2021 financial standing level revised downwards by TCs

Financial standing levels for 2021

The financial standing level required of holders of standard O-Licences has been revised downwards slightly for 2021, the Traffic Commissioners (TCs) have announced.

Rates that came into effect on 1 January are now £8,000 for the first vehicle and £4,500 for each additional vehicle for those operators. Previously, the TCs had stated that the figures would be £8,200 and £4,550 from that date, respectively.

The late change to levels for 2021 – which was announced on 30 December 2020 – has come about thanks to powers set out in the European Union Withdrawal Act 2018. They allow the rate of financial standing to be set in Sterling, rather than in Euros.

Previously, financial standing levels were subject to an exchange rate conversion from €9,000 for the first vehicle on a standard O-Licence and €5,000 for each additional vehicle. The revised Sterling figures are now fixed in legislation and will not be subject to further alteration without a change to that legislation.

Senior TC Richard Turfitt has updated Statutory Document 2 to take account of the revision. For holders of restricted O-Licences the financial standing requirement remains unchanged. It is £3,100 for the first vehicle and £1,700 for an additional vehicle.