The DVLA receives about £170 million a year from the Treasury to fund its operation with most of the money being used to administer vehicle registration and driver licences. Informed sources believe that if the £25 one-off charge is introduced as planned on April 1 the Government could cut the cash it gives to the DVLA by the approximate £50 million raised.
An industry source told Fleet NewsNet: 'There is a lot of uncertainty in the DVLA which wants to wash its hands of the £25 fee proposal. It is a political decision. This money is being allocated to give the DVLA a trading fund; almost as if the Government was getting the DVLA ready for full or partial privatisation.'