Removal, storage and disposal of vehicles regulations: business regulatory impact assessment

8. Section 7: Options Considered and Recommended

8.1 Options considered initially (or so far if this is a Partial BRIA)

There are only two options under consideration. Maintaining the status quo is not considered the preferred option, for the reasons outlined in Section 3, as the current charging framework is said no longer to reflect operational costs adequately. Therefore a statutory fee uplift, alongside a number of other measures, was considered to be the preferred option from the outset. These are detailed at 8.2.

8.2 Recommendations/ preferred option

Statutory Fee Uplift

• AVRO have provided initial illustrative modelling which uses a 31% uplift based inflation calculations, benchmark rates and some third-party commercial vehicle cost comparisons. These identify standing and operating costs for commercial vehicles – which have increased in excess of inflation. Sources include Logistics UK and motortransport.co.uk.
• However independent economic advice based on the GDP deflator in the seven-year period from 2018/19 to 2025/26 suggests that an uplift of 31% would be a closer reflection of inflationary pressures since the last review.
• Charges would be updated across removal and storage matrices for both pieces of legislation.
• The rate would be applied to disposal for RTRA related disposals.

Ferry Cost Recovery

• Revised flat rate: £164.
• Proposal to move to a revised prescribed model that includes time-based charges for specified delays, congestion or cancellations.

Mileage Rate Adjustment

• Current flat rate: £1.10 per mile for travel over 40 miles for RTRA and ASA.
• Proposal to introduce:

Electric Vehicle (EV)–Specific Charges

• The growth in electric vehicles presents specific operational challenges, these cannot be addressed through the current statutory framework without further evidence and engagement.
• Stakeholders have also raised the issue of e-scooters and bikes and the need for minimum recovery charges. Contractors are currently unable to recover costs due to low vehicle value.
• Scottish Government officials are working closely with the Home Office, UKG counterparts and key industry bodies to understand the impact of EVs and generate an evidence base to support further reforms.