Drivers Face New Environmental Taxes on Larger Vehicles

Starting this April, drivers of larger vehicles, particularly heavy goods vehicles (HGVs), will encounter new environmental taxes through higher Vehicle Excise Duty (VED) rates and increased HGV road user levies. These changes aim to better reflect the vehicle’s weight and environmental impact, ensuring fairness for operators while encouraging cleaner transport options.

The updated charges apply to UK and international owners and operators of HGVs weighing 12 tonnes or more, including those holding trade licenses. For example, lorries weighing over 44,000kg will now face an annual VED of £1,703, or £851.50 for six months. Cleaner Euro 7 vehicles benefit from reduced rates, paying £619 annually, whereas older, more polluting models will be charged up to £804.

Other key rates include general haulage lorries, which have seen their annual fees rise from £365 to £380. Lorries between 12,000kg and 31,000kg that meet Euro VI standards are charged £161 per year, while older vehicles in this bracket pay £209. For vehicles weighing between 31,001kg and 38,000kg, cleaner models pay £387 annually, with older models paying £503. The highest levy applies to vehicles over 38,000kg, costing £619 for Euro VI compliant vehicles and £804 for those that do not meet this standard.

Two-axle lorries weighing 15,000kg to 27,000kg pay £322 yearly. Additional charges apply for vehicles towing heavy trailers, with some combinations incurring up to £654 in VED annually. Smaller buses with up to 17 seats face a charge of £177 per year, mid-sized vehicles £240, and larger coaches between £350 and £530, depending on capacity.

HM Treasury confirmed that from 2025 to 2026, VED rates will be increased in line with the Retail Price Index to maintain the real value of receipts. This move ensures that motorists contribute fairly to public finances while promoting environmentally responsible vehicle use.