The government has launched an independent review of the Driver and Vehicle Licensing Agency (DVLA) so it can be future-proofed.
Westminster says a keen focus will be digital services as more than 80% of transactions are now carried out online.
This will “keep drivers and vehicles on the road simply, safely and efficiently”, it added.
Roads Minister Richard Holden said: “This review will help us understand how the DVLA can continue to grow from strength to strength and how we can support it to become more digital to efficiently serve the increasingly digitally savvy driver.”
With over 50 million driver records and more than 40 million vehicle records, the DVLA maintains the correct registration and licensing of millions of drivers while protecting data and tackling vehicle tax evasion.
DVLA also collects £7 billion in vehicle excise duty annually on behalf of HM Treasury and is a net contributor to government finances, raising more than £260 million in 2022-23 for HM Treasury and the Department for Transport (DfT) through the sale and processing of personalised registrations and transfers.
DVLA non-executive chair, Lesley Cowley OBE, said: “Our customers remain at the heart of everything we do at DVLA and we welcome this review as an opportunity to highlight our commitment to delivering world-class services, our role in keeping Britain’s roads safe, and the continued hard work and dedication of our over 6,000 staff.
“It comes at an important time for DVLA, as we continue to launch new digital services and set ambitious targets for the future, as a forward thinking, dynamic organisation.
“We look forward to working closely with the government in support of this review over the coming weeks and months.”
Janette Beinart, non-executive director of the Cabinet Office and National Highways and previously vice president and global chief information officer at Shell International, has been appointed to lead the review with support from DfT officials.
The review – which will assess DVLA based on the 4 pillars set by the Cabinet Office of efficiency, efficacy, accountability and governance – is expected to conclude this winter.