The government have announced the new financial standing levels for 2017. Although there is no change to the levels for restricted operators, there has been a large increase in the amount that the holder of a standard licence needs to show to satisfy the requirement of financial standing. The amounts have changed from the current £6650 for the first vehicle to £7850, with effect from 1 January 2017 and from £3700 to £4350 for each subsequent vehicle.
Over the past few years the annual announcement of the financial standing requirements has seen a regular drop in the amounts required for a standard licence. This may have lulled operators into a false sense of security. The rates are set each year in accordance with the pound/euro exchange rate on the first working day in October and unfortunately this year reflect the fall in the value of the pound.
The increases represent a significant change in the amounts required and are of concern as an operator should at all times satisfy the requirement to be of appropriate financial standing and has an obligation to notify the Traffic Commissioner of any material changes. Operators should review their financial resources against the new requirements and if necessary take appropriate action. Options could include removing unnecessary authorisation or asking the Traffic Commissioner to grant a period of grace, although this can only be for a maximum of 6 months. If you feel that you need specific advice on the implications of the new levels, then please telephone me on 01756 790631