The Association of Businesses in Cupar and District (ABCD) has written to Driving Standards Agency chief executive Rosemary Thew and North East Fife MP Sir Menzies Campbell about the centre in Burnside, which is due to shut by the end of September.

ABCD vice-chairman Paul Weinberger said apart from the loss of business to Cupar, his group believed the decision would result over time in thousands of extra car miles being travelled to use centres in Kirkcaldy or Dundee.

"At this time when government in all its guises is spending considerable sums to reduce the impact on our environment, this decision would seem to us to be somewhat perverse as it will result over time in a lot of extra fuel being burnt, along with increases in all the other environmental and social costs associated with car journeys," he said.

"I suppose that there is not necessarily an environmental remit within the DSA's constitution, nor any need to consider expense incurred by the general public as a result of its decisions, but is this not an example where some joined-up thinking might result in a better overall decision?"

Mr Weinberger asked Ms Thew to reconsider the closure, which the DSA confirmed last month.

"I have no doubt that there are savings to be had for the DSA, and they would rightly always be looking to make savings for the taxpayer," he said.

"However, the total extra cost to the economy, and to the people of Cupar and the east side of Fife would, if taken into account, make any administrative savings for the DSA appear far less attractive."