Fleet News

Fury over 'out of the blue' £25 registration fee

FURIOUS fleet and motor industry chiefs are to protest to the Government at a proposal to introduce a £25 fee on first registration of all new cars, vans and trucks. The 'out of the blue' proposal was announced this week by Transport Minister Gavin Strang and was immediately condemned as 'monstrous' by the British Vehicle Rental and Leasing Association and a 'further burden on business' by the Association of Car Fleet Operators.

The two organisations were joined in their protests by the Society of Motor Manufacturers and Traders and the Retail Motor Industry Federation, with all four deciding to mount protests 'in the strongest possible terms' and seek meetings with Strang. The SMMT and RMI were due to discuss the controversy with Department of Environment Transport and the Regions officials yesterday (Thursday). The new charge - which would raise more than £50 million a year - will be introduced on April 1 if MPs give it the go ahead. A consultation period on the plan runs until February 16.

ACFO director Stewart Whyte said he was 'dismayed and outraged' at the proposal. Norman Donkin, secretary general of the BVRLA, said: 'The proposal makes a mockery of the promise by Government to consult. It is blatant money-raising by the Treasury.' RMI chief executive Christopher Macgowan said: 'My initial reaction was total disbelief. This industry already raises £28 billion each year - what is the extra money all about? We thought that we were involved as an industry in addressing environmental issues and in working on an integrated transport policy - and then this comes as a bolt from the blue.'

SMMT public affairs director Roger King said the society was shocked by the plan and added: 'We would hope that when the time comes MPs will probe very closely as to why this huge amount of money is required by the DVLA in order for it to run along the same lines as every other business.' Defending the introduction of the charge Strang said introducing 'a modest fee' would improve the efficiency of the Driver and Vehicle Licensing Agency.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee