HGV Levy and Charging - untrr

HGV Levy and Charging

Objectives• Government manifesto commitment• Consulted upon Jan 12• Fairer payment for maintenance of road network• Vignette type scheme• VED offset for UK operators• Introduction date– April 2014 for UK registered HGVs– April 2014 for foreign HGVs (subject to procurementtiming for foreign HGV payment and enforcementsystem)• Communication with industry stakeholders

Bill Process• Royal Assent (primary legislation) granted• Statutory Instruments (secondary legislation)– traffic offence– financial penalties– weight restrictions– possible exemptions (N.I / R.O.I)• Ongoing refinement possible through finance bills

Scheme Basics• Applies to whole UK road network (inc N.I)• All HGVs12 tonnes and over• Time based payments (daily to annual - discounted)• Rates set on bands (axles / weight)• Daily charges from £1.70 to £10• Annual charges from £85 to £1000• Payment in advance of using UK road network• Introduction from April 14– UK registered HGVs - payment alongside existing VED– Non-UK registered HGVs - new Foreign Operator paymentSystem (FOPS)• Non payment a criminal offence• Levy is a tax• Modifications to VED rates and the existing RPC scheme to beannounced in Budget

Payment / Enforcement• Electronic payment/ enforcement• 3 rd party contractor - various channels• Registration in database• Live feed information• VOSA checks (DVA in N.I.) along with existingrequirements on vehicle roadworthiness, drivers hoursand safety regulations– manifest from UKBF– ANPR cameras• £200 on spot fixed penalty notice• Up to £5000 fine / impounding of vehicle• Database info publically available• Levy treated as 10 monthly instalments (discount notrefunded)

FOPS and Integration with EnforcementMultiple online and telephonepayment channelsPublic register ofpayments madeInternet & socialmedia awarenesscampaignPayment and datamatching databaseFerry manifests/ KentPolice ANPR at bothsides of entry toEurotunnelLive feedData on foreignHGVs entering andleaving UKReports to VOSA toassist risk basedenforcementLive feed of data on HGVsthat have not paid or not paidenough into ANPR systemGovernmentSecure Internet(GSI)

FOPS System DataflowWeb Phone / app Ferry / Eurotunnel UK portsFree-accessweb-based listof foreignhgvs for whicha current UKroad user levyappliesUK hgv road user levy collection contractorList of foreign hgv registrations thathave purchased a UK hgv road userlevy and duration of levyList of foreign hgv registrationsentering the UKUKBF datafrom ferrymanifestsUKBF Eurotunneltransit data viaANPRDynamic listof foreignHGV nonpayersforANPRtargetingList of foreignHGVs that arefrequent nonpayersor daydodgers fortargeting

Foreign User Payment ExperienceOperator or driver enters detailsRegistered userPay as you goLog-indetailsChannel selectedon-line | phone (non-internet enabled) | terminal)HGVregistrationselectedStartand enddate forlevyHGVregistrationHGV categoryselected frommenu (fromwhich chargeband derived)Start dateand enddate forlevyMeansofpaymentdeclaredCharge calculated for levy durationData consistency check with previous visitsAdditionallevy daysrequired tocompletejourneyPayment made (via account deduction / card payment) and transaction number providedHGV begins UK journeyJourney completed with period covered by levy

Impacts• Approx 260,000 UK HGVs• Approx 100,000 overseas HGVs (75% single annual trip,over 90% 40 tonnes gross weight)• UK 9 out of 10 no worse off– worst case £79 for smaller artics (brewery drays /urban supermarket)– worst case £300 for Rigid towing trailer– over half due to VED rates below minimum• 40 tonnes 5 axle vs 44 tonnes 6 axles• Existing tolls (bridges/tunnels/congestion charge) will bein addition (there are no UK toll roads)• Spreading the word – EU communications

Breakdown of levy purchases by Non-UK HGVsInitial analysis suggests the following split1 - 50 days (willmostly pay dailycharges)51 - 100 days (willprobably pay weeklyor monthly)100+ days (willusually pay annually)

Questions• How aware are international operators in yourcountry who make journeys to UK of the levy’sintroduction?• How are you intending to communicate thismessage more widely? What can we do to help?• In a world becoming more digitally and systemdependent, would there be a problem if therewasn’t a cash payment option?