The Freight Transport Association (FTA) is calling on the UK government to set its own rates of ‘O’ Licence operator’s financial standing in pounds sterling, not euros, after Brexit on 29 March, 2019.

The requirements for financial standing seek to ensure that operator licence holders have sufficient funds to work in the logistics sector, and have sufficient reserves to prevent cuts in vehicle maintenance to make cost savings. For standard operating licence holders, European law currently requires bank reserves of EUR 9,000 for the first vehicle and EUR 5,000 for each subsequent vehicle. For EU countries which do not use the euro, the rate is reassessed against the exchange rate of the local currency every October. For non-Eurozone countries, this can create fluctuations year to year.

James Firth, FTA's Head of Licensing Policy said, "Transition period or not, it would be absurd if the domestic UK road transport industry continued to be pegged to a financial standing rate in euros after Brexit. This means 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. 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.”

The Office of the Traffic Commissioner is expected to announce the official rates for financial standing in 2018 in the coming weeks.