As the EU agrees to extend the scope of the Eurovignette Directive, Sarah Simpson, Senior Associate at Bircham Dyson Bell LLP, considers that the UK Government, currently developing its own proposals for lorry road user charging, might be tempted to follow suit.
The Coalition Government has promised to introduce HGV charging by April 2014 to ensure 'a fairer deal' for British lorry drivers. UK Hauliers are considered to be at a competitive disadvantage to their European counterparts, who enjoy cheaper fuel and lower taxes. The Government's plans, due to be published this summer, are supposed to address this by imposing a levy on all vehicles using British roads, whilst offering UK vehicles fuel and vehicle excise duty rebates.
However the major challenge is to identify a viable structure for lorry road user charging which stacks up in monetary terms. Can a scheme generate enough revenue to meet set up and operational costs whilst delivering a tax neutral result for UK hauliers?
Against this background, the European Parliament has just endorsed important changes to the Eurovignette Directive, with which any UK charging regime must comply. These changes will have to be considered before any UK proposal can be implemented.
Currently, the Eurovignette Directive only permits charges to be levied to recover the costs of repairing road infrastructure and a daily maximum charge is set down. This reflects UK Government policy. However, Eurovignette III will allow member states greater flexibility to charge vehicles above 3.5 tonnes for the noise, air pollution and congestion they cause.
The changes have failed to deliver the mandatory ringfencing of funds raised, with member states being encouraged rather than required to invest 15% of revenue in sustainable transport infrastructure.
"Whilst it is not obligatory to impose charges on a 'polluter pays' basis - yet - the Government will no doubt look again at its lorry charging plans to see what revenue and environmental benefits a more flexible approach to charging might bring" concludes Sarah Simpson.
By contrast, the UK road haulage industry will be keen to ensure the Government holds true on its promise to deliver a 'fairer deal' for them".
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