Last reviewed 10 November 2020

The Senior Traffic Commissioner’s Statutory Document No. 2 on Finance has been updated to reflect new financial standing levels for January 2021. The new levels will be £8200 for the first vehicle and £4550 for each subsequent vehicle.

These levels are in increase on the 2020 figures of £8000 and £4450.

The revised version of the Document, which can be found at assets.publishing.service.gov.uk, replaces the previous edition dated January 2019.

It explains how the Senior Traffic Commissioner believes that Traffic Commissioners should interpret the law in relation to the requirements for financial standing.

Applicants for a standard licence must be of the appropriate financial standing, as required by the Goods Vehicles (Licensing of Operators) Act 1995 and the Public Passenger Vehicles Act 1981.

The guidance explains that, under the relevant EU legislation, Regulation (EC) 1071/2009 establishing common rules concerning the conditions to be complied with to pursue the occupation of road transport operator, there are three ways in which the continuing and mandatory requirements can be satisfied for standard national and international operators:

  • certified annual accounts comprising balance sheet, profit and loss accounts and notes on accounts;

  • certified opening balance for new operators — a properly accredited person can provide a statement of assets and liabilities before they start trading; or

  • financial guarantee.

However, the EU Regulation does not contain an exhaustive list.

This therefore allows Traffic Commissioners to consider other evidence such as a bank guarantee, an insurance policy (including professional liability insurance) from a financial institution, joint and several guarantees as well as overdraft facilities, credit facilities and invoice finance agreements which they have previously taken into account.