The amount of readily accessible amounts required by Standard National and International operator’s licence holders has been varied slightly as follows:
- First vehicle: £8,000 (increased from £7,950)
- Additional vehicles: £4,450 (increased from £4,400).
The requirement to have the necessary financial standing is mandatory. A failure to comply with this may lead to serious consequences, not least the revocation of the licence. Where a licence holder is unable to fulfil this criterion it is open to them to apply to the Traffic Commissioner for a ‘period of grace’ within which to satisfy it The financial standing requirement continues throughout the lifetime of a licence and is not simply applied when the licence is applied for or varied.
The amounts required for Standard licences are reassessed annually on 1 October by reference to the value of the Euro against Sterling. There has been little movement over the last year but the current levels are very much higher than those set for 1 Jan 2016 at £6,650 / £3,700 (i.e. ca 16% lower.) It remains to be seen what will happen from January 2020 when there is a revaluation on 1 October 2019.
In our experience there is a widespread lack of understanding as to the how the financial standing regime operates, placing the licence under threat where funds are not adequate and readily available. By way of example financial resources required for a limited company operator must be held by that entity – funds in directors’ personal bank accounts are not regarded as being available to such an operator.
How financial resources are regarded as being ‘available’ to operators is less than straightforward in many cases. Many operators are unwittingly breaching the requirements.
The amounts required for Restricted licence holders remain unchanged, as they have for many years, at £3,100 for the first vehicle and £1,700. The Senior Traffic Commissioner initially consulted on reviewing the approach to the fixing of these levels in 2018. The outcome has not yet been finally concluded and there is to be further consultation with the sector in 2019.
For advice and assistance in respect of financial standing and all aspects of operator licensing get in touch with us.