The DVLA has revealed plans to increase the fee for a vehicle’s first registration by £12 from May 1.

It is currently £38. This 32% hike will be followed by two further annual increases, on April 1, 2008 and 2009.

The proposal follows a public consultation of the agency’s fee structures and was signed by ministers on March 23. The last increase in the first registration fee took place in January 2004, when it rose from £25 to £38.

In the same year the DVLA introduced a £19 charge for replacement registration certificates (V5C), previously free. Dealers are advised this will also increase to £25 on May 1 this year.