The Driver and Vehicle Licensing Agency has published its business plan for 2026–27, setting out targets for faster customer services, wider use of digital transactions and the introduction of artificial intelligence under a new governance framework.
The plan, published on 19 October, marks the first year of the agency’s 2026–30 strategic cycle. It covers core responsibilities including driver licensing, vehicle registration and vehicle tax collection, and describes how the agency intends to improve its services while managing its finances.
Among the customer-service targets, the agency aims to dispatch 99 per cent of online driving licence applications within three working days. The same target applies to online vehicle registration certificates. It also intends to bring average decisions on medical licensing cases down to 45 working days by March 2027, a 10 per cent improvement on the previous year.
Call and chat waiting times are targeted to fall below an average of 10 minutes by January 2027. The plan targets resolution of 90 per cent of complaints within 20 days by December 2026, improving that measure to 15 days by March 2027. Core online services, including vehicle tax, vehicle management, personalised registrations and driver licensing, are expected to be available more than 99.5 per cent of the time.
The plan also sets out a push towards digital transactions. The agency aims for 85 per cent of transactions to be completed through digital channels by March 2027. It plans to enable vehicle tax payments through the Driver and vehicles account and to launch digital MOT reminders through that account by December 2026.
Artificial intelligence is included in the agency’s programme, with an AI action plan due to be implemented by March 2027. The document identifies possible applications including assistance with complaints, contact-centre support and software development. Use of the technology is to be governed by safeguards addressing ethics, legal compliance, transparency, data protection and accountability.
Other commitments include more than £5 million in efficiency savings, a further eight per cent reduction in carbon emissions against the 2024–25 baseline, and at least 110 apprenticeships. The agency also plans to reduce sickness absence by more than 10 per cent and accidents on its estate by 15 per cent.
The plan identifies migration of the drivers register from a legacy mainframe to a cloud platform as a strategic technology outcome, with a November 2026 target. It also sets out work towards collecting electric vehicle excise duty from April 2028, in line with government timetables.
For medical licensing, planned improvements to the online service and case-management processes are intended to reduce delays. The plan recognises that decisions in these cases can affect people’s lives and livelihoods as well as road safety.
Financial forecasts in the plan put total income for 2026–27 at £686 million and expenditure at £629 million, compared with unaudited 2025–26 outturn figures of £694 million and £570 million respectively. These are forecasts, not final outturn results. Delivery will sit within the government’s spending review settlement, with efficiency savings intended to support service quality.
