‘Set financial standing levels in pounds, not euros’

The Freight Transport Association (FTA) has called for the UK to set its own transport operator financial standing requirements in pounds sterling after Brexit is formalised in 2019 – or to review the system altogether.

The financial standing system aims to ensure O-licence holders have sufficient funds to operate, and enough money in reserve to ensure they are not tempted to cut corners on maintenance. These rates are uniform across the EU for standard O-licences, and fluctuate with the euro exchange rate for non-Eurozone countries.

But James Firth, FTA’s head of licensing policy, said it would be “absurd” for the UK transport industry to be required to meet levels of financial standing in euros after Brexit.

“The UK needs to consult with industry, or select a level at which business is to be judged, to ensure that operators are able to plan efficiently and manage cash flows accordingly,” he said.

“Between 2012 and 2016, the actual figure required has fluctuated by almost £2,000 for the first vehicle, simply based on the changes in the exchange rate for euros – this situation needs urgent attention to ensure that stability for business expenditure can be established moving forwards.”