Drivers set to save £54 million as red tape is cut

Red Tape

Photo credit: Joel Bombardier

Car leasing and contract hire customers are set to save a combined £54 million thanks to new initiatives by the government to cut unnecessary red tape. Roads Minister Stephen Hammond has announced a range of plans designed to help drivers save time and money by removing a number of rules and regulations.

Business car leasing customers in particular are set to save money after changes were announced to the registration certificate requirements. Keep reading to find out more…

Removal of red tape reaping ‘real benefits’ for drivers

Mr Hammond has announced a range of changes designed to help motorists save time and money. Pledging to make further cuts to needless bureaucracy, the Roads Minister said: “Taxpayers have a right to expect Government services to be convenient and uncomplicated. The work we have carried out to remove unnecessary paperwork has reaped real benefits for motorists and businesses.”

The changes are expected to save car leasing customers including individuals and businesses a combined £54 million. The main changes include:

  • 33 million drivers will no longer need a paper counterpart to their driving licence, saving an estimated £8 million each year
  • 6 million drivers will no longer need to return an insurance certificate if a policy is cancelled mid-term, saving businesses £29 million each year
  • 36 million vehicles will no longer need a paper tax disc, saving a total of around £14 million each year
  • 2 million fleet vehicles will no longer need a paper registration certificate, saving companies around £3 million each year

Mr Hammond added: “Some of these changes might seem very straightforward but they are helping to make life easier for millions of people. Our work will not stop there and we will continue to look for ways of slashing unnecessary bureaucracy across the transport network and ensuring Government services are customer-friendly.”

Commenting on the announcement, Jay Parmar, Legal and Policy Director of the British Vehicle Renting and Leasing Association, said: “Being able to request the V5C on demand from the DVLA will reduce costs on fleet owners who currently have to store and retrieve millions of documents each year.”

“Notifying the DVLA electronically of a change of keeper will remove a huge administrative burden for our members as well. However, the industry needs an online replacement for the driving licence paper counterpart that is cost-effective and provides real-time, 24/7 access.”

Two further changes set to save time and money

As well as the changes announced by the government, two further initiatives were launched this January.

Firstly, a user-friendly guide for professional drivers will be developed to increase clarity and understanding on drivers’ hours and working time rules, particularly about when a driver needs to take a break.

In addition, the frequency with which digital drivers’ hours records must be downloaded from tachographs will be relaxed: a change which benefits drivers on long international tours.

Changes made to rules for car leasing, hire purchase and contract hire customers are already saving business over £70 million a year, and saving private motorists over £100 million a year. These include:

  • 600,000 more people can tax their vehicle online
  • 1.2m vehicle owners no longer need to renew their Statutory Off Road Notification (SORN)
  • 76,000 valets and mechanics have been exempted from additional driver training
  • 160,000 motorists don’t need to MOT their historic vehicle

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