How much we will spend and save
Managing our finances and contracts
DVLA will manage and account for a substantial amount of public funds (Financial summary - projections) provided by fee payers and through Parliament (supply funding).
During 2012-13 we will:
- freeze our fee levels at the same cash amount as 2011 for the financial year to March 2013
- manage spending to match income so that we break even by March 2013
- consult on fees for 2013-14, specifically in relation to reintroducing a fee when a vocational driver renews their licence, also offering a reduced fee where a licence application is managed to take place soon after a passport photograph has been renewed
- reduce spending further by £5.75 million against the 2010 operating cost baseline, to keep us on course to a £100 million saving
- manage and control the cost of our change agenda so that over time we place less of a burden on parliamentary supply funding, keeping our fee levels stable whilst we manage and absorb supplier price increases
- increase spending overall by £5.8 million to achieve changes mainly to meet the cost of meeting the UK’s obligation to implement the EU 3rd Directive, one-off change costs relating to contract migration and centralisation of tasks
- manage and limit the cost of additional activity introduced since 2010 that will increase overall income and expenditure. At the same time, deliver £100 million operating cost reduction by 2015 measured against a 2010 baseline.
Risk to delivery of financial forecasts
There is a risk of businesses and households postponing transactions that are fee bearing, such as new vehicle registration.
We will draw on expertise outside the Agency to improve the accuracy of forecasts of customer demand. In parallel, we will keep a careful eye on spending commitments to retain flexibility as we strengthen our capability to forecast expenditure.
DVLA will work to procure two key new service contracts during the year, as well as migrate two new contracts recently awarded.
The Agency will work with Telereal Trillium to reflect the impact of changes in the network transformation on our estates Private Finance Initiative should the decision following the modernisation consultation endorse the proposals.
During 2012-13 we will:
- complete the procurement during the year and transition to the new contract to ensure business continuity with the existing Post Office® contract which expires in March 2013
- take steps to define requirements, develop the Official Journal of the European Union (OJEU) advert documents, appoint Technical Delivery Partner(s) and agree a strategic technical architecture to pave the way to ensure our ICT services are delivered past the end of the current contract with IBM that expires in 2015
- implement the new contracts recently awarded for merchant acquirer and blank card provision, both awarded on a cross government basis in the final quarter of 2011-12.
- DVLA Business Plan 2012-13
- Chief Executive message
- About us
- How the Agency is changing
- What we will do
- Sustainability in DVLA
- How much we'll spend and save