Promoting fair competition – financial standing

New licence holders who fail to provide evidence face revocation

Every operator has to provide financial evidence when they apply for a licence.

It’s an essential part of the operator licensing scheme and helps promote fair competition.

And that’s important for your business – knowing other licence applicants are required to meet the same standards.

Some new operators can only show the required amount at the time they apply. That’s usually because the business has just been set up. So the licence is granted with an agreement that they’ll send in more financial evidence when it’s available and by a set date.

The Office of the Traffic Commissioner keeps a close eye on these cases.

We’ll write to the operator to request the financial evidence, if it’s not sent by the deadline.

And where the operator doesn’t respond, the Traffic Commissioner will propose to revoke the licence.

The operator can ask for a public inquiry. But if they still can’t satisfy the financial tests then the licence will be revoked.

That’s exactly what happened to a scaffolding company in the North West.

Our recently updated guidance on financial standing is available here.