For standard licence applicants and operators, financial standing levels are set at a fixed amount (in Euros), according to EU regulations. As a result, traffic commissioners do not have any influence on those figures. The amounts change every year for applicants and operators in England, Scotland and Wales, depending on the exchange rate. For restricted licence applicants and operators, traffic commissioners have decided what level the financial requirement should be set at. The levels for restricted licence holders have not changed 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.
Any changes could have a dramatic impact on restricted licence holders. For example, an inflationary increase based on the Consumer Price Index (CPI) since 2004 would see the level required for the first vehicle increase from £3,100 to £4,269.46 and the figure for each additional vehicle from £1,700 to £2,341. A restricted licence holder with authorisation for ten vehicles could see financial standing levels increase from £18,400 to £25,698.46 - an additional £7,298.46. If levels were brought in line with that of standard licence holders, such an operator would be required to demonstrate an additional £29,150 of continuously available funds.
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.
The content of this article is for general information only. For further information regarding any of these topics, please contact Daniel Hart.
This article is from the June 2018 issue of Deliver, our newsletter for those working within the road transport and logistics sector. To download the latest issue, please visit the newsletter section of our website. Law covered as at June 2018.
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