Scaffolder operator licence refused by commissioner
If you run transport for your business, this case is a useful lesson. A scaffolding firm, XSS, applied for an operator licence covering one vehicle and was refused. The Traffic Commissioner made the decision under Section 13(5) of the Goods Vehicles (Licensing of Operators) Act 1995 after finding the firm failed on fitness (Section 13B), compliance with undertakings (Section 13C), and financial resources (Section 13D).
Traffic Commissioners regulate heavy goods vehicle, bus and coach operators in Great Britain. Their job is to make sure you are fit to operate, that vehicles are kept roadworthy and drivers follow the rules, and that your business has the money and systems to do that safely.
This application went to a formal inquiry because there were concerns about links to previously revoked licences and missed regulatory duties. When called to attend, XSS did not appear and did not send in the required paperwork. As the Commissioner put it, “the burden lies with the applicant to satisfy me that it meets the relevant statutory requirements”.
The decision also recorded a link to XP Scaffolding Ltd, which went into liquidation in 2023 owing more than £120,000, including debts to HMRC. The Commissioner described the new bid as a “phoenix” attempt to continue trading while leaving liabilities behind-exactly the kind of behaviour the licensing regime aims to deter.
If the term is new to you, a “phoenix” company is a fresh entity that carries on the business of a failed one. There are lawful rescue routes that protect jobs and parts of a business, but using a new shell to dump creditor or tax debts is likely to trigger regulatory action and, in serious cases, can lead to enforcement by other authorities.
Both directors had completed Operator Licence Awareness Training (OLAT) in May 2025. OLAT is helpful learning on your duties as an operator, but training alone is not proof of day‑to‑day compliance. In this case, the Commissioner decided the negative features of the evidence outweighed any credit from attending the course.
Financial standing matters because safety costs money. You need enough readily available funds to maintain vehicles, pay for inspections and repairs, and keep drivers and other road users safe. In practice, you usually show this with recent bank evidence and by demonstrating that maintenance and drivers’ hours systems are properly resourced.
What this means if you are applying: engage early, attend hearings when called, and be ready to evidence how you run things. You will need clear records for maintenance and drivers’ hours, up‑to‑date financial evidence to meet the standing requirement, and-if you are applying for a standard licence-proof of professional competence. The Commissioner signalled that any future application must be backed by credible systems, funding and competence.
If you would like the full detail, the decision is published on the GOV.UK Traffic Commissioner regulatory decisions page. For press enquiries, the Office of the Traffic Commissioner lists: pressoffice@otc.gov.uk.