Lions Logistics Limited

When assessing a goods vehicle operator’s financial standing, a Traffic Commissioner must consider relevant evidence of funds, including bank-account resources and an available credit facility. If relevant evidence is mistakenly omitted, the decision may be set aside as plainly wrong where the omitted funds could meet the required threshold and the Commissioner gives no alternative reasoning supporting the same outcome. A late appeal ground is assessed by considering the seriousness of the delay, the reason for it and all the circumstances of the case.

Lions Logistics Limited held a goods vehicle operator’s licence for 20 trucks. After a public inquiry, the Traffic Commissioner for the West Midlands found that the company had not demonstrated appropriate financial standing and directed revocation of its licence on 19 February 2025. The Commissioner later acknowledged that he had omitted bank statements already on file from his calculation. The company appealed, arguing that the omitted evidence, together with other financial resources, could meet the required threshold. It also sought permission shortly before the Upper Tribunal hearing to add a ground challenging a prior Upper Tribunal authority on reducing fleet size. The central issues were whether the omission made the revocation decision erroneous and whether time should be extended for the additional ground.

1. The appeal was allowed on ground 3. The Traffic Commissioner had mistakenly left the company’s bank-account evidence and credit-card facility out of the financial-standing calculation. The Upper Tribunal found that omission made the revocation decision plainly wrong under the test in Bradley Fold Travel v Secretary of State for Transport [2010] EWCA Civ 695.

2. The bank statements were relevant evidence. The Tribunal noted that cash in bank accounts is among the most reliable evidence of available funds, as stated in Michael Hazell (No. 2) [2017] UKUT 0221 (AAC). It also accepted that the Office of the Traffic Commissioner was entitled to include the credit-card facility in its calculation. Adding the omitted £27,182 to the Commissioner’s £70,200 figure produced £97,382, above the required £93,500. The Tribunal saw no alternative conclusion in the revocation decision or the stay decision that could sustain the finding of insufficient financial standing. It applied the reasoning in Thandi Coaches (Red) Ltd [2021] UKUT 198 (AAC): the Commissioner had not shown that the same result would have followed, or provided an alternative basis for it.

3. The Tribunal refused permission to argue the late fourth ground. Applying the three-stage test in R(o.a.o.) Onowu v First-tier Tribunal and SSHD [2016] UKUT 00185 (IAC), it found a delay of just over nine months serious and significant, with no good reason for it. In all the circumstances, the proposed challenge to the relatively settled authority NCF (Leicester) Ltd [2012] UKUT 271 (AAC) might have affected the Traffic Commissioner’s participation in the appeal. The time taken to list the hearing did not excuse the delay. Grounds 1 and 2 were not decided because ground 3 disposed of the appeal.

4. The Tribunal set aside the revocation direction under section 37(2) of the Goods Vehicles (Licensing of Operators) Act 1995, reviving the operator’s licence. It considered that the earlier oral adverse determination at the inquiry did not appear to be a separate revocation direction made in accordance with the written-notice and representation requirements in section 27(2) and (3). Any such adverse determination fell away with the revocation direction. No further order was required.

• Upper Tribunal (Administrative Appeals Chamber): In [2026] UKUT 222 (AAC) , allowed the appeal on ground 3 and set aside the Traffic Commissioner’s revocation direction. It refused permission to add the late fourth ground and did not decide grounds 1 and 2.
• Traffic Commissioner for the West Midlands: Following a public inquiry, directed revocation of the operator’s licence on 19 February 2025 for failure to demonstrate appropriate financial standing. The Commissioner later granted a stay.