On 4 December 2018, the Office of the Traffic Commissioner confirmed the 2019 financial standing levels for standard operator licence holders. The levels also apply to new standard operator licence applications and variation applications. The revised financial standing levels will come into effect on 1 January 2019.
In order to satisfy the financial standing requirement, standard licence operators and applicants will be required to show access to:
First vehicle: £8,000
Each additional vehicle: £4,450
First vehicle: £7,950
Each additional vehicle: £4,400
The levels are calculated in relation to the exchange rate of the Euro and it will remain to be seen whether Brexit will have any effect on future levels.
It is important to remember when assessing financial standing that it is calculated for the maximum number of vehicles an operator is authorised to operate and not the number of vehicles that it currently operates.
There are currently no changes in relation to the financial standing requirement for restricted licence holders. The levels of finance required for restricted licence holders or applicants remains at £3,100 for the first vehicle and £1,700 for each additional authorised vehicle.
Earlier in the year, the Traffic Commissioners opened a consultation to hear responses from the industry about potentially changing the restricted licence financial levels, however, the number of responses was disappointing and they plan to engage further with restricted licence stakeholders and seek views from the Department for Transport before making a final decision.
Financial standing is an integral part of the licensing system and must be able to be shown in order to be awarded and continue to hold an operator’s licence. It is a continuous requirement and if an operator is unable to meet the financial standing requirements this constitutes a material change that must be notified to the Traffic Commissioner. A Traffic Commissioner can grant a ‘period of grace’ within which an operator can reprove the financial standing requirement is met but this should be before an operator fails to meet the requisite level.
If you have any concerns or questions regarding the financial requirements, or would like us to carry out a financial standing ‘health check’, please contact a member of our Transport team at either our Milton Keynes office 01908 202150 or Cambridge office 01223 411421.