The Traffic Commissioners for Great Britain are considering whether to change the financial standing levels required for operators who hold restricted licences.
Operators will be familiar with the financial standing requirement which must be shown in order to be awarded and continue to hold an operator’s licence. It is an integral part of the licensing system and if an operator is unable to show that they have the requisite financial standing, their licence could be called into question.
Financial standing levels for standard licence holders are set according to EU regulations and Traffic Commissioners do not have any influence on the amount. The levels have changed every year for standard licences depending on the exchange rate. Conversely, for restricted licence holders, Traffic Commissioners have decided the level for which it should be set. As such, there has been no change to the financial standing levels for restricted licence holders since 2004.
The Traffic Commissioners for Great Britain are considering the following options for the restricted financial levels:
- To remain the same;
- Increase the levels in line with the Consumer Price Index since 2004;
- Increase the levels in line with the Consumer Price Index since 2013;
- Increase the levels in line with the percentage increases for standard licences since 2014;
- Increase the levels in line with the percentage increases identified by the Road Haulage Association since 2011;
- Standardise the levels with those set for standard licence holders; or
- Reduce the levels.
The consultation seeks to hear responses from the industry, including restricted licence holders. The consultation process closes on 31 August 2018 and should you wish to respond you can visit the following link for more information https://www.gov.uk/government/consultations/restricted-licence-holders-level-of-financial-resources.
If you have any concerns or questions regarding the financial requirements for your licence, please contact a member of our Transport Team at our Milton Keynes office on 01908 202150 or our Cambridge office on 01223 411421.