It is that time of the year again where we draw your attention to the updated financial standing levels for standard operator licence holders. Albeit, this year, there is an additional change with the rate of finance being set in Pound Sterling as opposed to Euro as The Licensing of Operators and International Road Haulage (Amendment etc.) (EU Exit) Regulations 2019 has amended the relevant EU Legislation (Regulation EC 1071/2009) to take account of the UK’s departure from the European Union.
This means that the previous advised 2021 financial standing levels for standard operator licence holders and applications has changed from those published previously.
The rates that will have effect on 1 January 2021 are:
- 1st vehicle: £8,000 (previously advised as £8,200)
- Each additional vehicle: £4,500 (previously £4,550)
There is no change at the moment to the rates of finance which must be available for a restricted licence or application.
The Senior Traffic Commissioner’s Statutory Document No.2 which deals with Finance has been updated to reflect the change and the revised version is available here
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 licence.
It is a continuous requirement throughout the life of a licence and if an operator is unable to meet the financial standing requirements this constitutes a material change which must be notified to the Traffic Commissioner.
In some circumstances, a Traffic Commissioner can grant a ‘period of grace’ but this should be before an operator fails to meet the requisite level.
If you have any concerns or questions regarding the financial standing requirements, or would like us to carry out a financial standing ‘health check’, please contact Charlotte or a member of our Transport team.