Motor Vehicles: Excise Duties
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of increases in (a) vehicle excise duty and (b) the HGV road user levy on the logistics industry.
Answered by James Murray
As announced at Autumn Budget 2024, from 1 April 2025, Vehicle Excise Duty (VED) rates for Heavy Goods Vehicles and the Heavy Goods Vehicle (HGV) levy will be uprated by Retail Price Index for 2025-26. This means rates will remain unchanged in real terms for vehicle keepers.
The tax information and impact note published alongside the Budget when these changes were announced sets out the expected impact on businesses which own or sell HGVs, which is estimated to be “negligible”. The note also sets out expected economic, equalities and other impacts of the changes, which can be found here: https://www.gov.uk/government/publications/vehicle-excise-duty-rates-for-heavy-goods-vehicles-and-heavy-goods-vehicles-road-user-levy-from-1-april-2025
Revenue from motoring taxes helps ensure we can continue to fund the vital public services and infrastructure that people and families across the UK expect.
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