18-10-04 Changes to the Minimum Financial Standing Levels
CHANGES TO THE MINIMUM FINANCIAL STANDING LEVELS REQUIRED BY HOLDERS OF HGV AND PSV OPERATORS’ LICENCES
The Department for Transport has today given notice of revisions to the minimum levels of financial backing required by holders of goods and PSV operators’ licences. This is an EU requirement.
This will affect holders of standard national, standard international and restricted licences. The most significant change is that the holders of standard national licences will now have to meet the same levels of financial standing as standard international licence holders. The original Directive had contained a derogation allowing for lower levels for national only operators. The Department for Transport has now concluded that under EU legislation the financial standing minimum should be the same for both national and international operators.
The Traffic Commissioners retain their discretion to set the financial standing levels for restricted licence holders. They propose to increase this amount in line with increases for standard international licence holders.
The revised figures are set out below and are based on the Euro exchange rate on 1 October. They will come into force on 1 January 2005 and will remain in place for five years. (Previously published rates are in brackets).
HGV & PSV | |
Standard International Licences |
|
a. First Vehicle |
£6,200 ( £5,400) |
b. Each additional vehicle |
£3,400 ( £3,000) |
Standard National Licences |
|
a. First vehicle |
£6,200 ( £4,300) |
b. Each additional vehicle |
£3,400 ( £2,400) |
Restricted Licences |
|
a. First vehicle |
£3,100 ( £2,700) |
b. Each additional vehicle |
£1,700 ( £1,500) |
Notes to editors
1. The users of goods vehicles over 3.5 tonnes and public service vehicles must hold an operator’s licence. The operator licensing system is administered by the statutorily independent Traffic Commissioners.
2. Licence holders must satisfy the Traffic Commissioner that they have available sufficient finances to safely maintain their vehicles and to properly administer the business. The required levels are set in Euros by EU Directive 96/26/EC, as amended by Directive 98/76/EC.
3. Non-Euro participating Member States are required to review the value of the Euro in their currencies every five years. The exchange rates to be applied are those on the first working day of October and come into effect from 1 January of the following year.
Page last updated: 25/09/2006