Driver & Vehicle Licensing Agency Annual Report & Accounts 2019-20

The results from the 2019 Roadside Survey show the DVLA has made progress towards restoring VED compliance to 99% or higher, but the DVLA needs to continue to take a proactive approach in targeting areas of known risk. Survey findings show that although understanding of the non-transferability rules introduced in 2014 are improving, a change of keeper remains a factor driving non-compliance. Additionally, the deliberate evasion shown by some keepers remains an area that needs to be addressed to restore VED compliance to historic norms.

Ref Page 81, point a · Implemented Q1 2022-23

The DVLA’s varied actions to promote compliance as part of their ‘easy to comply, hard to avoid strategy’ have proven successful. The DVLA should continue with the exercises that provide the greatest benefit. The DVLA should look to further opportunities to expand reminders, including the use of digital notifications.

Ref Page 81, point b · Implemented 07/2023

Despite increasing recruitment of Devolved Power Partners, their potential to help limit evasion is not currently being fully realised, with a fifth of partners inactive over 2019-20. The DVLA should act to encourage current DPPs to make use of their power and ensure that it is seen as mutually beneficial.

Ref Page 81, point c · Implemented Q4 2022-23

In considering the future of VED policy, the Department and HM Treasury face the challenge of needing to consider factors bearing both on revenue forecasts and the stated policy aim to reduce carbon emissions and promote cleaner air through influencing vehicle stock. In considering trade-offs and designing future policy, the Department and HM Treasury should specifically consider: • the evidence of consumer buying choices under the current VED regime on vehicle stock, as highlighted in paragraphs 40-47; • the medium-term impact of the coronavirus pandemic on car use models and consumer decisions; and • in the longer term, the revenue consequences of the VED tax base being eroded as progress is made on shifting towards less environmentally damaging vehicles.

Ref Page 81, point d · Implemented Q4 2020-21

Finally, the Department and HM Treasury should consider all the factors above and continue to monitor the most up to date trends and forecast data on the volatility of future VED forecasts when considering policy in respect of the National Roads Fund, announced in the second Road Investment Strategy (2020-25) as creating a link between VED receipts in England funding for road infrastructure. Notwithstanding this new link, there will need to be sufficient flexibility in the long term to consider whether funding levels support the optimisation of value for money, both in terms of asset management responsive to network condition, and on new investment.

Ref Page 81, point e · Implemented Q4 2020-21