The new financial standing levels in effect from 1 January 2015 have been announced by the Department for Transport. Standard National and Standard International licence applicants and holders will have to demonstrate ready access to £7,000 for the first vehicle and £3,900 for each additional vehicle (revised downwards from £7,400 and £4,100, the 2014 rates).
NB the total amount of finance required is calculated on the basis of the maximum permitted licence size, not the number of vehicles actually specified or in use.
The net effect of this change is that the revised rates apply from 1 January 2015 onwards to applicants for new licences or variation of licences (as well as also to licence holders otherwise being asked for financial standing evidence e.g. at public inquiry). Applications lodged from 1 December 2014 will be processed applying the new figures.
The rate set for Standard National and Standard International licences is reassessed each year, having regard to the value of the Euro against the pound on 1 October. The required amounts in EU Regulation 1071/2009 are €9,000 for the first vehicle and €5,000 for additional vehicles.
Issues surrounding financial standing requirements seemingly continue to cause constant difficulties for operators. ‘Ready access’ to the requisite financial standing amounts has a specific interpretation and fulfilment of the financial standing criterion is an ongoing commitment for operators that must be fulfilled.
Restricted licences: the rates of finance here remain unchanged at £3,100 for the first vehicle and £1,700 for additional vehicles. These rates have remained in force for some considerable time.
For further assistance and guidance, please contact transport solicitor in Cambridge, Tim Ridyard.