Licence fee rise to help DOT cashflow
Page 5
If you've noticed an error in this article please click here to report it so we can fix it.
by Nicky Clarke • Hauliers face a 17.6% rise in the cost of an 0-licence to make up a shortfall of £2.2m in the cost of running the goods vehicle licensing system.
The Department of Tranpsort is consulting the industry on raising the fee for new licences and major variations to existing licences by up to .C200, and raising the quarterly fee for each vehicle specified on a licence by .£1 to LS, The rise will take place in the spring. The fee was increased by ,L00 last year when the DOT said there would be a shortfall of another 12m, Administration and enforcement of the 0-licensing system has been running at a deficit of .C2m for the past five years and has been subsidised by the taxpayer, says the DOT.
Last year's rise "failed to generate the necessary additional income, says a letter to the industry from the DOT. The department attributes this to a fall in demand for licences with a fall in the numbers of vehicles being specified on licences.
Road Haulage Association operations director Tim Inman says he is horrified by the plan: "We shouldn't be in the business of protecting traffic area offices in a recession."
The DOT says it is still reviewing the 0-licence fee structure with a view to making it fairer.