Plans to increase the fees charged by vehicle recovery operators to 28% falls “far short” of what is required to meet the spiralling costs crippling firms, according to the Association of Vehicle Recovery Operators (AVRO).
Following a consultation into removal, storage and disposal charges, the Home Office said it would increase the statutory fee for the first time in 15 years: “The government will prescribe new charges based upon how much the fees should have risen since the previous review in 2008,” it said.
“This is the best evidenced and fairest proposal. The government assesses that the statutory fee increase will have a net benefit to small businesses with an estimated small cost to the insurance industry.”
It added: “The Home Office will work with the Department for Transport, police and industry to collect evidence on the appropriate level of charging for electric vehicles in our next review of charges.
- Government to investigate impact of management agency fees on rising cost of roadside vehicle recovery
“This will allow the government to undertake the necessary policy development and further engagement with stakeholders to address these issues with the aim of a further review of the statutory fees by 2025.”
AVRO said it welcomed the increase, but it was disappointed the Home Office rejected a call for the rise to be in line with vehicle running costs, instead choosing a framework rejected by almost 70% of respondents.
“The current situation has been made worse by predictions that inflation will rise by 10% this year alone, meaning the grim reality is that our industry will continue to face huge economic uncertainty in 2023 and beyond,” AVRO said in a statement.
“We also feel that the Home Office’s findings, as well as the wider consultation, represent a missed opportunity in regards to the operation and management of police contracts and the practice of large amounts of the statutory fees being taken by middle management organisations.”