Applying for an O-Licence

The process for applying for an operator licence is now entirely digital. You can apply via the Gov.uk portal, which you can log in to here:

https://www.gov.uk/apply-vehicle-operator-licence

Authorised Vehicles

You will be asked to state the number of vehicles that are to be authorised on the licence. It is usual practice to request authorisation for more vehicles than are to be initially operated as this provides a “margin” for expansion. Adding vehicles within the margin is a simple process but adding vehicles beyond the margin is described as a “major variation” and is effectively a completely new licence application.

Safety Inspections

The application requires information on the interval between vehicle safety inspections and who will carry them out. If maintenance is carried out by a third party there must be a contract in place and a copy must be made available in the application.

Operating Centres

Details of all operating centres and the number of vehicles to be parked at each are required.

Applications and Decisions

Details of all licence applications and Traffic Commissioner decisions are published in a fortnightly document titled Applications and Decisions. In this document you can find:

• new applications
• significant variations
• dates and places of proposed enquiries and applications
• decisions — including details of cases under transitional provisions that have been refused completely or partly
• any direction to revoke or curtail a licence.

Copies of Applications and Decisions may be viewed on the DVSA website. You can also sign up for updates here: https://www.gov.uk/government/collections/traffic-commissioner-applications-and-decisions

Newspaper Advertisement

The licence applicant is required by law to place an advertisement (officially described as a “notice”) in a local newspaper that has a circulation covering the area in which the operating centre or proposed operating centre is situated.

This notice:

• allows any person who is the owner/occupier of land in the vicinity of the operating centre to make representations to the Traffic Commissioner against the grant of or a variation to a licence on environmental grounds (limited to noise, visual intrusion or other relevant disturbance)
• must be published in the newspaper no more than:

1. 21 days before the application is submitted, or
2. within 21 days of its submission

• must contain specific wording, an example of which is set out in Annex A of the GV79.

The whole page containing the advertisement including the full title of the newspaper must be sent to the Leeds Traffic Area Office either with the application form or as soon as possible afterwards.

A licence will be refused by the Traffic Commissioner if the notice has not been advertised as required.

Objections and Representations Against a Grant

Certain parties may issue an objection to the granting of an o-licence.

Statutory objections

The following organisations, and only these organisations, have a statutory right to object to the grant of or variation to an operator's licence:

• The British Association of Removers.
• The Freight Transport Association.
• The Road Haulage Association.
• The Transport and General Workers' Union.
• The Union of Shop, Distributive and Allied Workers.
• The United Road Transport Union.
• The General and Municipal Workers' Union.
• The National Union of Rail, Maritime and Transport Workers.
• A chief officer of police.
• A local authority.
• A planning authority.

Statutory objectors can challenge the licence applicant on the grounds that:

• he/she is not a fit and proper person to hold a licence, having regard to their activities and/or convictions during the past five years
• he/she will not make satisfactory arrangements to control drivers' hours
• he/she will not make satisfactory arrangements to ensure that their vehicles are not overloaded
• he/she will not maintain his vehicles in a fit and serviceable condition and the proposed operating centre is not suitable for that purpose
• the maintenance of his/her vehicles will be prejudiced by insufficient financial resources
• he/she is applying for a standard licence and financial resources are inadequate to administer the undertaking (including any new undertaking being launched)
• he/she is applying for a standard licence and does not have, or employ personnel with, the necessary professional qualifications
• the operating centre is unsuitable on environmental grounds.

Environmental representations

In addition to the statutory objectors, owners or occupiers of land in the vicinity of a proposed operating centre may make environmental representations. Such representations must be made by the actual owner of the land and will not be accepted from bodies such as Parish Councils, residents’ associations and others who do not actually own the land.

Those making environmental representations may do so only on the grounds that their use or enjoyment of their land will be adversely affected by the proposed operating centre. They must be directly affected by the use of the operating centre and not as a result of traffic on highways.

The Traffic Commissioner will not consider an environmental representation if:

• at the time of the application the place was already specified in an operator's licence as an operating centre of the holder of that licence (provided it is not an interim licence), or
• a certificate is produced showing that its use as an operating centre is lawful under Town and Country Planning legislation.

Evidence of Financial Standing

You must provide evidence of financial resources in your application. This evidence can include:

• bank statements covering the last 28 days (no more than two months prior to the date the application’s received, including any evidence of an overdraft facility)
• audited accounts
• a signed invoice finance agreement with confirmation of available balances not drawn down averaged over a 3-month period.

Financial Standing Rates for 2018

Each year the finance that an HGV or PSV operator must have readily available in order to satisfy its legal obligation to be of “appropriate financial standing” is reviewed and where appropriate, changed with reference to EU exchange rates. As operators will be well aware, the amount an operator must have available to it is calculated with reference to the number of vehicles authorised under its operator’s licence.

For standard licences the rates applicable in 2018 have increased from the previous year, although those for restricted licences remain as they currently are.

The 2018 rates are:

1. For standard national or standard international licence holders:
• £7,950 for the first vehicle authorised; and
• £4,400 for each additional vehicle authorised.
2. For restricted licence holders:
• £3,100 for the first authorised vehicle; and
• £1,700 for each additional authorised vehicle.

The financial standing position in relation to all new licence applications, variation applications and licence continuations will be assessed in accordance with these rates.

JUST ANNOUNCED: Financial Standing Rates for 2019

For standard national and international license holders:

• £8,000 for the first vehicle authorised; and
• £4,450 for each additional vehicle authorised.

For restricted licence holders, the rates will not change. 

I reckon that’s quite enough for this week. We’ll be rounding things off in next week’s post; Part III will delve into maintaining your o-licence, and will cover the duration and reviewing of o-licences, and how going into administration and accruing criminal convictions affect your repute.

In the meantime, if you're looking to take the bull by the horns, find out what what it takes to pass the Transport Manager CPC: