[2024] UKUT 148 (AAC)

Section 4(4)(a) of the 1981 Act requires a Traffic Commissioner to act under the general directions of, and have regard to any guidance given by, the Senior Traffic Commissioner. Section 4C(1) empowers the Senior Commissioner to give the Traffic Commissioners guidance or general directions on the exercise of their functions. By virtue of section 4C(3)(b), the directions that may be given include directions as “the information which a traffic commissioner must ask to be supplied in connection with the exercise of any particular function, and the steps which must be taken to verify the accuracy of any information so supplied”.

A Traffic Commissioner is entitled to proceed on the basis that an applicant is aware of the Senior Traffic Commissioner’s statutory guidance (MGM Haulage and Recycling Ltd 2012/030).

Section 12(4) of the 1981 Act provides as follows:

Section 13 of the 1981 Act, headed “Classification of licences”, is the basis for the ‘main occupation’ rule for restricted PSV operator’s licences:

Section 14(2) of the 1981 Act requires a Traffic Commissioner, on an application for a restricted licence, to consider whether the requirements of sections 14ZB and 14ZC are satisfied. If the requirements are satisfied, the Commissioner must grant the licence (section 14(3)).

Insofar as relevant in this case, section 14ZB of the 1981 Act provides as follows:

As we have said, it is not disputed that, in order to demonstrate financial standing, this Appellant was required to have at least £3,100 available for the purposes of the proposed PSV operation.

Insofar as relevant in this case, section 14ZC of the 1981 Act provides as follows:

The ‘requirements of the law relating to the driving and operation of those vehicles’ include section 13(1)(b)’s prohibition on a restricted licence holder, whose main occupation is the operation of public service vehicles adapted to carry more than eight passengers, using such vehicles. That is why an applicant for a restricted licence who fails to satisfy the main occupation rule is bound to fail.

The Senior Traffic Commissioner’s Statutory Document No. 2 – Finance includes both guidance and general directions given under section 4C of the 1981 Act. The directions include:

“36. Historically commissioners have required the submission of bank statements for a three-month period when operators and applicants are seeking to establish availability of finance, but this approach has only given a historic analysis of the operator’s financial position and has been of limited assistance to new applicants who may only be able to establish access to the required finances for a period of one month prior to the establishment of the business.”;

“52. Where on application…bank or building society accounts are relied upon, original statements must be supplied for the past 28 days, the last balance of which must not be more than two months from the date of receipt of the application. Applicants may therefore need to submit further statements where their application is delayed or incomplete. Where applications are made digitally, electronic copies of original documents and internet statements can be uploaded with the application, however the traffic commissioner and staff acting on their behalf reserve the right to request originals.”;

“54… where copies have been scanned and sent the traffic commissioners and staff acting on their behalf reserve the right to request the original documents to be sent.”

Paragraph 64 provides that “Annex 1 offers a quick reference guide to the starting point for different types of legal entity”;