreign lorries do not pay to use our roads, when our trucks invariably have to fork out when travelling to the continent."
It is estimated that 1.5m visits are made by foreign hauliers to Britain every year.
The new charge is expected to cost most drivers £1,000 a year.
British drivers will also have to pay the daily charge because of European laws but they will be able to claim it back against their road tax.
Industry groups have welcomed the new plans and they hope they will prevent foreign drivers undercutting British firms for domestic business.
Steve Bowles of Ray Bowles Transport told Sky News: "The fuel in their tanks is something like 20% cheaper.
"They buy their fuel in France, Germany, Belgium and it's so much cheaper and fuel is the vast majority of our costs. You can't compete with it."
Motoring organisations are more suspicious.
RAC Foundation Director Professor Stephen Glaister said: "After the administration costs the government reckons it might take in about £20m a year in net revenue.
"That's something like one fifth of 1% of all spending on roads in a year so it's not going to make much difference."
The AA is fearful that it could set a precedent for "pay by the mile" road charging for all motorists.
The Government hopes the legislation will be in place before the end of this Parliament.
Mr McLoughlin also told Sky News the government was looking into proposals for tolls to be introduced on the A14 and the raising of the speed limit on motorways.
He also reiterated Government support for the High Speed 2 rail network.
what do you think?
John Byrne
Something seems wrong here. British HGV companies will have to pay the £10 a day tax. But to quote the article they can claim it back against road tax. I would imagine, companies will want to keep trucks on the road every day. So if they can claim it back against their road tax, that suggests once its higher than the cost of road tax they won't be able to claim the rest back. As the RAC fear will it be a way of bringing in legislation so we all have to pay to use the roads on top of our road tax?
John Byrne
More bad reporting by Orange, the tax is £10 a day or a max of £1000. Is this limit just for the UK vehicles or for the continental ones too?
Jonathan Goodwin-Self
If we pay £13 a day in Europe then they should pay the same here plus a further £1 for each litre of diesel in their tanks. UK lorries are only allowed 1 fuel tank but foreing lorries can have 2/3 or 4 tanks. This should be charged today not in 3 years.
Paul Grice
It's more than over due and it should be £20/day
Christopher Hodson
We will be out of business at this rate, It will not do anything to ease the problem in rip off Britain. We will see an increase in the price of goods. This should be opposed as at the end of the day the consumer is the one that will get hit. If the transporet industry has an issue with taxation they should be getting the government to make things equal in the UK. If we were not so over taxed and dropped down to the rest of Europe then you would not be considering this protectionism that we condem other countries for doing this.
David Cooper
These rules should come into force at midnight on the 16/17th September
herewegoagain10
Given that a modern truck, say three axle 23 tonner, pays tax at about £250 per year it will be difficult claiming back the £3k its going to cost.
Michael Booth
Strange how a picture of 2 UK registered trucks should be used for a story about foreign truckers.......
Name witheld
This comment has been removed for violations of our Terms and Conditions.
Emma Barrett
we should charge them £15 a day, and this should be implemented immediately
ali baba
They want to make Britain more competative. So why are they charging British truck drivers?? One thing charging foreign trucks, but charging ur own drivers to make them more competative is a total contradiction.
gengisken1227
EU competition rules ali, but hey, at least the bananas are of the correct curviture
gengisken1227
British companies have for years been trying to compete against impossible odds and up till now our UK government ignores it - yeah, that sounds about right
t.bulgin
Yes, Its taken ages. At least we are doing something now.
Stuart Harley
...HS2 ..... AN EXPENSIVE WHITE ELEPHANT.......SO I HAVE TO GO BACK INTO LONDON BY OLD SLOW TRAIN, TO CATCH A FAST TRAIN NORTH AND SAVE .............NOT SAVING TIME OR MONEY !!
Keith Harrison
charging foreign freight companies to use our roads seems like a good diea ,but it will just push up the price of goods even more !!
shirley sutton
about time but why 2015 why not sooner - they over run the roads and most of the trucks are dangerous with bald tyres etc - need to level the playing field and impound their vehicles if not fit to be on our roads
t.bulgin
If you think about how long its taken to get this far then 2015 is like next week in comparison.
stephen
next all car drivers must pay £10 day
Alan John Jefferies
Again some people fail to understand the whole story and what it can and will mean. The EU will insist that all EU based drivers whilst in England are treated the same as UK based drivers. So the get your money back off lorry tax will be prohibited. All the extra drivers pay will be passed on to us the public. The motorway charges paid by British drivers overseas are paid by local drivers too but their lorry tax is much much lower. And of course their fuel duty is far lower. The places them in a better situation financially and more able to be competitive.. It would have been better for truckers to have had duty on diesel slashed this would have helped more businesses than anything else. Clearly truckers need to clarify the situation with the EU but I'll bet that the offsetting against a local tax will be deemed illegal. Then the government will claim its not their fault and carry on charging twice, the £10 a day and high lorry tax. who would want to own a trucking business??
t.bulgin
At last. This has been an issue, in my memory, going back as far as the Major government. We really do move fast in this country. I never could understand why our truckers where penalised in this way. Its not as if they don't pay through the nose as it is.
Louise Smith
AT LONG LAST. IT SHOULD BE £20 PER DAY THOUGH. A BIT OF SENSE AT LAST
happymike CHESTER
This is way overdue and should be implemented NOW.
john lonsdale
5:34am on 16/9/2012
WHATS GOOD FOR THE GOOSE IS GOOD FOR THE GANDER.