Roads minister Stephen Hammond has confirmed that plans to introduce a new business model for the Vehicle Certification Agency (VCA) are going well.

The government is challenging all public sector bodies to come up with innovative new ways to improve customer services and a number of agencies have already been overhauled.

Mr Hammond said the next phase of a project aimed at devising a new commercial framework for the VCA has begun.

"We have examined the VCA business model and tested a range of options to enable the business to grow and contribute to the wider economy," he remarked.

The MP also suggested the reforms would open up new opportunities for VCA staff.

Last month, the authorities revealed the Driving Standards Agency and Vehicle Operator Services Agency would merge in 2014, which is arguably the biggest departmental reshuffle to date.

Mr Hammond thinks that aligning the two bodies could lead to lower customer fees in the long run.