The Driver and Vehicle Licensing Agency (DVLA) has said it collected an estimated 98.5% of all potential revenue from road tax in 2007.

This year the survey was based on the use of Automatic Number Plate Recognition (ANPR) cameras, which is said provided a more accurate picture of Vehicle Excise Duty evasion.

Jim Fitzpatrick, Transport Minister, said: "Using ANPR technology gives us a much clearer picture of the level of road tax evasion. I am pleased to see that this survey indicates a low level of evasion.

"However, there is no room for complacency and we will be increasing the pressure on those who fail to properly license their vehicles. There is no way out for road tax evaders."

Previously road tax evasion figures were mainly collected manually but the figures are now primarily compiled using Automatic Number Plate Recognition technology.