Under new arrangements introduced with effect from 1 January 1996 the costs incurred by licensing authorities in the administration of the motor taxation system, including driver licensing etc., are met by the authorities by deduction from the gross proceeds of the tax. A total of £17.48 million was retained by licensing authorities towards these costs in 1996 of which £3.48 million was in respect of sums owed to authorities under the previous recoupment system (which consisted of payments by my Department quarterly in arrears). The expected outturn for operating costs in 1997 is £16 million.
The gross amount collected by licensing authorities in respect of motor tax (and including driver licence duties etc.) to the end of November 1997 was £276.6 million.