Select Committee on Environment, Transport and Regional Affairs Appendices to the Minutes of Evidence


APPENDIX B

KEY FINANCIAL FACTS AND FIGURES

EFFICIENCY

  1.  DVLA has demonstrated its success at implementing efficient working practices and exercising strict cost control by beating the Secretary of State's cost efficiency target every year for the last nine years. The following graph and table shows the pattern for the last seven years.




OPERATING COSTS

  2.  DVLA's operating costs to fund demand-led driver and vehicle business operations are arranged under the terms of the demand financing agreement with HM Treasury. The agreement allows DVLA demand-led variable costs to be flexed with business volumes. Non demand-led running cost expenditure is incurred on VED enforcement, sales of attractive registration marks, project developments and other minor activities. DVLA also provides funding for the operation of vehicle licensing and registration activities in Northern Ireland. The following graph shows DVLA's operating costs over the past seven years and demonstrates that as a result of tight budgetary control, underlying operating costs have remained relatively stable over the last seven years when compared to 1999-2000 prices. The operating costs of the Agency over the last seven years are summarised as follows:

Years
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
Staff costs
61
64
60
61
62
70
82
Contractors
119
115
122
133
127
131
139
Others—notional costs
6
6
5
7
5
10
8
Total operating costs (actual)
186
185
187
201
194
211
229
Total operating costs (in real terms)
216
210
207
217
204
216
229








ANALYSIS BY BUSINESS AND ACTIVITY

  3.  DVLA's total operating costs in the business accounts were £229 million (including graduated VED), which are broken down by business shown overleaf:





INVESTMENT

  4.  DVLA's main investment funding is for capital expenditure on estates and equipment and ongoing investment in the Agency's main business systems. The Agency maintains a rolling three-year capital plan which is used to determine the relative priority and affordability of capital schemes (including Northern Ireland schemes). The value of DVLA net assets has significantly increased over the years as a result of sustained investment in the modernisation of DVLA's business systems. The following graph and table shows the value DVLA's net assets and investment expenditure over the last seven years.





RECEIPTS

  5.  Receipts appropriated in aid of the vote arise from driver licensing activities (GB only), vehicles fee earning activities, charges levied on institutional customers for information services, and cost recovery proceeds from VED enforcement and sale of marks activities. Vehicle Excise Duty and surplus receipts are paid into the Consolidated Fund. The graph shows DVLA receipts over the last seven years. DVLA's income increased significantly in 1998-99 when the vehicle fee was introduced.





TARGETS

  6.  Two of the Department's Public Service Agreement (PSA) targets relate specifically to DVLA: the Secretary of State's key targets on efficiency and enforcement.The efficiency target of 2.6 per cent was exceeded (3.0 per cent achieved). The yield cost ratio target of 2.9:1 was exceeded at 3.0:1 in 1999-2000. Other PSA targets which DVLA shares with DETR(C) and the agencies include: a target on paying 95 per cent of undisputed invoices within 30 days (achieved 97.35 per cent); the Agency's contribution to the Government target of increasing the volume of business transacted electronically (100 per cent of transactions must be available electronically by 2005; and a target for reducing sickness absence from 3.8 per cent in1998 to 3.6 per cent in 2001 and to 3.3 per cent in 2003. Following the 2000 spending review DVLA's targets will form part of DETR's SDA targets not the PSA.

VEHICLE EXCISE DUTY

  7.  The VED collected by the Agency has steadily increased over the years:




  The apparent reduction in 1999-2000 is due to the timing differences in weekly cash payments from PONB. The 1998-99 figure is exaggerated by an additional payment in the last week of the financial year.

  Figures are net of refunds


 
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