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FTA demand currency change to sterling after Brexit

The Freight Transport Association (FTA), have said the financial standing rates, which provide licence holders the adequate funds to operate, should be set in sterling and not Euros after a Brexit deal has been reached.

The current rates are obeyed by European Law, with the price of €9,000 for the first vehicle and €5,000 for every vehicle afterwards. For those who are not members of the Eurozone, which includes the UK, the exchange rate begins on the first working day of October and continues into the new calendar commencing January 1. 

An announcement is due to be confirmed by the Office of the Traffic Commission in the upcoming weeks for 2018. An excellent rise in the pound from September has spared the freight and logistics industry a further hike in January 2018 as the exchange rate is nearly the same compared to twelve months ago.

The FTA believes the financial standing system should be completely reviewed with the UK setting their own rates after a Brexit has happened on March 29 2019.

FTA’s head of Licensing Policy, James Firth said: “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. 

“Between 2012 and 2016, the actual figure required has fluctuated by almost £2,000 for the first vehicle, simply based on the changes in the exchange rate for euros – this situation needs urgent attention to ensure that stability for business expenditure can be established moving forwards.”  

Firth added: “At this point, the rate for restricted operators, set by the UK Government, not Brussels, has remained much lower than for traditional hauliers, while those operating in Eurozone countries have enjoyed a steady rate (Euros €9,000 and Euros €5,000) even through the depths of the Eurozone debt crisis.

Firth concluded: "Shouldn't the Government be taking this opportunity to reassess what financial standing is for, how it is determined in the 21st century and base it on values fixed in Sterling? 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? The freight and logistics sector deserves a consistent operating environment in a post Brexit world.”

 

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