The main licensing provisions can be found in the Goods Vehicles (Licensing of Operators) Act 1995, the Goods Vehicles (Licensing of Operators) Regulations 1995, and the Goods Vehicles (Licensing of Operators) (Fees) Regulations 1995.
THE ROLE OF THE TRAFFIC COMMISSIONERS
Traffic Commissioners are the regulators of the road transport industry in Great Britain, who are appointed by the Secretary of State for Transport but act independently from government and the enforcement agencies such as the Driver and Vehicle Standards Agency (DVSA). Their function is to ensure that only safe and reliable operators of goods and passenger vehicles are authorised to be licensed. They will consider and grant a licence based on the undertakings given by the applicant, and they will expect the operator to comply with those undertakings throughout the duration of the licence. Traffic Commissioners may take regulatory action against an operator if they fail to comply, such as revoking, suspending, or curtailing an operator’s licence.
HEAVY GOODS VEHICLE LICENCE
Goods vehicle operators’ licences can authorise the use of different classes of vehicles, or combination of vehicles and trailers. A licence authorising the use of vehicles or combinations over 3.5t maximum authorised mass (MAM) is called a heavy goods vehicle licence. This also applies for licences that authorise a mixture of heavy goods vehicles and light goods vehicles. Following a change to the rules in May 2022, operators which carry goods for hire or reward on international journeys using a vehicle or a vehicle and trailer combination with a MAM of more than 2.5t were brought into scope of the operator licensing regime. A licence that only authorises vehicles of 3.5t MAM or less is called a light goods vehicle licence.
Operators will usually need a goods vehicle operator’s licence if they use a goods vehicle of over 3.5t MAM or, where there is no plated weight, an unladen weight of more than 1,525kg, to transport goods for hire or reward in connection with a trade or business. Some vehicles, or the use of some vehicles, mean they fall under an exemption from the operator licensing requirements. Any use of a vehicle which relies on an exemption must fall exclusively within that exemption, and the operator bears the ultimate responsibility for ensuring any exemption applies to their operation or vehicle.
TYPES OF OPERATOR LICENCE
There are three types of goods vehicle operators’ licences; a standard international, standard national and restricted licence. The type of licence required will depend on the use of the vehicle.
A standard international licence allows the carriage of goods for hire or reward and on own account, within the UK and abroad. The holder of a standard international licence will also be issued with a UK Licence for the Community, which is required for all hire or reward operations in, or through EU countries and must be carried in the vehicle when abroad. A standard national licence allows the carriage of goods for hire or reward in the UK and also permits own account movements in the UK and abroad. A restricted licence allows the carriage of goods, but only on own account, within the UK and abroad.
FINANCIAL STANDING RATES
Following the UK’s departure from the European Union, the financial standing rates are no longer adjusted each January to account for the exchange rate between the pound and the euro, with financial standing rates now set in domestic legislation. Standard national and international licence applicants are required to demonstrate £8,000 for the first vehicle and £4,450 for each additional vehicle they request to be authorised. To support a restricted licence application, operators are required to show £3,100 for the first vehicle and £1,700 for each additional authorised vehicle. Operators of only lights goods vehicles must show £1,600 for the first vehicle and £800 for each additional authorised vehicle. Operators of mixed heavy and light fleets must demonstrate £8,000 for the first vehicle, £4,500 for each additional heavy goods vehicle and £800 per additional light goods vehicle authorised on the licence.
FIT FOR PURPOSE
When applying for an operator’s licence, operators need to demonstrate that they have adequate systems in place to make sure their staff are able to obey all the rules, including having satisfactory arrangements for ensuring compliance with drivers’ hours rules, arrangements to ensure vehicles are not overloaded, speed limits are obeyed and that drivers have the correct licence and training to drive goods vehicles. For heavy goods vehicle licences, an operator must also specify a suitable operating centre at which there is sufficient capacity for heavy goods vehicles to be kept when they are not in use.
A licence authorises the holder to use a maximum number of vehicles and if applicable, trailers, which is known as the authorisation. If an operator tows trailers, they must have the authority to operate these under their licence whether the operator owns them or not, and they must be maintained in a roadworthy condition in line with the stated maintenance interval.
MARGIN MATTERS
The margin is the difference between the number of vehicles authorised on the licence and the number of vehicles in possession. For example: if a licence specifies the use of 20 motor vehicles and 20 trailers but there are eight motor vehicles and six trailers specified on the licence (for which vehicle-specific discs have been sent), the margin is therefore 12 motor vehicles and 14 trailers.
RECENT LEGAL RULING
Following a recent legal decision made by the Upper Tribunal, it was ruled that all goods vehicles in ‘possession’ of an operator are deemed to be ‘in use’ and must be authorised under the operator’s licence.
The Traffic Commissioners were aware of a practice in some areas of the road freight industry where operators had more vehicles in their possession than they were authorised for on their licence. Some operators had been specifying vehicles when carrying out a specific operation, and then exchanging them on the licence for another vehicle. One example was an operator removing one or two rigids each evening and replacing them with articulated lorries for the overnight trunk. A less blatant but still non-compliant example was where an operator with a licence authorising 20 vehicles, had 21 vehicles in their possession and used the spare vehicle as a replacement whenever one of the other 20 vehicles was being serviced or inspected.
This ruling means that operators must specify all goods vehicles in their possession onto their operator’s licence even if they are not used on a public road all the time. If an operator is found to have more vehicles in their possession than authorised on their operator’s licence, regulatory action may be taken.
For any advice on the subjects covered in this article, members can call the Logistics UK Member Advice Centre on 0370 605 0000 or email MAC@logistics.org.uk.
*www.logistics.org.uk/mac
