Parks Haulage Ltd, Re

Financial standing for a goods vehicle operator may be demonstrated by a combination of financial evidence. Paragraph 6A of Schedule 3 to the Goods Vehicles (Licensing of Operators) Act 1995 is not exhaustive. Bank statements may be particularly reliable, but other evidence, including unaudited accounts, cannot be excluded merely because it is unaudited.

The evidence must be considered and given such weight as its reliability and the circumstances require. A Traffic Commissioner who wholly disregards potentially material accounts commits an error of law. The Upper Tribunal may set aside the revocation without remittal where subsequent evidence establishes that financial standing is currently met.

Parks Haulage Ltd held a standard heavy goods vehicle operator’s licence. Following a public inquiry and several periods of grace, the Traffic Commissioner revoked the licence for failure to demonstrate the required financial standing.

The operator relied on bank statements and filed unaudited accounts showing substantial shareholder funds. The Traffic Commissioner’s calculation considered the bank statements but disregarded the accounts. The operator appealed, arguing that the accounts were legally relevant and should have been assessed, and advanced further arguments concerning a public inquiry, proportionality and delay.

The central issue was whether the Traffic Commissioner erred in law by excluding the unaudited accounts from consideration.

1. Appeal allowed. The Traffic Commissioner’s decision dated 15 November 2024 revoking the operator’s licence was set aside.
2. The Upper Tribunal applied the appellate approach in Bradley Fold Travel Ltd & Peter Wright v Secretary of State for Transport [2010] EWCA Civ 695. The appellant had to show that the decision was plainly wrong, meaning that the reasoning process and application of the law required a different conclusion.
3. Financial standing is a continuing requirement. Although cash held in a bank account over time may be one of the most reliable indicators of available finance, legislation does not exclude other forms of financial evidence. Paragraph 6A of Schedule 3 to the Goods Vehicles (Licensing of Operators) Act 1995 is not an exhaustive statement of how financial standing may be demonstrated.
4. The Upper Tribunal followed Michael Hazell (No. 2) [2017] UKUT 0221 (AAC) and Thandi Coaches (Red) Ltd [2021] UKUT 198 (AAC). Evidence must be considered for what it is worth in the circumstances. Unaudited accounts may be unreliable or may deserve little weight, but they cannot be excluded solely because they are unaudited.
5. The accounts were potentially material to financial standing and had been wholly disregarded. The Traffic Commissioner was therefore plainly wrong and the revocation decision was unsound. It was unnecessary to determine the remaining grounds of appeal.
6. In light of a later decision confirming that the operator met the financial standing requirement for its current authorisation, remittal for further investigation was unnecessary. No further order was made.

• Traffic Commissioner for the North East: revoked the operator’s licence for lack of financial standing on 15 November 2024.
• Upper Tribunal (Administrative Appeals Chamber): allowed the appeal, set aside the revocation decision and made no further order.