Minimum cash requirement for O-license holders to increase

From 1st January 2010 the minimum financial requirement to become a hire or reward O-licence holder will increase by £1,900 and by £900 for every additional vehicle. Any holder of, or applicant for, O-licence operating for reward or hire will need to prove a minimum economic level requirement of £8,100 for the initial vehicle on a standard international and national licence. Previously, the level was £6,200. Also, the minimum economic level requirement for every extra vehicle will rise to £4,500, for the present level of £3,400.

As the Traffic Commissioners preserve the judgment to set the economical levels for limited licence holders, the fiscal standing for limited O-licences will be frozen at £3,100 for the initial vehicle and £1,700 for every additional vehicle. These figures will however, remain until 31st December 2011.

Economical limits for O-licence owners are set out in the EU Directive 96/26/EC at €9,000 for the initial vehicle and €5,000 for every subsequent vehicle. This Directive needs countries that are not a constituent of the Euro to modify the restrictions every five years, with the help of exchange rate on the initial working day of October.

Freight Transport Association’s head of road freight and enforcement policy, Joan Williams said that it is very unfortunate that the 5 yearly change falls at the time when sterling is quite weak. He also said that the enforcement policy will not only have an unwelcoming impact on international and standard licence holders, but also on new applicants.