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What do you get when you impose a daily fee on every foreign HGV? In theory, an awful lot of money being put into the treasury for the purposes of maintaining the roads. That is exactly what we were told when the Government first announced the new HGV levy that was officially implemented earlier this year. However, the BBC’s Richard Wescott posted an interesting question in a piece published on 23 October (2014): where will the money go?

Since April, the HGV Levy has raised some £23 million by charging foreign HGV operators between £1.70 and £10 per day. The amount collected thus far is already £3 million more than the Government had planned to collect for the first 12 months. Nevertheless, according to Wescott, the problem is that there is no way to know whether that money will really go to road maintenance or not.

He explains that the treasury collects the money but does not divulge what it’s being spent on. The Government could say it is pumping £23 million into roads but then turn around and use it to fund green energy or any other product for which it is running out of money. We are not suggesting that it is happening; we are simply saying it is possible.

As for UK hauliers, the implementation of the levy has created a more level playing field. Prior to the levy, UK transport companies operating in other countries were required to pay road usage fees while foreigners coming into this country were not. That made it more expensive for domestic companies to do business. Now that foreign companies are paying the levy here in the UK, they no longer have that competitive advantage.

The downside is that the cost of the levy is inevitably passed on to consumers. It has to be. Haulage companies cannot absorb every single cost increase and remain in business. They pass on their increases by way of higher prices that, in the end, translate to higher consumer prices.

Learn to Drive a Lorry

We will leave the economic impacts of the HGV levy to the experts. In the meantime, our number one priority at the HGV Training Centre is to help our students earn their commercial driving licences. We can teach you to drive a lorry, tipper truck, van, bus, coach, or other commercial vehicle. Our training programme is convenient, affordable, and quicker than many people expect. What does it involve? Here is a brief outline:

  1. Undergo a routine medical exam.
  2. Apply for your professional entitlement while preparing for the HGV theory test.
  3. After passing the theory test, take and complete practical skills training.
  4. Take and pass your final practical skills test to earn your licence.

That doesn’t sound hard, does it? It’s not. Especially when you train with a company such as ours. If you are ready to begin your career as a professional lorry driver, take the first step by contacting us at the HGV Training Centre.

Sources:

  1. BBC – https://www.bbc.com/news/business-29740059

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