Call for evidence outcome

Changes to the UK operator licensing regime and arrangements for the temporary posting of workers in the UK and EU: request for evidence

Updated 24 January 2022

Foreword

This consultation seeks to collect evidence and views on changes to the operator licensing regime within the UK that need to be made following the conclusion of the UK-EU negotiations and the signing of the Trade and Cooperation Agreement (TCA) (PDF, 7.4 MB).

As part of this agreement, the UK has agreed to implement elements of the EU Mobility Package, with 2 main areas of change which are the subject of this call for evidence, becoming applicable in February 2022 (posting of workers and some HGV operator licensing changes) and May 2022 (operator licensing).

In May 2022, there will be changes to the UK operator licensing regime. The most significant change is an expansion in the goods operator licensing regime to include vehicles used for hire and reward that weigh more than 2.5 tonnes and up to 3.5 tonnes (including when used in combination with a trailer) which will apply from May 2022.

This change will bring vehicles such as vans used by couriers and delivery services (among others) internationally (including to the Republic of Ireland) into the scope of operator licensing for the first time.

These changes do not apply to light goods vehicles (LGVs), such as vans, which are only used domestically within the UK, and do not travel internationally. Vehicles that are incidentally used only, as part of someone’s work – for example, vans used by plumbers, electricians, or other tradespeople to transport themselves and their tools – are also out of scope.

This consultation also includes a short section on changes that will affect operators of heavy goods vehicles (HGVs), who engage in international operations from February 2022. The changes relate to slight changes in the requirements associated with effective and stable establishment, good repute and competence.

There will also be changes in February 2022 relating to the posting of drivers. Generally, the term ‘posted worker’ means a worker who, for a limited period, carries out their work in the territory of an EU state other than the state in which they normally work. The changes described in this document are related to procedures specific to goods vehicle drivers in the context of commercial road transport provided for in the TCA.

This is a different situation to drivers working for an organisation established as an operation in the EU, even if that is for a brief period. Other rules are liable to apply to this type of working.

The TCA allows UK goods vehicles (subject to other conditions) to be used for bilateral transports from the UK to the EU and between the UK and other countries across the EU. The postings changes do not apply to any of these journeys or unladen movements of goods vehicles.

The new rules do apply to driving of UK-operated cabotage (transport of goods or passengers within the same country by a transport operator based in another country) in the EU and international transports where goods are loaded and then unloaded in the European Union. These operations are limited to a combined maximum of 2 by the TCA before UK goods vehicles depart back to the UK, with cabotage being also subject to other restrictions.

Scope of call for evidence

This call for evidence seeks views and evidence from all those with an interest and experience in the goods vehicle sector. Contributions are welcome from all, regardless of whether the person, business or organisation responding is directly affected by these new measures.

It also sets out our current assumptions around the potential impact of these changes, with the intention for those assumptions to be challenged and for data to be gathered in support or otherwise. This information will assist us to produce a more robust impact assessment to accompany a focused formal consultation which will follow later in the year once we have definitive legislative proposals.

Additionally, the call for evidence sets out our current intentions on how to implement the new requirements, and seeks to collate data on how these implementation measures will impact affected:

• people
• businesses

The scope of this document and the evidence being requested has been limited to areas of operator licensing and worker postings that are directly affected by the new requirements. It considers those areas where we and the Department for Infrastructure (DfI) in Northern Ireland have discretion within the constraints of the regulations.

We have also included a short section for information outlining the changes that will apply from 2026 in relation to tachographs being installed in vehicles weighing more than 2.5 tonnes that are used internationally for hire and reward.

There are no questions about tachographs in the survey associated with this call for evidence. The fitting is a requirement of the TCA and more information is liable to be available nearer the time.

How to respond

This call for evidence closed on 24 August 2021.

Next steps

Once the request for evidence has closed, we will analyse all the responses. The information gathered will help us draw up a detailed impact assessment of the changes caused by the Mobility Package.

Working with DfI in Northern Ireland, we will also use the information gathered to make final recommendations for how the Mobility Package will be implemented in the UK. Legislation will be drafted and a targeted consultation held to allow representative organisations time to comment on the specific legal implementation.

Freedom of information

Information provided in response to this consultation, including personal information, may be subject to publication or disclosure in accordance with the Freedom of Information Act 2000 (FOIA) or the Environmental Information Regulations 2004.

If you want information that you provide to be treated as confidential, be aware that, under the FOIA, there is a statutory code of practice with which public authorities must comply and which deals, among other things, with obligations of confidence.

In view of this, it would be helpful if you could explain to us why you regard the information you have provided as confidential. If we receive a request for disclosure of the information, we will take full account of your explanation, but we cannot give an assurance that confidentiality can be maintained in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded as binding on the Department for Transport (DfT).

DfT will process your personal data in accordance with the Data Protection Act, this will mean that your personal data will not be disclosed to third parties.

Crown copyright

This consultation is covered by the rules of Crown copyright DfT and the UK government adhere to.

Section 1: changes to the UK operator licensing regime

Introduction

The current UK operator licensing regime covers goods vehicles, for example, lorries weighing more than 3.5 tonnes and larger public service vehicles (PSVs), such as buses.

Operator licensing has been in place since the 1930s. However, the Transport Act 1968, was a significant legislative foundation of the regime for goods vehicle operator licensing, which has subsequently been built upon by further UK and EU legislation including the Goods Vehicles (Licensing of Operators) Act 1995.

The overall aim of the goods operator licensing regime is to support the transport of goods occurring in a safe and fair way. To fulfil this, there are mandatory criteria that anyone wishing to obtain an operator’s licence must adhere to, covering areas including financial standing, professional competence and good repute. This is along with requirements for licence holders to have an effective and stable establishment, including the need for an operating centre.

As part of the UK-EU negotiations and subsequent Trade and Cooperation Agreement (TCA) (PDF, 8.4MB), the UK has agreed to extend operator licensing requirements to include goods vehicles weighing more than 2.5 tonnes up to 3.5 tonnes in gross vehicle weight (medium and large vans) that travel internationally for hire and reward purposes. The changes, and this call for evidence, seek information for the whole of the UK. However, it is important to note that there are differences in the applicable legislation and operator licensing regimes within Great Britain and Northern Ireland.

Great Britain

In Great Britain, operator licensing is primarily regulated via the Goods Vehicles (Licensing of Operators) Act 1995 and associated regulations. Operator licensing is a reserved matter in Scotland and Wales.

Under the continuous licensing system, once granted, an operator licence will continue to remain in force. However, if an operator operates outside the terms of their licence, the licence may be withdrawn, or if they do not pay the necessary continuation fee when required to do so, the licence will lapse.

In Great Britain, Traffic Commissioners are responsible for the operator licensing system. Traffic Commissioners are appointees of the Secretary of State for Transport; there being 8 full-time Traffic Commissioners supported by 11 Deputy Traffic Commissioners. They work at ‘arm’s length’ from DfT and, in undertaking their tribunal function, they must operate independently in their consideration of cases.

The Traffic Commissioners are responsible for the licensing of the operators of:

• PSVs (buses and coaches)
• LGVs (currently over 3.5 tonnes gross plated weight)

Traffic Commissioners take regulatory action against holders or applicants for licences where there are concerns that they are failing to comply with the requirements to hold a licence. Regulatory action can include the:

• refusal of applications
• revocation of existing licences
• disqualification of certain people involved in a business or the company itself

Where necessary a Traffic Commissioner may hold a public inquiry to determine certain cases.

Traffic Commissioners additionally have responsibility for:

• registering local bus services, outside of London
• considering the conduct of drivers who hold or apply for licences to drive large goods and passenger carrying vehicles

In Great Britain, the Driver and Vehicle Standards Agency (DVSA) enforces the rules to make sure lorries and buses are safe to drive, and that operator licensing requirements are adhered to. To achieve this, DVSA carries out operator visits and roadside checks on drivers and vehicles.

Northern Ireland

Operator licensing is devolved in Northern Ireland, and operators are regulated under the Goods Vehicle (Licensing of Operators) Act (Northern Ireland) 2010. There is no Traffic Commissioner in Northern Ireland, but the competent authority is the DfI. The statutory functions of a Traffic Commissioner are undertaken by the Transport Regulation Unit (TRU), a part of the DfI.

Enforcement of rules in Northern Ireland is carried out by the Driver Vehicle Agency.

EU legislation and the Mobility Package

Within the EU, the main regulations that are applicable are Regulation (EC) No.1071/2009 (PDF, 1.08MB) and Regulation (EC) No.1072/2009. When the UK was a member of the EU, several EU regulations were brought into UK law, and have contributed to the development of the operator licensing regime.

The EU Mobility Package is a collection of 3 initiatives concerning the governance of commercial road transport in the EU and was created with the aim of improving drivers’ working conditions and safety, and ensuring the market’s fairness and efficiency.

Regulation (EU) No. 2020/1055, which forms part of this Mobility Package, introduces requirements in relation to operator licensing for LGVs by amending the existing EU Regulations No.1071/2009 and No.1072/2009.

As the UK is no longer a member of the EU, there is no requirement to implement these changes domestically. The road transport section of the TCA does not oblige the UK to apply these changes or others to domestic road transport operations.

This is an important change in the wake of Brexit and a component of the UK regaining more national sovereignty. However, relevant rules have been included in the TCA (PDF, 8.4MB) and must be applied if affected goods vehicles are to continue to be used for trade into the EU.

The significant changes to EU legislation as part of the Mobility Package, including the critical change to include some LGVs in operator licensing rules, are only required in the EU itself for vehicles used internationally. The EU legislation also makes slight changes to some of the operator licensing rules for HGVs.

The UK could follow suit for domestic operations. However, for technical reasons, (including those related to legislative powers), we have decided not to pursue this, at least, in the short term. Any expansion in the scope of these rule changes is being confined to licensing for international operations, at least initially. Any changes to the domestic operations would need further consideration and discussion with industry stakeholders and there are currently no plans to commence this work.

These changes will come into effect for UK operators of the affected LGVs on 21 May 2022. Some changes for heavy goods vehicle operators will take effect from February 2022.

This request for evidence focuses on implementing the new Mobility Package requirements, relating to access to the road haulage market and access to the profession for freight transport operators. Alongside this, we are also seeking evidence in relation to implementing the new Mobility Package requirements relating to the postings directive.

Who is affected by these changes?

Operators of vehicles used to transport goods with a weight over 2.5 tonnes and up to 3.5 tonnes (including combined weight with a trailer) that travel abroad on commercial journeys for hire and reward in an EU member state will start to come in-scope of operator licensing requirements.

This change will mostly affect vans, but pickups and other vehicles may come into scope if they are over the weight threshold and are used for hire and reward activities in the EU.

The weight of a combination of vehicles (such as a van and trailer) needs to be considered if a vehicle weighing less than 2.5 tonnes – for example, a car derived van (CDV) – tows a trailer where the combined weight takes it over 2.5 tonnes, and that combination is being used for in-scope activities.

If a journey starts and ends in the UK and transits through the Republic of Ireland, it counts as an international journey.

Who is outside the scope of these changes?

There are no new operator licensing requirements on businesses that operate LGVs weighing between 2.5 tonnes and 3.5 tonnes exclusively within the UK. These changes also do not affect those who drive an LGV internationally on a non-commercial basis or in connection with a business for which road transport (on own account operations) is not the main operation.

Determining whether an operation was for own account operations is ultimately for a court to decide. Previous UK case law can assist the process for determining this. Operators should consider:

• is the transport of the goods part of the business?
• does the operator hold, and rely on when carrying those goods, a type of insurance policy that covers carriage of goods for reward?
• does the carrying result in payment, direct or indirect, which benefits the owner or user of the vehicle?

Answering in the affirmative to any of those questions would indicate that the operation of carrying goods was ‘for or in connection with any trade or business’ or for ‘hire and reward’.

No passenger vehicles (such as buses or coaches) are being brought into this revised scope of operator licensing.

Policy considerations

The EU Mobility Package: LGVs

What are the requirements for operators who are been brought into scope of Operator Licensing?

A significant part of Regulation (EC) No.1071/2009 (PDF, 1.08MB) is that a transport undertaking meets the following requirements:

• stable establishment in the UK
• those in charge are of good repute
• financial standing ( access to a specific amount of funds depending on the size and composition of the fleet)
• professional competence – a qualified or exempt transport manager

In respect of the planned extension of operator licensing to some smaller goods vehicles, the requirements of good repute, stable establishment and professional competence are similar to the requirements for larger vehicles.

The main differences are a lower level of financial standing related to the operation of LGVs, and transitional arrangements exempting people with substantial relevant experience in the operation of LGVs from requiring a Transport Manager Certificate of Professional Competence (TM CPC) qualification for a period of time.

It is also important to note that only the minimum EU-derived requirements for operator licensing must be implemented. Other UK requirements for heavy goods vehicle operations do not have to be applied. This includes the right for people living in the locality of operating centres to make representations on the grounds of how the presence of an operating centre may affect the physical environment in the surrounding area such as the road infrastructure.

Financial standing

Lower levels of financial standing for LGVs are required compared to HGVs. For mixed fleets, the first vehicle is always an HGV and therefore the higher rate is applicable.

Financial standing levels for HGV, LGV and mixed fleet operators

	HGV only fleet	Mixed HGV/LGV fleet	LGV only fleet
Requirement for 1st vehicle	£8,000	£8,000	£1,600
Requirement for 2nd and all subsequent HGVs	£4,450	£4,450	n/a
Requirement for 2nd and all subsequent LGVs	n/a	£800	£800

Note: the amounts stated in this table reflect 2021 rates and the position agreed for vehicles on standard international licences in the TCA for future years.

Maintenance regimes

Operators must also keep their vehicles safe and in good condition at all times. Operators will need to keep records of all safety inspections and maintenance undertaken, including by a third-party maintenance contractor for a minimum of 15 months.

Tachographs

From 1 July 2026, the EU Mobility Package will require the fitting and use of tachographs, the recording of driving and working time and compliance with the EU drivers’ hours rules. This is for LGVs with a maximum permissible mass, including any trailer, or semi-trailer exceeding 2.5 tonnes but not exceeding 3.5 tonnes that are used for the transport of goods on international journeys.

Exemptions will apply where the goods are not being transported for hire or reward (for example, parcels transported by a courier company), but on the basis of the own account of the company or the driver (when the vehicle is only carrying goods in connection with your own business) or where driving does not constitute the main activity of the person driving the vehicle. These are the same criteria used for bringing LGVs into scope of the new operator licensing requirements.

This call for evidence does not cover this future introduction of tachographs.

Standard international licence

All operators being brought into scope of operating licensing by these new requirements will be required to apply for a standard international licence.

For those operators who only operate vehicles at or below 3.5 tonnes, this licence will be weight-restricted by placing a condition on the licence, at grant, under section 5(2) of the Goods Vehicles (Licensing of Operators) Act 1995.

This condition will allow the operator to benefit from the lower financial standing requirements per vehicle allowed by the EU regulations, but will mean that they will not be able to operate larger vehicles over 3.5 tonnes unless they submit a variation request and pay the appropriate fee.

A standard international licence, valid for UK and international journeys, allows an operator to carry:

• their own goods
• goods for other people for hire or reward (such as parcel delivery)

The TCA includes a clear exemption from requirements for a standard international licence (and hence UK Licence for the Community) for operators transporting their own goods. The UK (both GB and NI authorities) requires most of these ‘own account’ operations using HGVs to have a ‘restricted licence’. Restricted licences are a UK, not EU, requirement. There are no plans to extend UK restricted licences to cover LGVs – be they used in the UK or for international journeys.

Operators who are issued with standard international licences will receive a UK Licence for the Community. These licences are required for all hire or reward operations in, or through EU countries and are documents that are required to be carried on the vehicle at all times.

Assessing the number of vehicles and operators in-scope

The exact number of vehicles and goods vehicle operators affected by these new requirements is not entirely clear. DfT’s current central estimate is that there are about 21,000 vehicles and 4,200 operators within the UK, that may come into the scope of the new regulations. It is seeking information to develop the estimate further including through this call for evidence.

These figures have been derived in the following way:

Great Britain

According to a survey of LGVs published by DfT in September 2020, there were about 4.1 million LGVs in Great Britain as of 2019. Separately, DVLA has indicated to DfI that there 127,154 LGVs in Northern Ireland, totalling about 4.2 million LGVs in the UK.

The Society of Motor Manufacturers and Traders (SMMT) has kindly provided the DfT with figures for how many vehicles are likely to fall into scope based on weight. According to the SMMT, as of end of 2020, there were 2,699,835 vans on the road in the UK in the 2,601kg to 3,500kg weight range, which should approximate to 2.6 million vehicles in Great Britain, removing the Northern Ireland vehicles for now.

To account for vehicles between 2.5 tonnes and 2.6 tonnes, we will add an additional 100,000 vehicles to this figure.

Additionally, vans weighing less than 2.5 tonnes that are used with a trailer, that could take place them over the weight that brings them within the scope of these changes. We have currently estimated that there are 100,000 vehicles that could be used in this way.

The total number of vans that come in-scope via weight requirements is therefore estimated at 2.8 million in Great Britain.

The DfT van survey estimated that 16% of licensed vans were used for the delivery or collection of goods, that is, hire and reward, which places them in-scope of the new requirements. This equates to 448,000 vans.

By way of contrast, 41% of vehicles in the survey were used for the ‘carrying equipment, tools or materials’. These vehicles are outside the scope of these changes. Examples of vehicles that may be used in this way, include those used by tradespeople such as decorators, plumbers or builders who use the van to take themselves and their tools to and from the place where they are working. Vans in this out of scope category have therefore not been included in this calculation.

The DfT van survey also indicated that 1% of vans (both private and business-owned) travelled internationally on a typical day, which goes down to 0.48%, or 19,666 vans, when only looking at business-owned. 

However, it indicated that the group most likely to go longer distance were vans used for ‘delivery or collection of goods’, with 61% of these travelling regionally or further on a typical day. So, it would be expected that in-scope vehicles would make up a higher percentage of the vehicles that travel internationally.

Therefore this 1% will be doubled as an estimate to 2%. Two percent of 448,000 equates to 8,960, rounded up to give a final estimate of 9,000 vans in-scope in Great Britain.

Northern Ireland

According to the SMMT, there are 70,920 goods vehicles between 2,601kg to 3,500kg weight registered in Northern Ireland.

Adding an estimate of an extra 10,000 vehicles to account for those goods vehicles between 2.5 tonnes and 2.6 tonnes in weight, and those smaller vehicles that might use a trailer, gives an estimate of 81,000 in-scope vans in Northern Ireland.

Applying the 16% estimate on hire and reward from the Great Britain van survey gives about 13,000 vans.

Unlike in Great Britain, where van survey data indicates that about 1% of the vehicles which fall into the weight scope travel internationally, based on the DfT van survey, the numbers of vehicles travelling to the Republic of Ireland from Northern Ireland will be very significantly greater due to the ease of border crossing and the interconnected economy between the 2 countries.

Therefore, we are using a provisional estimate that 90% of the vans may be within the scope of the changes, this gives an approximate figure of 11,700 in-scope vehicles in Northern Ireland.

In conclusion, we currently estimate that a total of 20,700 vehicles (9,000 in Great Britain and 11,700 in Northern Ireland) being brought into scope of the new requirements.

Operator licences

The current ratio of HGVs to operator holders is 5:3 to 1 in Great Britain and around 4:5 to 1 in Northern Ireland. Using the HGV ratio for LGV operators and applying an approximate ratio of 5 vehicles to 1 operator, we would estimate that 4,200 operators may come in-scope of the new requirements.

However, this may be an overestimate. Mixed fleet operators may already have standard international licences in the area of the country where their LGVs are operated due to having HGVs that already travel internationally.

Businesses in this position may only need to submit a variation application to the Office of the Traffic Commissioner (OTC) to specify the newly in-scope vehicles or to increase the authority of the licence.

We recognise that as a result of these changes, some operators who travel internationally on only an occasional basis, may choose to cease their international operations (or sub-contract that work to another operator) rather than applying for, and fulfilling the criteria to hold a standard international licence, such as employing a transport manager, and meeting the financial standing requirements.

Transport manager acquired rights

As with the current regime for HGV operators, operators of LGVs with operations that fall within the scope of the changes will need to appoint a qualified transport manager. The required qualification is the Transport Manager Certificate of Professional Competence (CPC) and is the same irrespective of the size or type of fleet operated.

There is no exemption from, or reduction to the qualification requirements if someone is operating a small fleet of vehicles, even if there is only one vehicle that makes the type of journey covered within the scope of changes, or if the fleet is comprised solely of LGVs.

Transport managers with this qualification who are hired to fulfil this function, but who are not directly employed by the operator, are restricted to the management of 50 vehicles, spread between a maximum of 4 different operators.

Article 9 of Regulation (EC) No 1071/2009 (PDF, 1.08MB) has been amended to allow for EU member states (and the UK via the TCA) to allow an exemption from the CPC requirements for individuals who declare they have continuously managed LGV vehicles for 10 years prior to 20 August 2020. However, this exemption only applies if managing vehicle(s) that do not exceed 3.5 tonnes.

The UK, therefore, has the freedom to decide:

• whether to allow operators this additional flexibility
• for how long flexibility should last
• whether there should be transitionary arrangements, to encourage people to achieve the Transport Manager CPC qualification at the earliest opportunity

Previous approach to acquired rights

The recognition of the value of existing experience was previously used on the introduction of EU Regulation No 1071/2009 (PDF, 1.08MB), which had similar exemptions. Our policy approach at that time was to adopt a ‘light touch’ approach in relation to this change to allow businesses time to adapt to the new requirements, by issuing ‘acquired rights’ certificates to people who met certain criteria.

People who had previously held ‘grandfather rights’ certificates were deemed to qualify for acquired rights on self-declaration. The 2011 Regulations allowed a person to apply for acquired rights only until 4 December 2013.

Exemptions issued under acquired rights remain valid unless a Traffic Commissioner makes a finding of loss of good repute or professional competence. The Secretary of State for Transport issued acquired rights with an appeal avenue to the traffic commissioner.

Application of acquired rights to LGVs

Subject to views and evidence provided as part of this call for evidence, we intend to take a similar approach in relation to acquired rights to once again offer a period of adaptation to businesses. We plan to adopt the approach offered by Regulation (EC) No 1055/2020 to allow individuals who declare that they have continuously managed LGV vehicles for 10 years prior to 20 August 2020 to be issued with a limited validity acquired rights certificate, allowing them to manage LGVs for a transitional period.

This approach is designed to give businesses the opportunity to have time to ensure that experienced and long-standing fleet managers who are currently undertaking this role can achieve the necessary Transport Manager Certificate of Professional Competence qualification.

A licence granted with a designated transport manager who has only qualified through these ‘transitional acquired rights’ will be restricted from operating larger vehicles, until such time that they complete the Transport Manager CPC qualification.

We understand there are some risks with this approach. A transport manager must possess high-quality professional knowledge in order to effectively and continuously manage transport activities. The holders of CPCs are encouraged to undertake continuing professional development, but the holders of acquired rights may not be as up-to-date.

Overall, we believe the risk may be mitigated, as the people who qualify for this exemption will already be working in the industry and will, therefore, have experience in managing these fleets. The exemptions will not apply to people managing vehicles in excess of 3.5 tonnes.

We additionally take the view that the professionalism of the industry has increased since the introduction of the CPC qualification, as it provides a good grounding in the successful management of vehicles operated by a transport business.

While there will be people already successfully managing van fleets, without holding the Transport Manager CPC qualification, the proposal is that transport managers of LGV fleets qualifying via acquired rights should only do so for a temporary period. This should be sufficient to enable them to obtain the Transport Manager CPC qualification.

To ensure that the standards of professionalism within the industry are maintained, we consider that long term, all designated transport managers should hold this qualification irrespective of the type of fleet managed.

If a temporary period for the validity of acquired rights is to be implemented, its duration needs to be specified.

Proposed validity of acquired rights

We are, therefore, proposing that holding the qualification through transitional acquired rights will be time-limited to 3 years and these rights, and the associated qualification will expire after 20 May 2025.

After that time, all transport managers in the UK will be required to have obtained the Transport Manager CPC certificate.

We consider 3 years a reasonable and sufficient length of time for people working professionally as transport managers to obtain the qualification.

We understand from examination providers that, on average, people take around 18 months to pass the Transport Manager CPC qualification, and usually require more than one sitting to pass the examinations.

We are seeking evidence for whether this would be the most appropriate course of action.

We currently consider that the period for making applications for acquired rights should also be limited to a period of 2 years from the introduction of the revised regulation, that is, up to 20 May 2024. After this time no acquired rights could be issued.

Such an approach may assist in avoiding a cliff-edge situation where transport managers register at a point where they have insufficient time to complete the qualification before a May 2025 cut-off.

If this measure is agreed, the legislation should set out that these acquired rights certificates can only be relied upon to exempt from any operation until May 2025 (that is, 3 years from introduction).

Any person wishing to remain within the industry after this time would be required to have gained the CPC qualification. This reduces the long-term risk to operator standards presented by acquired rights while allowing an adequate period to undergo training. The 3-year period also ties into the CPD requirement as set out in Article 8 of EC 1071/2009 as amended and retained in UK legislation.

The application process, which is intended to be available via a digital-only service, for acquired rights can take the form of a self-declaration with the applicant on notice that they must produce required evidence at any time during the validity of the certificate or the application process.

Obtaining a Transport Manager CPC qualification

Where a van fleet does not have an already qualified transport manager, or someone who is able to qualify for the transitional acquired rights that are planned to be offered, they will need to employ or contract a person who either, already has the Transport Manager CPC, or can take a course and pass the 2-part examination by May 2022.

Anyone issued with the transitional acquired rights exemption for LGVs will need to also take and pass the Transport Manager CPC examination to continue in this role after May 2025.

Training is provided by a large number of private sector companies and the examinations are conducted by awarding bodies who are usually accredited by the Office of Qualifications and Examinations Regulation (OFQUAL).

Based on previous experience, we understand it typically takes a candidate around 18-months to study for and pass the Transport Manager CPC examination.

The current major providers offer examination sittings 5 times a year. However, we are looking to widen the provision to awarding bodies who may be able to offer on-demand, or more frequent, examinations.

Operational centres

Effective and stable establishment

It is a minimum requirement of the applicable EU regulations and implementing GB/NI regulations that any goods operator has to have an effective and stable establishment in the EU member state or in the UK in which it is licensed. This requirement will also apply to LGVs brought into scope of the new requirements in May 2022.

This is the address where a good operator must keep its core business documents and, in particular, accounting documents, personnel management documents, documents containing data relating to driving time and rest periods and any other document to which the traffic commissioner or enforcing authorities may require access to verify compliance with the requirements of the licence.

However, current UK law goes further and currently HGV operators applying for an operator’s licence must specifically demonstrate to the Traffic Commissioners that the operating centre is suitable from an environmental perspective to operate HGVs.

In assessing applications, the OTC will consider the:

1. Environmental impact of the operating centre.
2. The general suitability of the centre.

As these are requirements that stem from UK law, and is not specified in the relevant EU regulations, the UK can therefore decide not to impose this same requirement where operators only have LGVs.

Environmental considerations

As set out in Statutory Document 4 (PDF, 473KB): (Traffic commissioners: operating centres, stable establishments and addresses for service), as part of reviewing any operator licence application or variation request will consider the following:

• the nature and use of any other land in the vicinity and any effect which the use as an operating centre has or would be likely to have on the environment of that vicinity
• where the proposed site is, or has previously been, used as an operating centre, the extent to which the grant of the application would result in any material change, which would adversely affect the environment of the vicinity
• where the land has not previously been used as an operating centre, any information known about any planning permission or application for planning permission relating to the land or any other land in the vicinity
• the number, type and size of motor vehicles or trailers
• the arrangements for the parking of motor vehicles or trailers
• the nature and the times of the use of the proposed site
• the nature and the times of the use of any equipment installed at the proposed site for the purpose of being an operating centre
• the means and frequency of vehicular ingress to, and egress from, the proposed site

Advertising requirements

Section 11(2) of the Goods Vehicles Act 1995 requires an applicant for an operator’s licence to publish a notice of the application in a local newspaper within the period of 21 days before or 21 days after the application is made.

As set out in Statutory Document 4 (PDF, 473KB): (Traffic commissioners: operating centres, stable establishments and addresses for service), the purpose of advertising requirement is to ensure that members of the public who might be adversely affected by the operation of vehicles under a licence shall have an opportunity to make representations to the Traffic Commissioner against a grant or variation application.

Planning

Planning controls and the approval of any planning application associated with an operator are the responsibility of the local authority.

In relation to HGVs, Traffic Commissioners do not get involved in planning matters, which are within the remit of local authorities.

The Traffic Commissioners must simply be satisfied that the site is ‘available’ for use as an operating centre.

Environmental considerations for LGVs

Our view, at present, is that UK-specific requirements, set out above, should not be extended to operators with fleets comprising solely LGVs, as this represents an added significant burden for operators with vehicles that do not cause the level of disruption that can be caused by HGVs, given the smaller size of LGVs.

Established LGV operators coming in-scope of the new requirements would be given an assumption that adequate parking space was in place already.

Applications by LGV operators would however still be subject to statutory objections from bodies such as the Police, local authorities, trade associations and unions as set out in section 12 of The Goods Vehicles (Licensing of Operators) Act 1995. These bodies are alerted weekly via the applications and decisions newsletter.

We are keen to collect evidence related to any potential issues around our plans to not require parking provision in an operating base for LGVs, specifically whether LGVs that are part of fleets are currently adequately and appropriately parked and are not creating overspill with adverse impacts on local neighbourhoods. Questions on this form part of the evidence we are seeking to gather.

We are also seeking views on whether LGV-only operators should be subject to the same requirements as HGV or mixed fleet operators in advertising locally their intentions when applying for a licence or applying for a major variation to a licence.

Mixed fleets

Financial standing requirements for operators of mixed fleets (of HGVs and in scope LGVs) will be calculated on the basis of the first vehicle being an HGV, and all subsequent vehicles will be assessed on the basis of whether they are above or below 3.5 tonnes in weight.

The requirement for sufficient parking to accommodate all vehicles on site is a part of domestic UK (GB and NI) regulation. It is not a direct EU requirement. The proposal for mixed fleets is that it will be applied only to capacity to house HGVs.

Businesses that operate HGVs domestically (within the UK) will already hold an operator’s licence. If they also operate LGVs internationally, they will need to change this to a standard international licence if this is not already held. If the business is already in possession of a standard international licence, a variation application will need to be made to the OTC.

The target for average processing times is 35 days for both new and variation applications without a public inquiry.

Operator licence changes affecting HGVs

While the most significant changes to operator licensing surround the new requirements on international LGVs, the TCA also makes some changes to the existing regime that HGV operators in the UK are familiar with.

The main changes that might affect HGV operators that engage in international operations, in relation to effective and stable establishment, good repute, and competence are summarised as follows:

Effective and stable establishment

Corporate entities that hold operator licences must ensure:

• they are registered on the register of commercial companies (in the UK’s case, this will be Companies House)
• be subject to tax on revenues and have a valid UK VAT registration number
• must have enough drivers and vehicles at their disposal proportionate to the volume of transport operations undertake by the operator

Good repute

Specific reference is now made to the conduct of the executive directors of any operator.

Infringement of tax law is now to be considered along with criminal offences or serious infringements related to workers posting, contract law and cabotage.

Competence

Where a transport manager loses good repute, there is now a minimum time of a year before rehabilitation can occur, and the transport manager is now mandated to either complete formal training for 3 months or pass an appropriate exam.

These changes represent slight updates in existing requirements and will mean those UK operators with international licences will be subject to slightly different requirements to their counterparts who only hold national licences.

Physical operator discs

Every vehicle operated under an Operator’s Licence has an identity disc, which must be displayed in the windscreen of the vehicle. This allows enforcement authorities to identify vehicles that have been brought into scope of the relevant operators’ licence.

The digital service provided through the Vehicle Operator Licensing (VOL) business system enables operators to transact more easily and keep their licence details up to date, particularly for the specification of vehicles.

Access to the VOL now enables enforcement agencies to identify specified vehicles at the roadside.

Current powers to stop LGVs

Currently, DVSA resources are focused on HGV compliance, safety and roadworthiness. Although some LGV checks are done, although at present, DVSA only has legal powers to stop LGVs at the roadside for the purposes of drivers’ hours enforcement.

This limitation on the stopping powers, means that if DVSA stops are to contribute to checking for compliance for those LGVs that fall under the scope of operator licensing, DVSA powers may need to be widened to enable checks to be done.

A significant aim of this change would be to ensure the standards of maintenance, loading and other rules that are associated with operator licensing are upheld.

We are, therefore, considering the necessity for broadening DVSA powers to stop LGVs, and it is likely that these broader powers may need to apply to all LGVs. This is because at the point a vehicle is stopped, it is likely to be difficult to distinguish between those vehicles that are within and those that are outside the scope of the operator licensing regime.

Extending these powers will require changes to be made to primary legislation.

Next steps on changes to operator licensing

Once the request for evidence has closed, we will analyse all the responses. The information gathered through this process will help us draw up a detailed impact assessment of the changes caused by the implementation of the Mobility Package following the UK-EU Trade and Cooperation Agreement.

DfT and DfI in Northern Ireland will work together and use the information gathered through this call for evidence to make final recommendations for how the Mobility Package will be implemented in both Great Britain and Northern Ireland.

Legislation will be drafted and there will be a further short, formal consultation published to allow stakeholders and interested members of the public time to comment on these final proposals and recommendations.

Section 2: postings

The EU has introduced a new directive (EU) 2020/1057 to implement new drivers’ posting rules. This is due to apply from 2 February 2022 and will affect posted journeys.

To maintain our access for goods vehicles travelling into the EU, similar requirements have been included in the TCA. As a result, UK operators of vehicles on some types of journey will need to provide information via an EU system, which can then be accessed by national licensing and enforcement authorities in the EU member states.

We are working closely with the Northern Ireland DfI on the implementation of these requirements, which will affect UK transport operators undertaking some types of journey.

From 2 February 2022, if you are planning to operate a goods vehicle on a journey within the EU, you will need to post information about the driver and the planned journey in advance, using an EU-wide IT system, which the UK will also be using to reduce the administrative burden and duplication for business. In addition to the information on the driver and the journey being undertaken, countries where goods are loaded or unloaded may also request further information about the transport operation being made.

Postings declarations

In this context, a journey is a movement of goods using a goods vehicle (of any size).

These new rules mean that any journeys using a goods vehicle to move goods commercially (including goods used for the own business of the goods vehicle operator, even if that business is not primarily about moving goods) between 2 points in the EU will require a postings declaration. A driver undergoing these journeys would be considered a ‘posted’ driver.

The requirement does not apply to:

• movements of empty vehicles
• journeys made between the UK and a non-EU country across the EU without loading or unloading in the EU
• journeys just between the UK and EU
• journeys just from the UK to EU where goods are unloaded at more than one place
• journeys from the EU to UK where goods are loaded at more than one place. But if any goods are both loaded and unloaded in the EU it does apply

This means that during posted journeys, the following factors will be held to the regulations of those EU member states where goods are loaded or unloaded:

• maximum work periods and minimum rest periods
• minimum paid annual leave
• remuneration, including overtime rates; this point does not apply to supplementary occupational retirement pension schemes
• health, safety and hygiene at work
• protective measures with regard to the terms and conditions of employment of pregnant women or women who have recently given birth, of children and of young people
• equality of treatment between men and women and other provisions on non-discrimination

The UK and EU member states must provide a portal from which the relevant laws applicable for visiting drivers are accessed. The UK government will be publishing our terms and conditions for foreign drivers being posted into the UK and this is also a requirement for all EU member states.

For EU member states to check that these conditions are being met, businesses (operators) undertaking posted journeys in the EU will be required to share information with the ‘competent authorities’ of the EU states.

Competent authorities tend to be those responsible for issuing or checking operator licences and other commercial road transport-related documentation. The UK government will be publishing our terms and conditions for foreign drivers being posted into the UK and this is also a requirement for all EU member states.

Competent authorities, for the purposes of postings rules, are proposed to be the Traffic Commissioners for Great Britain, and the DfI for Northern Ireland.

This is needed to enable requests from abroad about operators who have not provided information required or made postings declarations to be pursued. Failures to comply with the requirements are relevant to the repute of both operators and their transport managers, which are matters for Traffic Commissioners and their counterparts in Northern Ireland.

The UK is also likely to designate enforcement agencies, such as the DVSA, as competent authorities in respect of issuing requests for documentation related to the posting of drivers of EU operators when they are operating within the UK on cabotage journeys.

It is, however, unlikely that the UK will prioritise a high level of enforcement of the postings requirements immediately. This is due to other priorities for enforcement, including related to rules critical for public safety, such as drivers’ hours, vehicle defects and overloading.

Who will this impact?

Operators will have to provide the information onto an online service and drivers will need to have documentation on hand for in scope journeys within the EU. This will affect anyone running goods vehicles including small LGVs for journeys within the EU.

IT system

For UK operators to maintain access into the EU, the following information will need to be entered into the Internal Market Information System (IMI) located on the EU website (this system is being developed by the European Commission for these purposes and the site is not currently live):

• the identity of the operator, at least in the form of the number of the valid licence where this number is available
• the contact details of a transport manager or other contact person in the UK to liaise with the competent authorities of the EU member state (or states) in which the services are provided and to send out and receive documents or notices
• the identity, the address of the residence and the number of the driving licence of the driver
• the start date of the driver’s contract of employment, and the law applicable to it
• the envisaged start and end date of the posting
• the number plates of the motor vehicles.

Drivers need to carry a physical or digital copy of this information.

Drivers must also carry evidence of the transport operations taking place in the host member state, such as an electronic consignment note (e-CMR) or a paper CMR, as well as tachograph records.

European competent authorities can request from UK operators, copies of the documentation required to be carried by drivers (the postings notice, CMR and tachograph records), as well as documentation relating to the remuneration of the driver during the posting, the employment contract or time-sheets relating to the driver’s work and proof of payments.

This data needs to be provided via the IMI interface by 8 weeks from when it is requested.

Northern Ireland

Journeys within the Republic of Ireland by Northern Ireland operators are covered by the postings directive. We are working closely with the DfI for Northern Ireland in preparing this request for evidence and will continue to do so throughout the period leading to the commencement of the new rules on 2 February 2022.

Next steps on postings

We will be considering the information provided in the response to this call for evidence to tailor the regulations and IT service to be as effective as possible while ensuring we implement the requirements in the TCA.

This information will be essential to help apply the European-wide system to the UK in a way that is best suited to operators.

Annex A: summary of questions

Your name and email address (used for contact details only)

Are you responding as an individual or as an organisation?

Whether your organisation is a haulier or light vehicle operator?

Whether your organisation holds an operator’s licence?

How many HGVs does your organisation operate?

How many LGVs does your organisation operate?

Does your organisation operate goods vehicles internationally?

How much time per month does it take for staff in your organisation to comply with the maintenance regime as set out in the current operator licence requirements?

On average how much time in minutes does your daily walkaround safety checks of each vehicle take?

How many goods vehicles exceeding 2.5 tons and up to 3.5 tons, does your organisation operate internationally (including Republic of Ireland) for hire and reward purposes?

How much revenue per year, before COVID-19 impacts, did your organisation gain from international LGV ‘hire and reward’ journeys?

What percentage of your yearly organisational revenue, before COVID-19 impacts, was gained from international LGV ‘hire and reward’ journeys?

To what extent do you think your organisation is likely cease or reduce international operations due to the changes in operator licensing?

What are your views on our assessment of the number of LGVs brought into scope by the new requirements on Interational hire and reward operations?

What are your views on our assessment of the number of operators brought into scope by these new measures?

Does your organisation have qualified transport managers?

Does your employer have a person or persons undertaking the functions of a transport manager, but who are not formally qualified?

How many of the ‘not formally qualified’ transport managers, have been in the occupation for 10 years or more?

How many directly employed qualified transport managers?

How many third-party (for example, not directly working for the organisation) qualified transport managers?

What changes do you anticipate your organisation having to make in relation to transport manager employment?

How many currently non-qualified staff within your organisation would be sent to study and sit the formal Transport Manager CPC exam?

Should, in your opinion, unqualified transport managers, with 10 or more years’ experience of managing LGVs, be able to get an acquired rights certificate allowing them to manage a fleet of light goods vehicles

If acquired rights were issued, how long, in your opinion, do you think they should be issued for?

Do you think LGV-only operators should be subject to the same requirements as HGV operators in ensuring sufficient parking provision on-site when applying for a licence or a major variation?

Do you think LGV-only operators should be subject to the same requirements as HGV operators in advertising locally their intentions when applying for a licence or a major variation?

Roughly what percentage of the total journeys undertaken by your firm will be affected by the new requirements applying to journeys between EU countries?

Roughly what percentage of the total revenue of your firm relates to journeys that will be affected by the new requirements?

Which EU countries do you currently post workers to?

Do you adjust drivers’ pay when they are undertaking journeys within the EU?

What is the pay arrangement?

Do you currently keep the following records:

• identity of the operator in the form of the valid operator licence number?
• contact details of the transport manager or equivalent contact person in the UK to liaise with the competent authorities of the EU member state?
• identity of the driver?
• address of the driver’s residence?
• driving licence number of the driver?
• start date of the driver’s contract of employment?
• envisaged start and end date of any journey within the EU?
• number plates of the motor vehicles?

Estimate the total time per month, to the nearest hour, that you think is required for a staff member to enter the above data into an online database?

Do you have a view on whether the UK should introduce enforcement on EU operators to make posting declarations for their drivers when transporting goods solely within the UK?

Is the revenue you receive for undertaking posted journey substantially different from revenue received for similar length and difficulty of journey in the UK?

Any other comments?