Question to the Department for Transport:

To ask the Secretary of State for Transport, pursuant to the answer of 16 March 2026 to Question 119471 on the Vehicle Certification Agency, what the estimated financial deficit of the Vehicle Certification Agency is in monetary terms and as a percentage of full cost recovery; what assessment her Department has made of the causes of that deficit; whether the Vehicle Certification Agency should operate on a full cost recovery basis.

The Vehicle Certification Agency (VCA) reported a net deficit of £8.778m in its accounts for the 2024/25 financial year. Income was reported at £22.252m against costs of £31.031m

The hourly rate charged by the VCA for technical work has not increased since 2006.

Chapter 6 of Managing Public Money, instructs government agencies that the standard approach is to “…set charges to recover full costs”, the intention of which is to “…make sure that the government neither profits at the expense of consumers nor makes a loss for taxpayers to subsidise it.”