As 2022 comes to an end, it’s time to start planning for 2023. With that in mind, Andrea Easton, Head of Finance and Operations at FleetEx shares a quick round-up of what to look out for in 2023.
The return of the HGV levy
Back in August 2020, the government announced a three-year suspension of the HGV levy. Nothing has been said about the suspension being made permanent. It, therefore, seems reasonable to assume that the HGV levy will return in August 2023 as originally planned.
What is not yet clear is whether it will return in its old form or be updated. The Department for Transport (DfT) has proposed streamlining the existing 22 payment bands down to just 6. The new bands and their proposed fees are as follows.
- Weight Category*Euro V1 or laterEuro V or earlier
- From 12 tonnes and up to 31 tonnes£150£195
- Above 31 tonnes and up to 38 tonnes£360£468
- Above 38 tonnes£576£749
*HGVs with trailers would pay on the basis of the combined weight of the vehicle and the trailer if the trailer weighed four tonnes or more.
According to the DfT, this would simplify administration while resulting in most operators paying no more than they did before. A few might pay more but some might pay less.
The government has indicated that it intends to charge the HGV levy on foreign vehicles. It will, however, be applied pro-rata and only when an HGV is driven on a motorway or an A road.
These proposals are currently in the consultation stage but seem highly likely to be implemented.
Ongoing efforts to tackle HGV driver shortages
Brexit means that EU nationals no longer have the default right to live and work in the UK. In late 2021, the UK government temporarily extended road haulage cabotage for six months. It also brought in a temporary visa scheme for EU HGV drivers. The former measure was to deal with general supply-chain pressures. The latter was basically to ensure that Christmas happened.
There currently seems to be no indication that either scheme will be introduced. There is, however, a possibility that HGV drivers will (finally) be added to the Shortage Occupation List (SOL). In August, Kevin Foster MP (at that time, Minister for Safe and Legal Migration) commissioned the Migration Advisory Committee (MAC) to review the SOL.
The review is expected to be completed by the end of March 2023. Any changes are expected to be implemented in autumn 2023. If HGV drivers are added to the SOL, it means that UK employers will be able to sponsor non-UK nationals for Skilled Worker visas.
Realistically, the likelihood of this measure being adopted probably depends greatly on the success of the UK government’s 33 actions to train more UK nationals as HGV drivers. In fairness, these measures have definitely produced meaningful results. The problem is that, as yet, they have not produced them fast enough.
The issue of IR35
The UK government has gone backwards and forwards on the issue of IR35 and the private sector. Right now, the official direction is forwards. On the other hand, the UK is due to have a general election by January 2025. This means that campaigning will effectively start around mid-2023.
Saying that IR35 is unpopular is putting it mildly. This means it is still possible that the government will backtrack on it as part of its election campaign. If they did, it might be easier to lure back at least some of the drivers who left the industry. They could buy the haulage sector time to train new recruits.
Expansion of clean-air schemes
London is due to expand its Ultra Low Emission Zone (ULEZ) in August 2023. Sheffield is due to implement a new clean-air zone at some point in 2023. Other cities are considering or constructing CAZs. It is also possible that existing CAZs will be expanded.
Expect to see lower speed limits
Wales and Oxfordshire have already rolled out blanket 20mph speed limits in built-up areas. This change has generated controversy. At the same time, it does square with the principle that roads are for everyone not just for motor (or electric) vehicles. It, therefore, seems very probable that other local authorities will become more willing to lower speed limits.
It’s unclear how much difference, if any, this will make to journey times. On the one hand, HGV drivers are very likely to drive below the permitted speed limit anyway. They will clearly understand that it’s a limit, not a target.
On the other hand, it could increase the number of vulnerable road users on the road (e.g., cyclists and horse riders). This could have major implications for road safety in general and the safety of HGVs in particular.
Potentially see greater regulation of self-driving vehicles
The government recently held a consultation on Back in April, the Department of Transport set out its plans for a “self-driving revolution”. These plans explicitly stated that the department intended to make changes to the Highway Code to improve the regulation of self-driving cars.
To that end, the Transport Select Committee held an inquiry into self-driving vehicles. This closed in August. It seems reasonable to assume that there will be some sort of action at some point in 2023. This action might not have any immediate, direct implications for the HGV industry. It could, however, still be worth noting.
Firstly, HGV drivers are affected by the behaviour of other road users. As yet, it’s still unclear what that means in the context of self-driving cars, but time will surely tell. Secondly, self-driving technology could be assimilated into HGVs. If (when) it is, it will have massive implications for the industry.
Roads may still get smarter
The development of new smart motorways is currently on hold. The implementation of Automated Lane Keeping Systems (ALKS) appears to be very much active. As yet, it’s unclear how hard the government will push for its rollout. Realistically, funding has to be an issue. On the other hand, the government may see it as an important investment in infrastructure.
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