New Lorry Charges on UK Roads: HGV Drivers Face Increased Costs from April
Heavy Goods Vehicle (HGV) drivers across the United Kingdom are set to encounter new financial burdens on the roads, with increased charges scheduled to take effect from April 2026. The government has announced it will introduce legislation in the Finance Bill 2025-26 to uprate Vehicle Excise Duty (VED) for HGVs in alignment with the Retail Price Index (RPI).
Legislative Changes and Implementation Timeline
The Treasury confirmed that, as outlined in Budget 2025, the Labour Party government will proceed with legislative measures to adjust VED for Heavy Goods Vehicles. This uprating will correspond to the Retail Price Index for the 2026 to 2027 period, officially commencing on 1 April 2026. Concurrently, the HGV levy will also be uprated in line with RPI, with the same effective date of 1 April 2026.
These changes mark a significant shift, as VED rates for HGVs and trade licences have remained frozen since 2014. The HGV levy, which was reformed in August 2023 and subsequently frozen at the Autumn Statement 2023, will now see its first increase under this new policy.
Payment Responsibilities and Rate Determinants
The vehicle registered keeper holds the responsibility for paying Vehicle Excise Duty. The specific rates are determined by several factors, including the vehicle's revenue weight, axle configuration, and Euro status. Detailed rates for both HGV VED and the HGV levy are available in Annex A on the Treasury's official website.
Legal provisions underpin these charges: Section 1 of the Vehicle and Registration Act 1994 authorises the charging of VED, while Section 2 specifies that VED is chargeable based on rates listed in Schedule 1 of the same act. The HGV levy is established by the HGV Road User Levy Act 2013, with current rates detailed in Schedule 1.
Equality Impact and Demographic Considerations
Budget documents highlight potential equality impacts, noting that individuals liable for VED for HGVs are likely represented across various groups with shared protected characteristics. Where protected groups are overrepresented, the measure may disproportionately affect them.
For instance, males constitute 77% of licensed HGV owners, compared to 23% for females. This contrasts sharply with the broader UK adult population, where gender representation is more balanced. However, HM Revenue and Customs (HMRC) does not possess data on other protected characteristics of HGV registered keepers, limiting the ability to assess further equality impacts.
This development signals a notable increase in operational costs for the haulage industry, potentially influencing freight prices and supply chain dynamics. Drivers and companies are advised to review the updated rates and prepare for the financial adjustments ahead of the April implementation.
