Government will overhaul vehicle recovery charges from October 1.

The new system intends to bring fairness to charges paid when vehicles are removed after an accident or breakdown on the instruction of the police.

There is currently a flat rate of £105 for statutory removal of vehicles.

Details have not been finalised but proposals in the government review included charges dependent on vehicle type, its condition and location and charges assessed annually and increased in line with inflation

Road Haulage Association chief executive Roger King said: "This is an excellent outcome for the haulage industry and for the recovery sector, which has been working with a wholly unrealistic fees schedule for many years.”