Conclusions and recommendations
1. Despite increasing its enforcement efforts
the Agency has not been able to reduce vehicle excise duty evasion.
It has research in hand
to help it identify the causes of evasion and recently launched
a new 'continuous registration' initiative to help validate its
vehicle database records. The Agency's target to reduce the evasion
rate to 2.5% by 2007 needs to be pursued vigorously as do its
efforts to improve the accuracy of its database. In particular,
the Agency should use the data provided by the roadside use of
Automatic Number Plate Reading (ANPR) equipment to develop frequent
statistical updates on the level of VED evasion, in order to inform
optimum deployment of its portfolio of anti-evasion activities.
2. The Agency should look to maximise the
effectiveness of its portfolio of enforcement activities. The
Agency plans to double wheel clamping activity—the least
cost effective enforcement measure—in 2004-05 in preference
to more cost effective approaches such as the use of ANPR equipment
which has the additional benefit of being able to provide real-time
data on the incidence of evasion.
3. There is considerable scope for the Agency
to expand its partnership working, particularly with local authorities
and the police, to combat VED evasion.
Less than 2% of local authorities across Great Britain are using
'devolved' Agency powers to tackle evaders. Yet those that have
done so have found it both quicker and cheaper than using their
own statutory powers in respect of abandoned untaxed vehicles.
4. The Agency needs to be resourced adequately
to support any future expansion of local congestion charging schemes.
Although in the case of the Central London
Congestion Charge, Transport for London met half the capital cost
and all of the ongoing running costs, the Agency is statutorily
obliged to supply information to local authorities free of charge.
This is unsustainable unless the Agency is able to recoup its
costs from the local authorities operating congestion charging
schemes.
5. There is considerable scope for the Agency
to enhance the range of VED payment channels for motorists and
for accelerating the plans to introduce electronic methods of
payment. The Agency needs to set itself
more challenging targets for the roll-out of electronic VED relicensing
facilities and their take-up by the public, whether at Post Offices
or elsewhere. Electronic licensing was introduced for Fleet Operators
in 1994; whereas the general motoring public are only just now
being offered a similar service by the Agency for vehicles less
than three years' old.
6. When re-tendering its IT/IS contract in
2002-03, the Agency took the opportunity to redefine the nature
of its relationship with its IT/IS service supplier to provide
a more flexible partnership approach.
Although the cost of switching supplier was higher than anticipated,
the Agency's management of the process offers lessons for others.
Its insistence on transparency in the new contract arrangements,
extending to the supplier's dealings with third party sub-contractors,
will help identify the potential 'switching costs' when this new
contract expires. The Agency also conducted a detailed evaluation
of the skills and knowledge that had to be transferred to the
new supplier from its predecessor in order to achieve a smooth
transition.
| 
