BVRLA rejects VOSA test fee proposals

The BVRLA has called on VOSA to abandon its plans to raise millions by introducing punitive test fee increases for commercial vehicle operators already struggling through a crippling recession.

The government agency claims that it is aware of the financial pressures on the industry, but is still proposing a 9% increase in the annual vehicle test fee. This would bring in an extra £4.3 million this year, with indications of further above inflation rises for the next couple of years.

VOSA also wants to raise an extra £5.3 million a year by merging the annual O licence vehicle fee with the annual test fee, bringing thousands more vehicles into scope.

This merged fee would put a completely unjustified burden on the rental and leasing industry and many other vehicle owners who would essentially be paying for enforcement costs despite not being subject to O licence requirements.

The agency claims that the 9% rise in the fee represents the increased cost of service provision, but it also admits that it has not been able to recover all of its costs in the past or make any efficiency savings. Not only does the VOSA proposal fail to explain what the fee increases will be used for, it also threatens operators with longer waiting times if they are not ratified.

"VOSA has failed to balance its books and it wants its customers to bail it out by paying these extra charges," said John Lewis, BVRLA Chief Executive.

"And it has chosen the worst recession in more than 50 years to do so."

Impact on rental and leasing firms

The BVRLA has issued a strong rebuttal to VOSA's proposals and will be asking the Department for Business, Enterprise and Regulatory Reform and the Department for Transport to review the agency's plans.

The association's response highlights the particular burden being placed on the rental and leasing industry. The merger of test fees will see the sector's annual bill rise by £3.2 million in 2009 and £7 million in 2010.

"It is wholly unfair to load the day-to-day cost of the O licence on to our members, especially as they do not require an O licence to carry out their normal business of renting commercial vehicles," said John Lewis.

"VOSA expects them to act as third-party tax collectors, and to recover these costs from their customers in the form of increased hire or lease charges. But this will be next to impossible in a fiercely competitive business environment."