business plan 2012/13data.parliament.uk/depositedpapers/files/dep2012-0964/...vosa highlights from...

Saving lives, safer roads, cutting crime, protecting the environment

Business Plan 2012/13

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‘Saving lives, safer roads, cutting crime,protecting the environment’

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Contents

VOSA Highlights from 2011/12

Chief Executive Introduction

An Introduction to VOSA

Our Strategic Direction

Our Plans for 2012/13

1. Testing & Inspection

2. Enforcement

3. Licensing & Authorisation

4. Supporting Compliance through Education and Information How we will deliver our Plan

1. Financial Management

2. Our People

3. Estates, Facilities and Travel

4. Summary of Planned Efficiency Savings Annex 1 – 2012/13 Key Performance Framework

Annex 2 – Glossary

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VOSA Highlights from 2011/12

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u 2 in 5 HGV and PSV tests carried out at non-VOSA sites and 117 new Authorised Testing Facilities opened in 2011/12

u Finance Director, PaulCoombs, recognised as ‘Finance Director of the Year’ in Government Finance Profession Awards

u Improved intelligencethrough access to the UK Border Agency’s Freight Targeting System

u Delivery of electronicNational Register for Hire and Reward operators

u Award winning Drivers’Hours pocket guide

u Introduction ofimmobilisation release fee

u Second annual surplus(£8m in 2010/11, £14.5m in 2011/12), reversing previous year on year deficits and recovering the retained deficit

u Re-accreditation for thethird year running to the Customer Service Excellence standard

u Increased customer accessto vehicle testing reports

u Hosted over 100 workplacements

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Chief Executive IntroductionVOSA has a clear vision of enabling our customers to achieve greater compliance and we’ve already started on our journey to realise this vision. Our plans for 2012/13 enable us to continue on this journey through the delivery and development of a number of initiatives across the ‘four pillars’ of compliance: Testing & Inspection, Enforcement, Licensing & Authorisation and Education & Information.

We are now well advanced with our programme to transform the way we carry out annual testing through significantly increasing the number of Authorised Testing Facilities (ATFs). At the same time HGV initial test pass rates have increased by 7 percentage points from 2008/09 to 2010/11 illustrating improved levels of compliance. We aim to carry out the majority of our core statutory tests at non-VOSA sites by March 2013.

During 2011/12 VOSA has also been reviewing its enforcement activity to consider further how we can best balance our activities to achieve greater compliance. Our focus will particularly be on balancing ‘regulatory’ enforcement interventions with education initiatives to empower the industry and individuals to increasingly manage their own compliance. We will also focus effort on those operators and MOT garages that present the greatest risk – both in terms of the impact and likelihood of non-compliance.

We have been working in close collaboration with industry to agree the information that they would like us to publish and we will also ensure that the views of customers are considered in policy discussions with the Department.

Authorisation processes will become increasingly tailored to the needs of the customer to enable improved compliance. We will also seek to share our skills and experience more widely through, for example, supporting the Driver and Vehicle Agency in Northern Ireland to establish new administrative processes for operator licensing.

Work both already underway and planned aligns with the Government’s Open Public Service agenda particularly through increasing choice while ensuring quality services at best value for money.

Over the last few years VOSA has significantly reduced its headcount and costs and I believe that the organisation is now of the right shape and size for a sustainable future. We will continue to take concerted action to deliver ongoing efficiencies, including through the VOSA Improvement Programme, designed to embed a culture of business excellence and continuous improvement across the organisation. Our planned IT modernisation programme will also deliver major IT cost savings whilst providing a more agile platform to meet future business needs.

We understand the ongoing challenges faced by our customers and will continue to work with them to reduce costs. 2012/13 will be the third year of no overall fee increases. At the same time we are committed to our journey to financial stability by recovering our retained deficit.

VOSA’s staff are this organisation’s greatest asset. This year we have focused on new ways to bring them into the decision-making process and together we have re-shaped our VOSA values of unity, integrity, understanding, excellence and responsibility. I am confident in the commitment of our staff to continue to deliver high quality services and ensure VOSA continues to play a fundamental role in saving lives and making roads safer. As an organisation we will always take an immense pride in the work that we do.

Alastair Peoples Chief Executive

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An Introduction to VOSAVOSA is an Executive Agency of the Department for Transport (DfT). We contribute to saving lives, making roads safer, cutting crime and protecting the environment through ensuring compliance with regulations of operators, drivers, MOT garages, tachograph centres and speed limiter centres.

We deliver compliance through authorisation, testing, education and information services, and, where necessary, take enforcement action against those who are non-compliant, for example through issuing fixed penalties or through the immobilisation of vehicles. We regularly review our activities in line with changing patterns of non-compliance and accident causation.

Our Strategic DirectionVOSA’s vision for the future is one where operators, drivers and MOT garages are fully compliant with regulations.

In March 2010 the Directing Board agreed a new strategic framework, followed in March 2011 by endorsement of a clear Blueprint for the future. These set out the management of compliance into four key areas of work:

1) Testing & Inspection;

2) Licensing & Authorisation;

3) Enforcement; and

4) Education and Information.

How, when and where we deliver these will alter as we embed an increasingly risk and evidence–based approach which is proportionate and targeted according to the principles below.

1) Targeting those operators, drivers, MOT garages and speed limiter / tachograph centres most likely to be non-compliant

2) Targeting areas of non-compliance most likely to cause accidents / incidents

3) Ensuring we are effectively located

4) Partnering more effectively with regulatory bodies and trade

5) Adopting a graduated approach to sanctions

Business Plan PurposeThis Business Plan sets out the key activities we will deliver in 2012/13, and the means by which we will measure success.

The first section of the Plan focuses on what we will deliver within each of the four pillars, and the second section on how we will deliver, through management of our finances, people and estate.

The performance framework at Annex 1 summarises our key performance measures.

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Our Plans for 2012/131. Testing & Inspection

Key Performance Measures

u Take the total number of open ATFs toin excess of 200 by March 2013

u Develop and manage 16 targetedsales plans for selected GVTS

u Cease testing at a further 10 VOSA sites

We are now well advanced with our programme to transform the way we deliver testing and remain fully committed to reducing costs and delivering benefits as a result. Through having more Authorised Testing Facility (ATF) contracts with third party testing facility providers we are moving testing closer to the customer and to the point of vehicle maintenance and repair, providing greater customer choice and reducing overall vehicle ‘downtime’. Through this strategy we aim to deliver the majority of our core statutory testing at non-VOSA sites by March 2013.

Through ceasing testing at VOSA sites we reduce estate running costs and a further key benefit is the avoidance of unnecessary and significant expenditure needed to modernise the VOSA GVTS estate, in turn avoiding future fee increases for customers.

What we have already achieved

u 117 ATFs opened during 2011/12

u 41% of tests carried out at non-VOSAsites by March 2012

u Introduced new test items to the annual testas a consequence of 2010/48/EU1

u Identified elements of the annual test forpotential simplification

u Extended Individual Vehicle Approval(IVA)2 to cover buses and coaches built in multiple stages and Light Goods Vehicles

u Issued Low Emissions Certificates (LEC)to relevant vehicles to verify that they meet standards to drive in the London Low Emission Zone by January 20123. We also arranged for LEC tests to be provided at ATFs

What we will deliver this year

u Accelerate testing at non-VOSA sites through:

w Offering more testing days to existing ATFs

w Expanding the ATF network

w Changing the services available atVOSA locations to support the move to non-VOSA sites

u Create market development plans for allgeographical clusters and from this develop and manage 16 targeted sales plans for selected GVTS. These plans will support our ability to cease testing at 10 sites this year and support plans for ceasing testing at further locations in the future

u Design and prototype a new operatingmodel for delivering testing to the growing number of ATFs

u Plan for further changes to thedifferential fees between tests carried out at VOSA and non-VOSA sites to reflect a fair allocation of costs

u Introduce a process from October 2012to approve heavy goods-carrying trailers before they are used on the road and support DfT in the longer semi-trailer trial

u Support the Olympics, for example,through ensuring that PSVs are appropriately certified to meet the needs of the Olympics and Paralympics

u Support DfT in the negotiation of any ECproposal for a new EU roadworthiness directive

u Modify our MOT IT system to allowelectronic vehicle licensing of exempt vehicles manufactured before 1960

1 2010/48/EU is an EU Commission Directive that specifies changes to roadworthiness tests for motor vehicles andtrailers. This directive adapts Directive 2009/40/EC

2 IVA is a pre-registration inspection for vehicles that haven’t been type approved to British or European standards3 The London Low Emission Zone aims to improve the air quality within London by deterring the most polluting

diesel engine vehicles from driving into the zone. From 3 January 2012 vehicles need to meet the Euro IV standard for the emission of particulate matter

u Support DfT in progressing anyrecommendations resulting from the consultation on deregulating the Vehicle Identity Check

u Progress with the roadworthiness issuesarising out of the recommendations of the Farming Task Force with particular emphasis on annual testing of heavier and faster tractors and their trailers

2. Enforcement

Key Performance Measure

u The prohibition rate found at targetedchecks of non-compliant HGV operators and drivers will be at least 12 percentage points higher than the rate found through random compliance checks4

During 2011/12 we have been reviewing our enforcement activity to consider further how we can deploy resources more efficiently and effectively to ensure effort is focused on those operators and garages that present the greatest risk. As a result, specific areas of improvement have been identified in terms of access to information, intelligence and roadside enforcement.


u Effectively targeted high risk HGV operatorsby achieving an average prohibition rate of 10 percentage points above the underlying non-compliance baseline

u Formally agreed access to the Freight Targeting System with the UK Border Agency

u Introduced an immobilisation release feefor those operators whose lorries, buses and coaches pose a threat to road safety

u Agreed a strategy to evolve our OperatorCompliance Risk Score (OCRS) tool to further improve our ability to highlight those UK and non-UK operators which present the highest risk

u Published our 2010/11 MOT ComplianceSurvey alongside the Secretary of State’s announcement in February on Garage Customer Experience


In 2012/13 we will continue to make improvements to the way we deliver enforcement in line with our strategic direction.

We will:

u Review our roadside stopping processto ensure our resources are deployed most efficiently and effectively

u Start to implement our OCRS strategyto deliver access to wider data sources, better identification of high risk operators and improved speed and agility

u Introduce changes to our enforcementprocedures in line with 2010/47/EU5

u Continue to provide input to DfTregarding work on next generation digital tachographs

u Work with DfT to implement HGV roaduser charging

u Develop our service of issuing advisory(warning) letters for breaches that can be detected remotely – initially for overloading

u Contribute extensively to the GarageCustomer Experience initiative to improve under-performing garages

u Support DSA on Driver CPC through agreedenforcement strategies

3. Licensing & Authorisation


u Determine 85% of goods and PSVapplications unopposed and not requiring a public inquiry within 9 weeks of the date of receipt of the application and the required fee

4 For 14 years VOSA has been working with DfT to undertake regular random checks of fleet compliance.Prohibition rates identified through our most recent random check form the baseline for this measure, against which we will measure prohibition rates that result from our targeted activities

5 2010/47/EU is an EU Commission Directive that specifies changes to the technical roadside inspection ofcommercial vehicles. This directive amends Directive 2000/30/EC

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Licensing and authorisation processes play a key role in enabling compliance through making licensed operators and Authorised Examiners aware of their responsibilities. Staff working at the Central Licensing Office deal with applications for and variations to HGV and PSV operator licences under the delegated authority of the Traffic Commissioners and in accordance with the legislation and the Senior Traffic Commissioner’s Guidance and Directions.


u In line with EU requirements, delivered anelectronic National Register for Hire and Reward operators

u Launched a new approach to buspunctuality improvement, shifting effort away from roadside monitoring to working more closely with bus operators and local authorities to check punctuality systems and give guidance where necessary


u Support the Driver and Vehicle Agency in Northern Ireland to establish new administrative processes for operator licensing

u Provide for the interconnection of theNational Register to other member states in turn enabling the transfer of enforcement findings to these member states

u Work with the Traffic Commissioners andDfT to implement the Competition Commission recommendations requiring changes to the bus registration system

u Support the DfT in taking forwardcommitments in the Logistics Growth Review and Road Transport Red Tape Challenge reports

4. Supporting Compliance through Education and Information


u Maintain Customer Service Excellenceaccreditation for Operator Licensing and the Customer Service Centre

u Maintain customer take-up for operatorself service transactions at 70% and Electronic First Time Pass Rate reports at an average of 60%

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u Maintain customer satisfaction at 90%through the development and delivery of a strategy by 31 March 2013

We are fully committed to supporting the Government’s digital agenda and ‘Big Society’ vision and will work more effectively in partnership with stakeholders across industry and government to enable operators and MOT garages to manage their own compliance.

Our vision is to enable customers to maintain their transactions online and move towards a customer centric authorisation process which is lean, efficient and standardised.


u Through collaboration with industry wehave delivered test result report services to reach an overall average of 60% of marketplace across HGV operator, preparer and leasing industry customer segments

u Received a national award for our pocketguide designed to help professional drivers understand complex drivers’ hours rules

u Refreshed our MOT pass and failure resultsfor the period from 2005 to 2011 at the same time incorporating additional information as a result of public feedback

u Held seminars for over 7,500 new operatorsand approximately 8,700 MOT garage staff


u Develop and deliver a strategy to ensurethat customer satisfaction is maintained or improved against 2011 levels as evidenced through the survey scheduled for 2013/14

u Migrate our online content from BusinessLink and our corporate website to a new cross-government website by November 2012

u Publish a ‘compliance dashboard’ agreedwith industry

u Release vehicle test and inspection data forall vehicle classes and operators (where relevant) under Open Data Conditions

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How we will deliver our Plan1. Financial Management


u Deliver financial performance in line with the Business Plan

We are now into the third year of our financial recovery plan and we are making excellent progress towards achieving a sustainable and financially sound Trading Fund. While continuing to recover our retained deficit we are also into our third year where there have been no general statutory fee increases despite being affected by external cost increases and lower income. In addition to this, we are continuing to take concerted action to deliver ongoing efficiencies through our work to reduce the footprint of our estate and reduce IT costs.


u Through cost savings and efficiencies turned a deficit of £15m in 2009/10 into surpluses of £8m in2010/11 and £14.5m in 2011/12 despite lower income

u Introduced a new style MOT certificate printed on plain paper, saving £0.6m in 2011/12 with afurther £3.5m saving predicted over the next 4 years

u Delivered a range of ICT cost savings, including renegotiated ICT supplier contracts

u Commenced the roll out of a new electronic payments system


u Deliver an Income & Expenditure surplus of £7m in line with our ongoing financial recovery plan

u In consultation with DfT agree a full business case for ICT modernisation designed to deliver arange of financial, service and business efficiency benefits

u Start to implement the new VOSA Improvement Programme designed to develop a culture ofefficiency, business excellence and continuous improvement

u Prepare for migration to a Shared Services Centre for back office transactional functions

This will be achieved whilst maintaining delivery of our core activities which will remain broadly in line with 2011/12 volumes. Planned Income and Expenditure

I&E Detail 2009/10 Actual £m

2010/11 Actual £m

2011/12 Forecast £m

2012/13 Budget £m

Total income 190.2 187.0 184.0 183.2Total expenditure 204.8 179.4 169.5 176.2Surplus/(Deficit) (14.6) 7.7 14.5 7.0DfT exit funding & other adjustments 10.1 3.6 2.8Opening deficit (32.3) (36.8) (25.5) (8.2)Cumulative closing (Deficit)/Surplus (36.8) (25.5) (8.2) (1.2)

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Planned Capital BudgetTotal

12/13 £mEstates (including HRTI) 5.2Facilities 0.1Procurement 1.9IT 3.7TOTAL 10.9

2. Our People


u Deliver our Business Plan within a staff complement of 2,332 u Reduce the average number of working days lost per FTE for sickness absence to 7.5 days

Our workforce is divided by front and back office as follows:6 2012/13

Front line 1,857Back office 475Total FTE 2,332


u Reviewed the way we manage change which has contributed towards an overall improvement inour level of staff engagement. In particular we:

w Encouraged greater staff participation in reviewing and prioritising our plans for the nextfive years through business workshops

w Carried out regular and consistent corporate briefings to all staff w Published our corporate plan for further staff engagement, focusing on four key areas of

leadership, involvement, performance management and change w Worked with a range of staff to develop the ‘VOSA Journey – our route to compliance’

u Acted as the DfT champion for the Government initiative to provide placement opportunities forunemployed 18–25 year olds to get into work. VOSA hosted over 100 placements during 2011/12

u Reduced our average number of working days lost per FTE for sickness absence from 9.1 to 7.6between 2010 and 2012


u Work with line managers across the business to continue to improve attendance

u Continue to engage with staff through: w Improving our performance management system w Rolling out continuous improvement awareness training w Enhancing our front line management development programme

u Ensure motivated and appropriately skilled staff in the right jobs for a future VOSA through: w Developing more effective talent management w Promoting continuous professional development w Effective deployment of time allocated to internal training

u Review options for recruiting staff through a new apprenticeship scheme

6 For workforce planning purposes front line is defined as being ‘public facing or fee earning’9

3. Estates, Facilities and Travel


u Cut carbon emissions from agency buildings and business use of vehicles by 15% at 31 March2013, compared to a 2009/10 baseline

As we take testing closer to the customer and improve our efficiency we plan to reduce the overall size of the VOSA estate, ensure that any retained estate is managed in a sustainable manner and improve the carbon efficiency of our business travel.


u Ceased testing at 5 test sites

u Delivered a carbon reduction across the office estate through more effective management andreduced footprint

u Obtained agreement to plans for the future testing estate in 46 areas

u Contributed towards wider Government savings within the overall non-operational estate

u Agreed a sustainability strategy for 2011 to 2015 that will meet the Government’s sustainability agenda


u Further develop plans for new enforcement sites in strategic locations in line with our EnforcementSite and Sustainability Strategies

u As a consequence of increased ATF take up further reduce costs by ceasing testing at 10 VOSAsites including managing the decommissioning of test lanes at these sites

u Improve the accuracy of our sustainability data

u Review the way we manage our fleet to ensure: w Sustainable financial savings w Greener vehicles w Closer control over repair and maintenance

4. Summary of Planned Efficiency Savings

Activity 2012/13 £m

MOT plain paper and service change 1.3Estate footprint savings 0.4Ceasing testing 0.1

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Annex 1 – 2012/13 Key Performance Framework

DfT Vision ‘a transport system that is an engine for economic growth, but one that is also greener and safer and improves quality of life in our communities’

ReformTake the total number of open ATFs to in excess of 200 by March 2013Develop and manage 16 targeted sales plans for selected GVTSCease testing at a further 10 VOSA sites

Financial Deliver financial performance in line with the Business Plan

Operational

The prohibition rate found at targeted checks of non-compliant HGV operators and drivers will be at least 12 percentage points higher than the rate found through random compliance checksDetermine 85% of goods and PSV applications unopposed and not requiring a public inquiry within 9 weeks of the date of receipt of the application and the required feeMaintain Customer Service Excellence accreditation for Operator Licensing and the Customer Service CentreMaintain customer satisfaction at 90% through the development and delivery of a strategy by 31 March 2013Deliver our Business Plan within a staff complement of 2,332Reduce the average number of working days lost per FTE for sickness absence to 7.5 daysMaintain customer take-up for operator self service transactions at 70% and Elec-tronic First Time Pass Rate reports at an average of 60%Cut carbon emissions from agency buildings and business use of vehicles by 15% at 31 March 2013, compared to a 2009/10 baselineAchieve payment of 80% of undisputed and settled invoices within 5 daysComplete 93% of Freedom of Information requests within 20 working daysProvide answers to 85% of Parliamentary Questions by due dateRespond to 85% of MPs’ correspondence within 7 working daysRespond to 80% of official correspondence within 20 working days

Our key performance measures also contribute to the wider priorities of the Government as below:

‘tackle the deficit in a fair and responsible way, ensure that taxpayers’ money is spent responsibly and get the economy back on track’

‘boost enterprise, support green growth and build a new and more responsible economic model’

‘use digital technology to drive better services and lower costs’

‘use a wide range of levers to cut carbon emissions, decarbonise the economy and support the creation of new green jobs and technology’

and the Government’s five Open Public Service principles of choice, decentralisation, diversity of provision, fairness and accountability

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Annex 2 – Glossary

ATF Authorised Testing Facility

CPC Certificate of Professional Competence

DfT Department for Transport

DSA Driving Standards Agency

FTE Full Time Equivalent

GVTS Goods Vehicle Test Station

HGV Heavy Goods Vehicle

HRTI High Risk Traffic Initiative

I&E Income and Expenditure

ICT Information and Communications Technology

IVA Individual Vehicle Approval (a pre-registration inspection for vehicles that haven’t been type approved to British or European standards)

LEC Low Emissions Certificate

MOT Annual statutory test for private vehicles

OCRS Operator Compliance Risk Score

PSV Public Service Vehicle

VOSA Vehicle & Operator Services Agency

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Visit our websites:

for commercial customerswww.businesslink.gov.uk/transport

for private motoristswww.direct.gov.uk

for corporate informationwww.dft.gov.uk/vosa

Contact us:

[email protected]

National Number0300 123 9000*

Monday to Friday - 7.30am until 6.00pm(normal working hours)

VOSA/2285/BP/MARCH12

*Calls provided by BT are charged at a low rate. Charges from other providers may vary.Shutterstock images: LOBSTER, TOMISLAV FORGO, PICMANIAC, ANDREA DANTI, SILVER TIGER, MARISH

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