Key points
- Fuel duty raised about £24.4bn in 2024/25.
- The OBR expects receipts to halve during the 2030s and fall close to zero by 2050/51.
- The Road Pricing Coalition brings together the RHA, Logistics UK, BIFA, BVRLA, the Chemical Business Association, the British Association of Removers and the Construction Plant-hire Association.
- Its five principles include fair treatment of UK and overseas operators and avoiding overlapping charges.
- Pay-per-mile for electric cars (eVED) starts in April 2028; vans and HGVs are out of scope for now.
A shrinking source of tax
According to the RHA, fuel duty raised around £24.4bn in 2024/25. The Office for Budget Responsibility expects these receipts to halve during the 2030s and get close to zero by 2050/51 as more vehicles switch to electric.
In the short term, fuel duty still matters for hauliers. The headline rate is 52.95p per litre, and the OBR forecast assumes the temporary 5p cut will be phased out by March 2027. trans.info calculated that the planned increases could cost £2,325 more per lorry a year.
Seven associations, one voice
The coalition was launched on 19 October and brings together:
- Road Haulage Association (RHA),
- Logistics UK,
- British International Freight Association (BIFA),
- British Vehicle Rental and Leasing Association (BVRLA),
- Chemical Business Association,
- British Association of Removers,
- Construction Plant-hire Association.
“It is vital that the voice of commercial vehicle users is heard by Government,” the RHA said.
Five principles for paying for roads
In its report “Paying for our Roads”, the coalition says any future road pricing system should:
- involve businesses throughout design, testing and introduction,
- support growth, competitiveness and decarbonisation,
- treat commercial road users fairly, including both UK and overseas operators,
- give businesses certainty and time to adapt,
- coordinate charging systems to avoid overlapping charges and unnecessary complexity.
Why foreign trucks matter
The third principle is especially important for UK hauliers. Foreign trucks that fill up on the continent pay little or no UK fuel duty. Their main contribution to UK roads is the HGV Road User Levy. A distance-based charge could close that gap, but only if it applies equally to all trucks on British roads.
The fifth principle reflects concerns about paying twice. Operators already pay vehicle excise duty, the HGV levy, fuel duty and, in some cities, clean air zone and congestion charges. Logistics UK has long warned that any road charging policy must avoid double taxation.
Pay-per-mile has already started for cars
The debate is no longer theoretical. The government has confirmed that Electric Vehicle Excise Duty (eVED) will start in April 2028. Drivers of fully electric cars will pay 3p per mile and plug-in hybrid drivers 1.5p per mile, with rates rising with CPI from 2029-30. Vans, buses, coaches and HGVs are out of scope at the start.
That leaves an open question for freight: how will electric vans and trucks pay for road use once they no longer buy diesel? Across Europe, distance-based truck tolls are already common, and many of them are changing in 2027.
Budget asks
Alongside the coalition, the RHA has set out its own Budget requests:
- keep the HGV Vehicle Excise Duty holiday and freeze the HGV Levy,
- introduce a 15p per litre Essential User Rebate for haulage, coach and van operators,
- freeze fuel duty, cancel planned increases and remove the link to RPI.
For hauliers, the message is clear: road pricing is coming, and the industry wants to help design it rather than simply pay for it.
