Financial Resource Consultation - Restricted Operators
This may not affect everybody reading this blog, but it will almost certainly be of interest to those with restricted operator licences or those thinking of applying for a restricted licence.
During June the Senior Traffic Commissioner released a consultation seeking the views of operators relating to the current level of financial resource required for a holder of a restricted operator licence. The level of financial standing for standard operator licence holders is set by the EU and changes annually based on the exchange rate between sterling and the Euro. The level of financial resource for restricted operator licence holders has not changed since 2004.
When applying for a new licence or a variation of an existing licence an integral part of the application is proving financial standing or resource. The Traffic Commissioners must be satisfied that the operator is in a financial position to ensure that the vehicles operated under the licence are maintained properly. This financial level is not only to be proven at the time of application but must be maintained during the life of the licence. The Traffic Commissioners can request evidence of financial standing or resource at any time.
According to the Traffic Commissioners annual report for 2016/2017, 52% of goods vehicle operators held a restricted operator licence. Currently, the differing rates for standard and restricted licence holders are:
The consultation lists several proposals for consideration.
Below is a table listing these proposals plus the new levels of financial resource and the percentage impact these new levels would have on a restricted licence holder.
This, as ever, is just a brief overview and for anybody who is or may be affected by this and wants more information the full consultation and how to respond is on the GOV.UK website: