New Tory policy
The Telegraph reports (behind registration wall) that David James' efficiency gains drive has come up with a plan to privatise the DVLA, and make the insurance industry produce and distribute road tax discs.Tim Yeo, the shadow transport secretary, said that the measures would allow the Government to crack down on the estimated one in 20 motorists who drive without insurance: "Under a Conservative government, drivers will receive a tax disc from their insurance company at the same time."
There seems a lot of merit in this proposal. You cannot drive a car without insurance or road tax, so issuing them together appears sensible (there might be some problems with people changing insurers, but they don't appear insurmountable).
It'll be interesting how the Tories present the savings from this proposal however. The efficiency gain is not the money saved by scrapping the DVLA's Road Tax role. It is merely the difference between the cost of the DVLA admnistering Road Tax, and of the insurance companies doing it. Taxes will fall (all other things being equal) but insurance premiums will rise.
I note that they don't seem to have considered scrapping the charge though.
posted by Matthew @ 11/22/2004 09:12:00 AM
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