Public sector recruiter and outsourcing firm The Capita Group has signed a contract with the Driver and Vehicle Licensing Agency (DVLA).

The five-year deal will provide a national Vehicle Excise Duty (VED) service that includes provision (at DVLA’s option) for a continuous insurance enforcement (CIE) service.

The contract, with a two-year extension option, is for an estimated value of £100m. Capita will provide the service from 7 November.

Paul Pindar, chief executive of Capita, says: “DVLA is committed to reducing the level of vehicle tax and insurance evasion, and Capita is pleased to be able to support them to achieve this objective.”

Simon Tse, DVLA’s CEO, adds: “Capita has put forward an innovative proposal that supports DVLA in its commitment to reduce vehicle tax and insurance evasion and offers the best value for money.”