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Financial Requirements for Operators Licences
Standard Operators Licence
The amount of financing required for a Standard Operators Licence is determined by the Secretary of State for Transport. The specific levels for a Restricted Licence are set after consultation with the Traffic Commissioners.
Standard National/International Operators Licence
According to Section 13A(2)(b) of The Goods Vehicles (Licensing of Operators) Act 1995, the traffic commissioner must verify that the applicant has the appropriate financial standing, as outlined in paragraph 6A of Schedule 3. Operators need to show they have, at all times, the following capital and reserves:
£8,000 for the first heavy goods vehicle
£4,500 for each additional heavy goods vehicle
£800 for any authorised light goods vehicles
Operators with only light goods vehicles need £1,600 for the first vehicle and £800 for each additional.
Restricted Licence
The Senior Traffic Commissioner for Great Britain issues directions regarding financial standing for Restricted Operators Licences under section 4C(1) of the Public Passenger Vehicles Act 1981 and section 1(2) of the 1995 Act. These levels are:
£3,100 for the first heavy goods vehicle
£1,700 for each additional heavy goods vehicle
Assessing Financial Standing
To satisfy the continuous financial requirements, the operator can submit bank statements for a 3-month period, showing the average balance and any available overdraft or credit facility. Other acceptable proofs include credit card facilities or factoring arrangements. Each case is assessed individually, especially for new applicants who may only show financial access for one month before starting their business.
For digital applications, the traffic commissioner may request original documents.
Consequences of Non-Compliance
If an operator fails to meet the financial standing requirements, they risk having their licence revoked. This requirement is ongoing and is checked every five years during the licence renewal process, or if the operator is called to a Public Inquiry or Preliminary Hearing.
What to Do if You Don't Meet Requirements
If you know you don't meet the financial requirements, you must notify the Traffic Commissioner. You can request a period of grace to organise your finances. This grace period is only granted if there is a realistic chance of achieving compliance; it is not intended to allow trading back into compliance.