New Financial levels set for Operator Licencing

New requirements for achieving financial standing for Standard operator licences were announced by the British Government on 20th November 2014.

Despite the financial standing requirement for new applicants and licence holders not changing within the law for some years, exchange rates between pounds and euros continue to fluctuate, affecting the value in pounds required to comply with EU Regs.

(EU Regulation 1071/2009 states that 9,000 Euros for the first vehicle and 5,000 Euros for each subsequent vehicle are required for Standard Licences.)

For those of us based outside the “Euro Zone” this means that the equivalent in pounds must be reviewed every year, based on the euro exchange rate on the first working day of October.

Although the new rates will not be a legal requirement until January 1st 2015, Traffic Commissioners have stated that applicants and existing operators will be asked to produce evidence meeting the new criteria from 1st December 2014.

The new rates are £7,000 for the first vehicle (previously £7,400) and £3,900 for each subsequent authorised vehicle (previously £4,100).

There is no change to Restricted licences, which remain at £3,100 for the first vehicle and £1,700 for each subsequent authorised vehicle.

The fact that the requirements have not increased may bring a sigh of relief to operators whose cash flow should see a slight improvement.

Silk Thread Tip: Despite the fact that the requirements are marginally less onerous under the new figures, take this opportunity to revisit your financial structure. Would a Traffic Commissioner see how your cash flow and other acceptable sources will ensure sufficient funds to run the fleet in a safe, environmentally considerate manner?