Financial standing requirements for operators cut

New financial standing requirements represent a saving of £400 on the first vehicle, and £300 for subsequent vehicles, in funds that operators must hold to meet O-licence regulations.

From 1st January operators need £7,700 for the first vehicle and £4,200 for each additional vehicle. a reduction from £8,100 and £4,500 respectively. A weaker Euro explains the cut.

The Office of the Traffic Commissioner must use the exchange rate published in the Official Journal of the European Union on the first working day of the previous October. The level for 2012 is based on €1 to £0.85.

The requirement for restricted licences remains unchanged at £3,100 for the first vehicle and £1,700 for additional vehicles.

The Road Haulage Association welcomes the move. "Every little helps, it’s a more realistic valuation," says director of policy, Jack Semple. A survey of RHA members for the Government’s logistics growth review showed that cash flow, finance, poor roads and congestion headed their concerns.

However, Paul Arthurton, owner of Paul Arthurton Transport in Attleborough, Norfolk believes the cuts will make little difference. "I run 14 vehicles and will need £4,300 less. It’s about 5% - it’s not as though they’d halved it."

He adds that regulation needs to be tightened since phoenix companies still manage to get an O-licence.