Ministers are facing criticism over plans to increase Vehicle Excise Duty (VED) for heavy goods vehicles from April, with some MPs warning operators could see annual bills climb by more than £2,000. The rise, confirmed in last year’s Autumn Budget, will take effect from 1 April 2026 and will uprate lorry tax in line with inflation.
The changes apply to a wide range of commercial vehicles, including rigid trucks, articulated units and vehicles hauling trailers or abnormal loads. A 44-tonne lorry currently attracts an annual charge of £1,643. During Commons scrutiny of the Finance Bill, Shadow Exchequer Secretary James Wild argued that the system is already highly complex, with more than 80 different VED bands determined by weight, axle set-up and emissions standards.
MPs also pointed to wider financial pressures on the haulage sector. Industry figures estimate fuel duty alone adds over £2,000 a year to the running costs of a single HGV. Additional strains include higher wages, business rate changes and post-Brexit administrative burdens affecting trade.
Liberal Democrat MP Joshua Reynolds said repeated policy shifts risked placing further strain on a sector vital to the UK economy. However, Treasury minister Dan Tomlinson defended the move, saying the uprating merely maintains rates in real terms and provides certainty for businesses. He added that future tax decisions would be considered ahead of the next Budget, while fuel duty is due to remain frozen until August 2026 before staged increases begin.
