EU threatens court action on levy to aid UK truckers

THE European Commission is threatening legal action against the Government over a road charge designed to help British truckers compete with foreign rivals.

David Cameron faces a humiliating row in Brussels ahead of the referendum after it emerged that a dispute over the right to give British firms preferential treatment may lead to the European Court of Justice and possibly a hefty fine.

A leaked letter from Dr Martin Selmayr, the Commission president’s chief of staff, reveals plans to launch infringement procedings over an HGV levy that is said to breach EU equality laws. It will provide ammunition to Brexit campaigners, who argue that European law is tying the hands of ministers.

The 2014 HGV levy was described by Patrick McLoughlin, the Transport Secretary, as a “massive boost” to Brit- ish hauliers under pressure from foreign rivals. It was designed to compensate for levies and tolls that British lorries pay when travelling overseas. The outlay, ministers argued, puts obstacles in the way of British firms doing business on the continent that aren’t faced by overseas operators in the UK.

Under the policy, all HGVs pay up to £10 a day to use the roads. But this is then discounted, meaning that in effect British-registered drivers are no worse off while foreign trucks are hit.

The EU is vigilant about attempts to use the tax system to shield national industries from foreign competition.

“The commission has notified the UK that it has not provided sufficient proof to allay these concerns,” said Dr Selmayr. “Therefore the EU Commission is preparing an infringement procedure, following the failure of exchanges with the UK authorities.”

A government spokesman said: “We believe our levy is justified and consistent with the free movement of goods.”