Post Office keeps car tax contract
Motorists will be able to tax their cars at post offices for at least seven more years.
The Government said the Driver and Vehicle Licensing Agency (DVLA) is awarding a new contract to the Post Office to provide DVLA services until March 31 2020.
The contract, with the option for an extension for a further three years, will mean drivers will be able to get their vehicle excise duty car tax discs from post offices as well as applying for driving licences at certain post offices. The contract could be worth in the region of £450 million.
Transport Secretary Patrick McLoughlin said: “I congratulate the Post Office and am confident they will deliver an excellent service to motorists throughout the country.
“This contract also provides value for money for the taxpayer, resulting in savings of between £13 million and £15 million a year and demonstrates how serious we are about making savings within Government.”
Post Office chief executive Paula Vennells said: “We are absolutely delighted to have won this important framework contract.
“This is a ringing endorsement of the Post Office’s strong track record in successfully delivering essential government services and in our ability to compete on both price and quality of service as we support government to improve access to services while achieving cost reductions.”
National Federation of SubPostmasters general secretary George Thomson said: “The importance of this decision cannot be underestimated and is a victory for subpostmasters and their customers, who made clear that DVLA services are highly valued and are essential for the future viability of the post office network.
“This contract means the public and businesses will continue to have convenient, local access to essential services while subpostmasters will retain income to allow them to continue to provide a Post Office service to their communities.
“However, this vital contract must be the first of many awarded by government and local authorities if our cherished national network of post offices are to have a sustainable future, and if the pledge by ministers to use our post offices as ‘the front office for government’ is to be realised.”
Do you go to the post office to renew your car tax, or buy it online?
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