The level of financial standing standard O-licence holders will have to demonstrate is likely to increase in 2017, due to the drop in the value of the pound against the euro.

The FTA estimated that the financial standing rate will increase by around 15% from 1 January, taking it from £6,650 to £7,800 for the first vehicle, and from £3,700 to £4,300 for each additional vehicle.

Under EU law, the rate is set at €9,000 for the first vehicle and €5,000 for subsequent vehicles. The amount operators in the UK are expected to have available at all times is recalculated by the DfT on an annual basis according to the exchange rate on the first working day in October.

FTA head of member advice Es Shepherd said: “The increase would come as a sudden shock to operators who will need to demonstrate these extra reserves by the New Year."

The financial standing requirement for own-account does not usually change, the FTA said. Restricted O-licence holders must currently possess a minimum of £3,100 for the first vehicle and £1,700 for each subsequent vehicle.

A new rate of financial standing for 2017 has not yet been set by the DfT.

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