The financial standing system should be completely reviewed when the UK leaves the EU, according to the FTA.

The association said it would be "absurd" for the UK to continue to require O-licence holders to demonstrate a level of finance set by European law post-Brexit on 29 March 2019.

James Firth, the FTA's head of licensing and compliance information, said: "Transition period or not, it would be absurd if the domestic UK road transport industry continued to be pegged to a financial standing rate in Euros after Brexit.

“This means the UK needs to consult with industry, or select a level at which business is to be judged, to ensure that operators are able to plan efficiently and manage cash flows accordingly," Firth added.

Although the rate operators will be expected to show in 2018 has not yet been set by the Office of the Traffic Commissioner, the FTA said this is likely to remain similar to the current rate of £7,850 for the first vehicle and £4,350 for additional vehicles for standard O-licence holders.

It said this was due to the Euro to Sterling exchange rate remaining almost the same today (2 October) than the same date last year. The financial standing level is set in EU law at €9,000 (£7,966) for the first vehicle and €5,000 (£4,225) for each additional vehicle for standard O-licence holders, and is reassessed in the UK every year depending on the exchange rate on the first working day in October.

Firth noted that own-account operators have enjoyed a much lower rate than third-party hauliers. This is currently £3,100 for the first vehicle and £1,700 for each subsequent vehicle.

He said: “What are the greater financial risks to the hire and reward sector that the government perceives justify continued rates so substantially elevated above those in the own account sector - which, of course, takes in almost every type of industry and sector across the UK economy?”