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RHA hits out at financial standing 'bombshell'

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RHA hits out at financial standing 'bombshell'

Thursday, 07/1/2010 01:35
The Road Haulage Association (RHA) has hit out at what it calls "one of the biggest bombshells ever" to hit UK transport planning bosses.

According to the group, the recent 30 per cent increase in the financial standing requirement for the hire or reward sector could have a "catastrophic effect" on hauliers.

The decision means transport operators will now have to show cash reserves of more than £8,000 for their first vehicle, up from £6,200, as well as £4,500 for every additional vehicle.

Department for Transport officials said the change, which took effect from January 1st 2010, was down to the devaluation of the pound, stressing that the increase is mandatory.

However, with many hauliers already struggling to cope with the current economic climate, RHA chief executive Geoff Dunning said the hike could have a major impact on firms.

"Before Christmas, the RHA stressed that it had no desire to see operators running trucks that they could not afford to operate safely," he commented.

"However, the current financial standing rules go well beyond that."

The comments come after the RHA also criticised proposals to increase tolls on the Tamar Bridge in south-west England by 50 per cent, claiming the hike was "totally unacceptable".

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