The British Vehicle Rental and Leasing Association (BVRLA) is demanding that the Department of Transport (DfT) provides more money for the Driver and Vehicle Licensing Agency (DVLA).
The call comes after the DVLA announced it is abandoning plans for an online vehicle licence check, due in 2010, in favour of telephone and paper systems. The BVRLA estimates that the system could have saved the DVLA up to £5.5m each year.
The BVRLA says that the cuts have been forced on the DVLA because a fall in new vehicle registrations has cost it £50 million. "The DfT needs to give it [the DVLA]a more reliable source of income," says a BVRLA spokesman.