Top Reasons Operators Lose Their Licence at a Public Inquiry

A Public Inquiry (PI) is a formal hearing led by the Traffic Commissioner to decide whether an operator is fit to hold a licence. For many, it’s a wake-up call. For others, it’s the end of the road.

If you’re a Restricted Licence holder, don’t assume you’re immune. You may only run one or two vehicles, but you’re still bound by the same legal duties as a national haulier. Failing to uphold them can — and often does — lead to licence revocation.

In this guide, we’ll explore the most common reasons operators lose their licence at a Public Inquiry — and how to avoid becoming one of them.

1. Poor Vehicle Maintenance Records

Why it leads to revocation:Failing to demonstrate a proper maintenance regime shows a lack of control over vehicle safety — a major red flag.

Typical issues:

• No inspection planner

• Missed safety inspections

• Gaps in PMI (Preventive Maintenance Inspection) reports

• No evidence of defect rectification

• No brake testing records

• Unroadworthy vehicles detected at roadside

How to avoid it:

• Schedule PMIs every 6–10 weeks and stick to it

• Keep reports for at least 15 months

• Use a digital or paper maintenance planner

• Rectify and record all defects with dates and signatures

2. No Evidence of Financial Standing

Why it leads to revocation:One of your Operator Licence undertakings is to maintain financial standing. If you can’t prove you have the required funds, your licence is no longer valid.

Common causes:

• Not maintaining bank reserves

• Failing to provide proof when asked

• Operating at a loss without disclosure

How to avoid it:

• Maintain minimum reserves (e.g. £3,100 for the first vehicle + £1,700 per additional one)

• Keep up-to-date bank statements or credit facility letters

• Submit evidence promptly if requested by the TC or DVSA

3. Failing to Respond to DVSA Letters or Requests

Why it leads to revocation:Ignoring correspondence gives the impression you’re evasive, uncooperative, or not in control.

Typical scenarios:

• DVSA requests records but gets no reply

• You fail to respond to a PI invitation

• You miss the deadline to submit representations

How to avoid it:

• Read all letters and emails carefully

• Respond professionally and promptly

• Contact DVSA if you need more time — they will often be reasonable

4. Tachograph Misuse or Ignorance

Why it leads to revocation:Restricted Operators often assume tachograph rules don’t apply — but that’s rarely the case.

Common mistakes:

• Not fitting a tachograph when required

• No driver card or vehicle unit downloads

• Driver hours infringements

• Misuse of exemption claims

How to avoid it:

• Check if your journeys are in-scope (over 3.5t and beyond 100km = usually yes)

• Install and calibrate tachographs where required

• Issue driver cards and download data every 28/90 days

• Train drivers on hours, breaks, and tacho use

5. Operating from an Unauthorised Site

Why it leads to revocation:Your Operating Centre must be declared and approved. Using an alternative site without permission breaches your licence conditions.

Typical issues:

• Parking vehicles at home or on the road

• Using someone else’s land without written permission

• No planning consent where required

How to avoid it:

• Ensure your licence lists the correct operating centre

• Notify the TC of any changes or additions

• Obtain and retain permission letters from landowners

• Keep evidence of planning consent if needed

6. “I Didn’t Know” as a Defence

Why it leads to revocation:Ignorance is no excuse. The Traffic Commissioner expects operators to understand and uphold their responsibilities — regardless of licence type.

Common misjudgements:

• Assuming small scale means fewer rules

• Relying on verbal advice

• Not reading guidance from GOV.UK or DVSA

How to avoid it:

• Educate yourself or hire a compliance consultant

• Attend training (CPC-style or Restricted Operator workshops)

• Read the DVSA Guide to Maintaining Roadworthiness regularly

7. Repeated Prohibitions or Roadside Failures

Why it leads to revocation:Multiple vehicle defects or enforcement notices suggest systemic failure, not just bad luck.

Typical findings:

• S-marked prohibitions for serious roadworthiness defects

• Multiple fixed penalties for weight or tachograph offences

• Poor OCRS score

How to avoid it:

• Review inspection results monthly

• Act immediately on any defects or enforcement actions

• Train staff and monitor vehicle condition daily

8. No Records or Disorganised Filing

Why it leads to revocation:The Traffic Commissioner expects full, clear, and accessible evidence of compliance.

Failings include:

• No defect reports or daily checks

• No driver licence check logs

• No records of training or downloads

• Random paper piles instead of structured files

How to avoid it:

• Create a digital or structured paper filing system

• Keep records for the required duration

• Back everything up

• Write a Record-Keeping Policy and follow it

9. Failure to Implement Changes After Warning or Audit

Why it leads to revocation:If you’ve been given a chance to improve and didn’t — the TC sees that as a clear failure of repute.

How it typically plays out:

• You were warned at an earlier PI or audit

• Issues were flagged — but ignored or worsened

• You return to PI with no progress

How to avoid it:

• Treat any DVSA warning or recommendation seriously

• Create an action plan and log changes

• Demonstrate what’s been done (e.g. documents, contracts, procedures)

10. Poor Attitude at the Public Inquiry

Why it leads to revocation:How you behave at a PI is as important as what’s on paper.

Damaging behaviour includes:

• Arrogance or deflecting blame

• Arguing with the Traffic Commissioner

• Making excuses instead of offering solutions

• Turning up with no documents or evidence

How to avoid it:

• Be honest, humble, and factual

• Admit past failings and show what’s changed

• Speak clearly and respectfully

• Bring organised documents and a plan

Conclusion

Losing your Operator Licence at a Public Inquiry isn’t about bad luck — it’s usually the result of avoidable failings, poor preparation, or inaction.

By understanding what the Traffic Commissioner expects — and putting the right systems in place — even small, owner-operator businesses can stay compliant, confident, and in control.

Restricted Licence holders are not exempt from standards. If anything, the spotlight is sharper — because the TC wants to know you understand your duties, even without a professional Transport Manager.

Next in the series:👉 Building a Bulletproof Compliance File: What to Keep and Why