DVLA evidence to the Environment, Transport
& Regional Affairs Committee
5.1 AIM, KEY
5.1.1 The Agency's primary aims which contribute
to DETR and broader Government objectives are to:
facilitate road safety and general
law enforcement by maintaining registers of drivers and vehicles;
collect taxationVehicle Excise
5.1.2 In support of its aims the Agency
has the following objectives;
to deliver its primary aims and associated
tasks efficiently and fairly;
in line with the principles of Modernising
Government, to identify customer needs and to provide good service
to customers within the resources available;
to work closely with other Driver,
Vehicle and Operator [DVO] and Departmental organisations and
with other agencies of Government as appropriate to promote joined-up
to contribute to the formulation
and achievement of Government policies;
to improve the effectiveness of its
services and the efficiency of its use of resources;
to meet the performance targets set
out each year by the Secretary of State.
Principal Responsibilities and Main Tasks
5.1.3 The Agency:
sets up and records amendments to
records of drivers and vehicles to meet the needs of law enforcement
agencies and others with a legitimate right of access;
issues and (where appropriate) withdraws
issues registration documents and
annual vehicle licences to vehicle keepers;
issues vehicle registration marks,
and is responsible for the sale of special marks;
collects and enforces VEDlast
year the Agency collected VED amounting to £5 billion (gross)
and £85 million in fines, penalties and induced relicensing
from enforcement activities.
5.1.4 DVLA's driver responsibilities apply
to Great Britain. Driver licensing in Northern Ireland is covered
by a separate agency, Driver and Vehicle Licensing Northern Ireland
(DVLNI), responsible to the Department of the Environment for
5.1.5 The overall responsibility for licensing
and registering of vehicles and the collection of VED in Great
Britain and Northern Ireland lies with the DETR Secretary of State.
These functions are discharged on DETR's behalf in Northern Ireland
by DVLNI, and the arrangements are covered by an agreement between
DETR and Department of the Environment for Northern Ireland. The
agreement is kept under review and revised as necessary to take
account of developments.
5.1.6 Although not responsible for day to
day operations in Northern Ireland, DVLA works closely with DVLNI
and provides active support on vehicles, drivers, enforcement
policy and operations. DVLA has a seat on the DVLNI Ministerial
5.1.7 Examples of support include close
co-operation on the replacement of the Northern Ireland vehicles
system and the introduction of graduated VED. DVLA and DVLNI worked
together on the introduction of the plastic photocard driving
licence. DVLA has provided a great deal of support to DVLNI in
tackling the VED evasion problem in the Province and DVLA has
also played a part in facilitating cross-border discussions in
Ireland on vehicle related issues.
5.1.8 The Chief Executive and Accounting
Officer (Clive Bennett from 1 October 2000) is directly accountable
to the Secretary of State for the day to day running of the Agency.
5.1.9 The Chief Executive is a member ofthe
Ministerial Advisory Board sitting alongside officials from DETR(C)
and an external appointee. The Board meets three times a year
to review progress and to advise Ministers on target levels.
Scale of the business
|VED collection UK (gross)||4,700
|of which spend by service requirement is
|Vehicles (including NI and VED enforcement)
|Others (including SOM)||9.2
|Or alternatively spend by delivery method is
|| || ||
|Other external contracts and supplies||126.8
|Internal costs (mainly salaries)||62.3
|Notional Costs (depreciation, cost of capital, departmental on-costs)
|% of costs covered by receipts||0.54
|Others (including out of court settlements and court costs)
|Receipts paid directly to the Consolidated Fund
* Vehicle fee for first registrations introduced.
** Sale of mark receipts were removed from operating income
|Total STAFF (full time equivalents):
|Total transaction Volumes (millions)
|of which|| ||
|Other vehicle transactions||31.4
5.1.10 Other Key Figures.
30,000 phonecalls a day (seven million a year)
to the Customer Enquiry Unit alone;
77,000 e-mails received per annum;
38.2 million Drivers Records (5.5 million provisional);
28.4 million licensed Vehicles Records
750 million microfilm images held
613 thousand prosecutions (and out of court settlements).
5.1.11 To give a broad sense of scale, a policy change
which "only adds a couple of seconds to each transaction,"
means (on circa 80 million transactions pa) 30 extra staff at
a cost of around £400,000 a year ie £1 million for every
5.2 PERFORMANCE AGAINST
5.2.1 The Agency has been set Public Service Agreement
targets on efficiency and enforcement. In addition, the Secretary
of State also sets the Agency targets on customer service and
quality. In 1999-2000, all but two of the ten targets were achieved.
These targets will be increasingly hard to meet while at the same
time introducing the tighter validation requirements (for registration
and licensing) put forward by the Vehicle Crime Reduction Action
Team (VCRAT) as part of the plan to meet the target of reducing
vehicle crime by 30 per cent in five years.
5.2.2 The levels of telephone enquiries grew by 14 per
cent in 1999-2000, largely due to the introduction of photocard
licences and follow-up enquiries with regard to original documentation.
The demand for answers to enquiries by e-mail is also growing
rapidly. Most enquiries count as an overhead, and their cost has
a direct adverse effect on efficiency.
Public Service Agreement [PSA] Targets
5.2.3 For 1999-2000 the Agency was set the following
Secretary Of State Customer Service Targets
5.2.4 The range of transactions are set specific and
demanding customer service level targets. These targets are kept
under close review by the DVLA Ministerial Advisory Board which
has set tighter targets for selected transactions.
Performance against Secretary of State Targets
|Customer Service Targets||
||Year to Date|
|Accuracy (% without DVLA Error)
|Vehicle Registration Document: First registration
|Changes (keeper etc) ||Target
|Turnround (95% in working days) working days)
|Driving Licences: Ordinary||Target
||10 days||10 days
||10 days||10 days
||10 days||7 days
||9 days||9 days
||9 days||8 days
||8 days||8 days
||9 days||9 days
||9 days||9 days
||9 days||7 days
|Vehicle Registration Document: First registration
||12 days||12 days
||12 days||12 days
|Changes (keeper etc) ||Target
||13 days||13 days
||13 days||12 days
||12 days||12 days
|Enquiries (% answered)|
|Telephone (in 30secs)||Target
|Written (in 8 days)||Target
Performance to date in 2000-01
5.2.5 All targets have been met to date except for ordinary
driving licences and changes to registration documents. The ordinary
driving licence target is unlikely to be retrieved by the end
of the year. The backlog of driving licence applications was around
180,000 during July and August. This is as a result of the introduction
of the new photocard system and the requirement to check original
documents to verify identity. The Agency is taking measures to
address the difficulties, including making significant changes
to workflow methods and the position is improving. The target
for changes to vehicle registration documents falls just short
of target (12 days) but the position is likely to be retrieved
by the end of the year.
5.2.6 The Agency's Customer Enquiry Unit has been under
severe pressure, particularly with regard to driver enquiries.
The year to date performance is 93.3 per cent compared with the
target of 94 per cent. The knock-on effect of the backlog in the
drivers operational areas and the failure to meet turnround targets
for ordinary driving licence applications is creating an excessive
customer demand that the Unit is currently unable to handle satisfactorily.
A number of special measures have been taken to improve the situation
including additional training and extended opening hours.
5.2.7 The Agency has set the following charter standards:
||1999-2000||Year to Date
|Ordinary driving licences||3 weeks
|(100% of cases within)||
|Aim to complete work||
|Ordinary driving licences||5 weeks
|Vocational driving licences||7weeks
|80% of cases within no of working days
|ODL first application||41 days
|ODL notification of medical condition||37 days
|VOC first application||28days
|VOC notification of medical condition||65 day
5.2.8 Charter Standards have been maintained satisfactorily
during the period to date with the exception of the drivers medical
area where high staff turnover, IT system problems and some inefficient
processes contributed to this position. Work is being undertaken
in these areas to reduce the backlog and improve on the amount
of time taken to process applications in this area.
5.2.9 DVLA's track record in meeting customer targets,
both customer service and operational efficiency, has generally
been good. Past market research indicates that customers are content
with most aspects of DVLA service. Where a customer is dissatisfied
(less than 0.003 per cent of transactions result in a formal complaint)
DVLA is open to receiving and dealing with complaints. An internal
code of practice for dealing with complaints has been introduced
for staff at the Agency and a leaflet "If things go wrong"
advises customers of the procedures to follow.
5.2.10 The Agency is presently undertaking new market
research to measure current levels of customer satisfaction. The
Agency will use the information provided as an internal benchmark
to consider whether existing standards are felt to be satisfactory
or require tightening. Initial findings from the survey suggest
that the vast majority of customers (89 per cent) are generally
satisfied overall with the service provided by DVLA (four per
cent are dissatisfied).
5.2.11 Customer service can be affected by a rapid growth
in demand or if the Agency is constrained by statute. It can be
difficult to recruit staff (particularly specialist staff like
doctors) and there is a time lag in providing training. Over the
years customer expectations have also changed so that they require
an immediate response via the telephone or e-mail. This is prompting
DVLA to look at new service delivery methods.
5.2.12 The Agency's Efficiency Unit co-ordinates and
quality assures the programme of Better Quality Service Reviews.
All of the Agency's functions and services will be reviewed over
a five year period. The focus of the reviews will be to demonstrate
through benchmarking with other service providers that the Agency's
services either are, or can be brought up to, best in class. The
first phase of reviews, which are either in the planning or information
gathering stages, include Drivers Medical, Development Directorate,
Despatch, Customer Enquiry Unit and Training and Development Group.
Managers and staff. The Trade Union is also closely involved in
these reviews (see also 5.4.7).
5.3 IMPROVEMENTS IN
5.3.1 As confirmed by the Public Services Productivity
Panel study, Customers in the Driving Seat issued on 25
January 2000, the Agency has a track record to be proud of in
achieving significant successes in customer care. It strives continuously
to deliver a first class service to all its customers. The Agency
trains staff to act in a customer-friendly manner and givea high
standard of service. The Agency aims to do business as if the
customer has a choice, and could take their business elsewhere.
Further Improvements to Customer Service
5.3.2 The Agency plans further improvements in productivity
and levels of customer service.
5.3.3 Many of these improvements are dependent on the
introduction of new technology particularly in areas such
as electronic relicensingand on changes to legislation.
For example the electronic relicensing rollout to a wider audience
depends on the introduction of national motor insurance and MOT
databases as the current system requires sight of a valid insurance
document and MOT certificate before a licence can be issued. This
new service rollout is due to start in mid 2002.
5.3.4 The Agency was first awarded the Charter Mark in
1993 for excellence in the delivery of public service. When it
expired in 1996, the Agency reapplied and was again awarded the
Charter Mark for the whole Agency including the Local Offices.
In August1999, DVLA was awarded the Charter Mark for the third
time in succession, thereby demonstrating almost a decade of continuously
improving service to the customer and prompting the assessor to
comment that, "DVLA works hard to deliver good customer service".
5.3.5 The Government's White Paper on Modernising Government
reflects the approach that DVLA has always taken to improve the
quality of services provided to its customers. Central to the
Government's programme of renewal and reform is its commitment
that policy making is more responsive to people's needs by ensuring
that services are more "joined-up" and make full use
of new technology. These policies facilitate DVLA's strategy of
using technology to improve efficiency and customer service. The
Agency already has examples in place, for example the Fleets and
Automated First Registration and Licensing schemes and the pilot
electronic relicensing scheme.
5.3.6 The creation of the DVO Strategy Board is also
helping to accelerate closer collaboration between DVLA and other
agencies and public bodies (see section 5.4).
5.3.7 Further details of these and other initiatives
that the Agency has undertaken in recent years are provided in
Protecting Data and the Individual
5.3.8 While making full use of new technology the Agency
has a duty to protect the records on the main Driver and Vehicle
databases. Operating systems are designed so that only staff with
a user identification and password have access. There are monitoring
facilities used to check the activities of authorised staff. The
system keeps an automatic record of who accesses or amends any
5.3.9 Unauthorised access from outside the Agency is
highly unlikely because direct external links to DVLA's databases
are limited and are strictly controlled. DVLA's current links
to the internetpotentially the most serious external threat
of unauthorised accessare currently via stand alone PCs
so there is no possibility of unauthorised access to records from
this source. This situation will change when DVLA links its network
to the Government Secure Intranet [GSI] because GSI includes an
Internet link. The work of the IT security team is already at
an advanced stage in implementing a firewall to protect DVLA systems
from outside attack when the GSI link is implemented.
5.3.10 Maintenance of DVLA's main databases and supporting
IT processes is out-sourced to EDS, a company security cleared
for the provision of IT services to Government Departments.
Data Protection Commissioner
5.3.11 In addition to the technical safeguards, the Agency
works closely with the office of the Data Protection Commissioner
so that data is processed lawfully and that, as far as possible,
individual privacy is maintained. This helps to ensure that the
Agency works within the principles of data protection legislation,
and that occasional complaints are dealt with quickly and effectively.
5.3.12 The Agency's data can be used legitimately for
purposes outside those of registration and licensing. Whilst access
to the Drivers record is restricted mainly to the police, the
Vehicle register is a semi-public record. Consequently, the Agency
has to preserve a delicate balance between the interests of those
who wish to obtain information and those whose details it holds
for specific purposes. Each application is considered carefully
before information is released, and there are extra precautions
taken to safeguard the security of people who can demonstrate
that they might be at particular risk.
5.3.13 Concern has been expressed over there lease of
information to car park enforcement companies who make use of
cameras and fixed penalties. Legal advice indicates that enquiries
from such companies fall within the "reasonable cause"
criteria. The Agency is working closely with the companies concerned
to improve and clarify working practices. This includes drawing
up a code of practice andrevising forms to ensure that the public
is not confused.
5.4 DVO STRATEGIC APPROACH
5.4.1 The Driver and Vehicle agencies (DVLA, DSA, VI,
and VCA) have always worked together on issues of common interest.
This co-operation was strengthened by the creation of a DVO Strategy
Board in January 1999. DVLA is an enthusiastic member.The Chief
Executive is a member of the Strategy Board and the Agency has
staff on secondment to the Task Force.
5.4.2 The DVO Task Force is taking forward work to identify:
areas of particular competency;
opportunities for shared learning;
how far agencies should develop their own expertise
on specialist skills such as Better Quality Services (BQS) or
work with other agencies. The DVO Task Force is taking forward
work to identify areas of particular competency and opportunities
for shared learning:
5.4.3 DVLA has taken the lead in a number of key DVO
DVO IT Strategy and DVLA's ITCON Project
5.4.4 DVLA has a major project team [ITCON] preparing
for the re-tendering of the IT contract which is due to expire
on 31 March 2002. This presents opportunities for joining up aspects
of cross-DVO Information Systems/Information and Communication
Technology [IS/ICT] throughout the life of the new contract. DVLA
is consulting with the other organisations and is encouraging
full participation in identifying the potential scope of the procurement.
5.4.5 The DVO IT Network Group is examining the implications
of the DVLA ITCON project and future DVO procurements on the IS/ICT
policies of all the DVO organisations. An outline DVO IS/ICT Strategy
Plan is being drawn together with recommendations on the way forward.
5.4.6 Process mapping involves identifying and recording
(usually in the form of a flowchart) the logical path of the various
activities which contribute to a defined process. As part of the
DVO initiative process mapping is being undertaken to try and
identify ways in which issues can be brought together to lead
to improved customer service and the delivery of electronic government
and joined up government.
5.4.7 An example of this process at work is provided
by the personal import of a vehicle. Initial assessment uncovered
the number of separate agencies and transactions an individual
is faced with leading to confusion and some duplication of effort.
To resolve this a project has been set up to look at the possibility
of setting up a "one stop shop" which could deal with
all aspects of the import process.
Centre of Excellence
5.4.8 DVLA's work on BQS is well advanced. At the request
of DETR Corporate Business and Agencies Division the Agency's
Efficiency Unit [EU] has given a presentation to representatives
from other DETR Directorates and Agencies on DVLA's planning process
and methodology for taking forward the BQS review process. The
Cabinet Office's Public Sector Benchmarking sector is keen to
publicise the Agency's approach to demonstrate best practice.
As part of the DVO Task Force initiative on sharing best
practices the Agency has provided details of its BQS programme
and invited the agencies to participate in common interest reviews
such as enquiry handling and training.
Cross agency joint projects
5.4.9 These are routinely reported to the DVO Board.
DVLA is currently the lead agency on the following initiatives:
|Importing a vehicleprocess re-engineering
|Imported vehicle fraud||VI, DVLNI
|Imported vehicleregistration of new imports by independent commercial operators
|National Trailer Register||VI
|Use of cameras for enforcement||VI
|Graduated VED (publicity campaign)||VI, VCA, DETR
|Graduated VED websitelinks between DVLA & VCA website
||Joint venture with VCA|
|Call handlingre-direction of calls between DSA and DVLA
||Joint venture with DSA|
|Electronic Licensing for the Disabled||BA
5.4.10 A specific example of a new area for further co-operation,
which will involve DVLA, VI, TAN and DSA, is on enforcement.
5.4.11 The DVO Strategy Board is keen to develop a coherent
strategy throughout the DVO businesses on enforcement. Whilst
all DVO agencies have strategies and objectives to deal with their
individual enforcement business, they share a common objective
of improving road and vehicle safety. DVLA is concerned also with
revenue collection and enforcement and record accuracy. Some joint
working between DVO agencies in the enforcement field already
takes place. However, the nature of VED evasion (the need to spot
the unlicensed vehicle on the public road) means that the main
current area of co-operation is between VI and DVLA.
5.4.12 The next step will be the setting up of a working
group comprising representatives from the enforcement units of
each of the DVO agencies. This team will encourage the establishment
of cross agency seminars and workshops where enforcement "experts"
can discuss issues, best practice, learning experiences and shared
5.5 MODERNISING GOVERNMENT
A Better Deal for Staff
5.5.1 The Agency has completed negotiations on the annual
pay award; the seventh since taking pay delegation from the Centre.
This year's award introduced a new Agency incentive scheme which
will pay a non-consolidated bonus performance to all satisfactory
performers. The bonus will be paid on the Agency's overall performance
in each year. Affordability has always been a key determinant
in setting the level of the pay award (which is performance based)
together with public sector pay policy. Recruitment and retention
problems are factors, particularly in some areas.
5.5.2 Recruitment and retention is a particular issue
for the Agency in some local offices and in the Swansea call centre
where local call centres threaten the Agency's ability to recruit
and retain quality staff. In the network the problem is one of
comparison with other departments and agencies resulting in a
high turnover in staff in some areas, particularly where DVLA
offices are co-located with other departments. Other organisations
such as DETR(C) can afford to increase their starting salaries
for basic grades quite significantly because they have very few
staff in these grades. By contrast, DVLA has large numbers of
staff in these lower grades and therefore any increase in starting
salaries is expensive.
5.5.3 The Agency is addressing the problem in two ways.
A group has been set up to benchmark recruitment and retention
practices against those of other organisations considered to be
particularly effective in this field and the lessons learned will
be applied to Agency procedures. Also a Pay and Grading Review
is underway which is considering recruitment and retention alongside
a number of other pay related issues. The results of the Review
are expected in the New Year with the intention of starting to
implement its recommendations as part of the 2001 pay round.
Health and Safety
5.5.4 The Agency is recognised as a leader in the field
of workplace health promotion and has received several awards
and accolades in recognition of its commitment. Special attention
is paid to employees who are exposed to particular health risks
in the course of their work. For example, virtually all the Agency's
staff use Display Screen Equipment [DSE] and the Agency complies
fully with The Health & Safety (Display Screen Assessment)
5.5.5 Considerable effort is spent to minimise the risk
of Work Related Upper Limb Disorders [WRULDs] and the Agency:
has a network of trained DSE Assessors, supported
by the Health & Safety and Environmental Advisory Unit, who
carry out comprehensive DSE assessments and advise best practice;
provides employees with suitable training, information
ensures managers and staff understand the need
for prevention and the importance of early diagnosis;
ensures that staff take regular breaks orchange
takes prompt and appropriate action when WRULD
related problems are identified eg a change of job.
5.5.6 All reported, medically supported cases of WRLUD
are noted in a register held by Personnel Directorate. The Agency's
Occupational Health Adviser (based at Swansea) is available to
discuss problems and, where appropriate, suggest remediesnot
only on this but all health issues. In addition, health issues
are raised at the joint official and trade union, Health &
Safety Committee, which meets quarterly.
5.5.7 The Agency has a network of trained Harassment
Contact Officers [HCOs] and there is an HCO available within reasonable
travelling distance of all staff.
Graduate Recruitment and In Service Training
5.5.8 The Agency is taking forward a range of initiatives
including a new graduate recruitment scheme aimed at bringing
new talent into the Agency and developing those selected along
a well-defined fast track. This will offer a structured development
programme benchmarked against national standards to encourage
individuals to achieve their potential. The Agency is already
an NVQ assessment centre for some awards and is planning to extend
into other areas. DVLA is also working towards becoming an accredited
centre with the Institute of Management. These developments clearly
support the Civil Service Reform agenda of bringing in and bringing
on talent and marketable qualifications. We are piloting the use
of Assessment and Development Centres as part of the Agency's
recruitment, selection and development process.
Investors in People
5.5.9 The Agency achieved Investors in People status
at the end of November 1999at the first attempt. The national
assessor was particularly impressed by the Agency's commitment
to training and developing staff, the range and scope of training
anddevelopment opportunities and the comprehensive way in which
benefits and value for money are evaluated. Improvement areas
were identified and an action plan has been agreed and is being
implemented. The Agency has opted for annual IiP assessment and
the first is planned for April 2001.
5.6 PRODUCTIVITY PANEL
REPORT: DVLA CALL
5.6.1 DVLA was one of three transport agencies subject
to scrutiny by the Public Services Productivity Panel (PSPP).
The PSPP report suggested the need for some improvement but did
identify a "wide range of good practice" from which
other agencies might learn, including "clear leadership",
"commitment to customer service", "robust business
planning", ensuring that customer service policies are consistently
"applied nationwide", and "good quality training".
5.6.2 The report said that "all three (agencies)
have made real progress in developing customer-focused services"
and referred to DVLA's "high quality services to users".
5.6.3 DVLA discussed its difficulties with the Productivity
Panel and highlighted the problems it was experiencing in expanding
its drivers enquiry centre to keep pace with the very rapid rate
of growth in telephone calls, particularly at peak times of day.
Following the review the Productivity Panel Report set down a
target on the telephone line "engaged" performance.
This was to reduce the proportion of the day when all lines were
engaged to 10 per cent by 31 March 2000 and to 4-5 per cent by
5.6.4 The Agency achieved the 31 March target of 10 per
cent. For the period from the end of May through June, July and
August the total line availability performance has been 89 per
cent. The workload in the Agency's Call Centre has increased significantly
in the past months, particularly over the summer period. There
has been 20 per cent increase in calls and a 30 second (approximately
20 per cent) increase in call durationlargely from customers
chasing progress on their photocard driving licence applications
and/or return of their passport or other identity documentation.
Initiatives to Improve Performance: Immediate actions taken
5.6.5 A number of procedural and technical improvements
have been implemented to enhance the Agency's call handling ability.
Despite the fact that the financial regime does not allow additional
funding to handle the increased workload additional staff are
already being trained to support the Drivers area. Special recruitment
action is being taken to extend permanently the opening times
of the Call Centre from 0800 hours to 2030 hours on weekdays and
to provide an all-day Saturday service when lines will remain
open until 1730 hours.
Introduction of an "Over the Counter" Service
5.6.6 DVLA is required to check original identity documents
before issuing photocard driving licences. Until recently these
have had to be sent with the applicationby post. An "over
the counter" photocard licence checking service was introduced
in mid-June which involves the documents being checked at the
post office counter and handed back to the applicant. This was
intended to relieve some of the pressure on the Agency's call
centre from drivers telephoning the Agency about their original
documents. Although some benefit is emerging from the PONB checking
service, the full effects will only be obtained if the service
has national coverage. An extension to the current 218 offices
to include the remaining 364 branch offices is due to take place
in November. Current indications are that the scheme is proving
popular and we are working with PONB to ensure maximum benefit.
5.7 FINANCIAL REGIME
5.7.1 The Agency operates within the overall DETR departmental
expenditure limit. Cash expenditure and appropriated receipts
are subject to public expenditure controls and supply procedures.
5.7.2 As part of the Agency's annual business planning,
DVLA, DETR (C) and Treasury agree the targets and work programmes
that can be delivered within DVLA's agreed cash settlement. These
take into account forecast business volumes, the agreed efficiency
target and other commitments and pressures. Within DVLA's overall
cash settlement, activities that are led by customer demand are
funded under the terms of a demand financing agreement with Treasury.
5.7.3 When fee income and sale of marks revenue (but
not VED) is taken into account, income is broadly in line with
costs without needing a direct charge on the general taxpayer
(see 5.1.8). However, the income is not closely aligned to cost-generating
Driversregulations require replacement
licences (eg for change of address) to be issued free, so their
costs are carried by increased fees on other driving licences.
These cases make up around 40 per cent of the total.
Vehiclesfees are collected at first registration,
which can be volatile, whereas costs are mainly incurred on annual
relicensing for which we are prohibited from charging a fee.
Enforcementis vote controlled.
Sale of MarksDVLA cover costs with the
bulk of the income passed to Treasury.
5.7.4 The Agency believes that it could most efficiently
and effectively deliver its services within a financial regime
that permits the recovery of a higher proportion of operating
costs through fees and charges levied on its customers. The Agency
considers that the optimum regime would be a trading fund. In
March 2000, DETR wrote to HM Treasury seeking agreement in principle
to DVLA becoming a trading fund in April 2002. A joint DETR/ HM
Treasury study group has been set up to discuss the way forward.
5.7.5 Further details are provided in Appendix B.