Following a public consultation which closed a little over 2 months ago the British Government has announced that the cost of obtaining a driving licence will be cut from the end of October with prices slashed by up to 32% as new drivers see cost of a provisional licence drop by 32% from £50 to £34.
There will be a similar reduction for online renewals with motorists paying £14 instead of £20 to renew their licences online every 10 years
Transport Minister Claire Perry said: "Thanks to DVLA making large scale savings to their running costs, we have been able to cut the cost of the driving licence which will save drivers and businesses £150 million over the next 10 years."
Treasury Secretary Danny Alexander also said that the move was part of "giving savings back to the taxpayer".
As well as the cut in the cost of driving licences, the fee for driver tachograph cards, which record information about driving time, speed and distance and are used by businesses to monitor how far their staff drive, will fall from £38 to £32.
Ministers say new drivers will save £82.2million over the next decade, with businesses and motorists expected to save in total £150million between now and 2024.
The drop in driving licence costs comes as car insurance went up for the first time in more than two years in the last quarter, according to the latest AA index.
The average cost for an annual comprehensive motor insurance policy rose by £6 to £531 in the last quarter.
The motoring organisation found efforts to clamp down on fraudulent claims have not delivered the savings that insurers had anticipated.
The DVLA processes one million ‘first licence’ applications every year, with more than 77 per cent of these applications made by 17 to 24 year olds.
Transport Minister Claire Perry said: ‘The cost of driving, especially for young drivers, can be significant and we are committed to cutting costs where we can.
‘Thanks to DVLA making large-scale savings to their running costs, we have been able to cut the cost of the driving licence which will save drivers and businesses £150million over the next 10 years.’
Cost cuts: The new fees showed here are for motorists applying for driving licences online
Some 2.1million photocard licences are renewed every year, meaning motorists already on the road would save £61.3million collectively over a decade.
Businesses make another 85,500 renewals a year and will save £2.44million over 10 years, while cost cuts to tachographs will save businesses another £3.58million over the decade.
Chief Secretary to the Treasury Danny Alexander said: ‘Giving savings back to the taxpayer is a key element in this government’s drive for a stronger economy and a fairer society. That’s why we’re slashing the cost of getting a driving licence and giving it straight back to young people and businesses, saving £150 million over 10 years.’
Other cuts being considered include vehicle first registrations and duplicate registration certificates.
Professor Stephen Glaister, director of the RAC Foundation, said: ‘The Department for Transport’s own surveys show the three things that do most to put young people off driving are cost, cost and cost: of learning, of insurance and of buying a car.
‘Incomes for teenagers have been under downward pressure at the same time as motoring costs have generally been rising. This move is welcome.’
Filed under: http://www.theleader.info/article/45382/
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