Announced by Chief Secretary to the Treasury, Danny Alexander, and Transport Minister Claire Perry, the proposal is part of a public consultation on licensing fees announced today, in turn part of an ongoing process of reviewing the fees charged to motorists.

This will set out different pricing for digital and paper-based applications, with prices reduced by 32% and 15% respectively compared to the outgoing fee structure.

It would mean drivers renewing their licence after ten years would see the fee reduce from £20 to £14, while tachograph cards will reduce from £38 to £32. New applications will drop significantly, from £50 to £34.

Chief Secretary to the Treasury, Danny Alexander said: 'I have been working hard to drive savings across the whole public sector and it’s great to see the benefit of these efficiencies feed through to drivers and businesses pockets. What the DVLA have shown today is that you can do more for less.'

Transport Minister Claire Perry said: 'The cost of driving can be significant, especially for new drivers. I’m pleased to say that we are planning to save drivers £18m a year by cutting licence fees, thanks to the DVLA making significant savings to their running costs.'

The consultation ends on the 25th of August and, if approved, the changes will come into effect from October 2014.

Video available here.