DVLA unveils new car tax and driving licence updates impacting millions of motorists

At present, the DVLA keeps a register of almost 53 million drivers and around 47 million vehicles for a range of issues, including vehicle tax and licensing.

For the upcoming business year, the DVLA will focus on three core areas, namely raising customer experience standards, increasing efficiency and using data efficiently.

The DVLA emphasised that its main responsibilities included driver licensing, vehicle registration and the collection of Vehicle Excise Duty (VED).

It collects more than £8billion a year in vehicle tax for HM Treasury, and will be responsible for collecting electric Vehicle Excise Duty (eVED) from 2028.

This will see drivers of hybrid vehicles charged 1.5p per mile, while electric car owners will be expected to fork out 3p per mile to stay on the road.

Former Chancellor Rachel Reeves confirmed that this was down to dwindling receipts from fuel duty and the increased toll on the state of the roads.

The DVLA business plan aims to provide excellent customer service availability levels of greater than 99.5 per cent for vehicle tax.

It has set the same target for vehicle management, personalised registration and driver licensing services.

The agency is also looking to provide a fast and reliable service within three days by dispatching online driving applications within three days.

A 99 per cent target will be in place for these applications, which will help to reduce customer wait times and improve the customer experience year-on-year.

The DVLA has set out a stretch target to “improve our highest volume digital service by enabling customers to tax their vehicle using the Driver and vehicles account” by March next year.

It also aims to launch a new service that lets customers sign up for digital MOT reminders through the Driver and vehicles account by this December.

The business plan emphasises a commitment to deliver eVED delivery targets by April 2028 in line with timescales outlined by HM Treasury.

Tim Moss CBE, chief executive and accounting officer, said the new business plan marked an “important moment” for the agency, given the “ambitious vision”.

He emphasised how millions of people rely on the DVLA for its services every year for licensing issues and vehicle tax matters.

Mr Moss added: “Throughout this work, we will create the conditions for every person at DVLA to thrive – because none of this is possible without our people.

“This plan reflects the priorities agreed with the Department for Transport (DfT). It aligns with the Secretary of State’s vision for a safe, accessible, reliable and integrated transport network that connects people to opportunity, grows the economy and supports a greener and healthier future for the UK.

“I am proud of what DVLA does and confident in our ability to do it better. This plan is our commitment to our customers, our colleagues, our ministers and the public we serve.”