Financial Standing Rates for Transport Operators – 2018
Each year the finance that an HGV or PSV operator must have readily available in order to satisfy its legal obligation to be of “appropriate financial standing” is reviewed and where appropriate, changed with reference to EU exchange rates. As operators will be well aware, the amount an operator must have available to it is calculated with reference to the number of vehicles authorised under its operator’s licence.
The rates which apply from 1st January 2018 have been published by the Department for Transport and thanks to the weakness of the pound against the Euro, the rates for standard national and international licence holders have increased, although those for restricted licences remain as they currently are.
The new rates which are now in effect for 2018 are as follows:
- For standard national or standard international licence holders:
- £7,950.00 for the first vehicle authorised; and;
- £1,700 for each additional vehicle authorised.
- For restricted licence holders:
- £3,100.00 for the first authorised vehicle; and
- £1,700 for each additional authorised vehicle.
The financial standing position in relation to all new licence applications, variation applications and licence continuations will be assessed in accordance with these rates.
By way of a reminder – the required funds must be readily available to the operator and the Traffic Commissioner may request evidence of financial standing from any operator’s licence holder at any time. Operators should refer to the Senior Traffic Commissioner’s Statutory Docuement 2 – Finance (available via: https://www.gov.uk/government/publications/traffic-commissioners-finance-december-2017) for full details of the evidence that will be accepted as proof that the requirement is fulfilled.
Alternatively, or for any further advice on what is required to ensure that you meet the requirement to be of appropriate financial standing, please do not hesitate to give us a ring on 01279 818280 where one of our team will be happy to help.