Financial standing rate increases from 1 January 2018

 

The level of financial standing that standard O-licence holders will be required to demonstrate from 1 January has increased slightly, following the drop in the value of value of the pound.

Applicants and existing operators will be required to demonstrate £7,950 (previously £7,850) for the first vehicle and £4,400 (previously £4,350) for each additional vehicle they request to be authorised on their O-licence.

The financial standing requirement for restricted O-licence holders will remain the same at £3,100 for the first vehicle and £1,700 for each additional vehicle.

From 1 January, operators making applications to vary their O-licences will be required to produce evidence of meeting the revised criteria for their existing fleet as well as any additional vehicles.

Operators who appear at a public inquiry will also need to demonstrate the required funds.

Earlier this year the FTA urged the government to consider setting its own rate of financial standing post-Brexit. It is currently is set in EU law at €9,000 for the first vehicle and €5,000 for each additional vehicle.