Small business owner takes on UK government over 'unfair' loophole


Mini-bus company boss Martin Allen appears to have won the first round in a battle against a legal loophole which he claims is destroying his business and many others.
His persistence to get justice means many thousands of school buses – and buses funded by local authorities - across the country could be driven by drivers who do not meet the necessary legal standards.

The Department for Transport has now issued a warning to ‘community transport operators’ across the UK that their drivers may be operating illegally. This has led to the Community Transport Association calling for an emergency meeting with the Government to deal with the threat to its members.
At the heart of this dispute is bus driver Martin Allen who has run his company J A Travel Ltd for 18 years operating in the Mansfield and Nottingham areas. At its height the company employed 18 drivers and was tendering for contracts for local authorities and others on a regular basis.
However since 2010, the fortunes of J A Travel Ltd and many similar companies has fallen dramatically. Martin believes the use of section 19 permits by community transport operators has been integral to this.
Section 19 was originally introduced to allow volunteer drivers – for example from churches or charitable groups – to drive mini-buses without being trained to the standard of a professional paid driver. Many organisations went on to use this permit to run multi-million pound transport companies – under a not-for-profit banner.
Martin Allen believes this is unfair and today it’s believed there are 3,500 of these ‘not-for-profit’ companies operating across the UK.
Martin felt strongly this was not only unfair on commercial operators but was outside of the spirit of the law. He took the matter to the European Commission. The UK Government was asked to respond on the matter and that process is still ongoing.
Martin said: “I’ve dedicated several years of my time and thousands of pounds to right this wrong. My business and many others have been decimated by a legal loophole which allows Community Transport Operators to bid for contracts, often involving public money – while not having to meet the much higher safety requirements of commercial drivers.
“This means my company can never compete on a level playing field as these companies don’t have the same overheads and training costs to bear. More importantly it’s a safety issue. Some of these CTOs are transporting the most vulnerable in our society – and they are not as highly trained as my drivers or the drivers of any other commercial entity.”
Martin took his case to the European Commission claiming the UK Government was breaking the law by allowing this practice to continue. The UK Government has now issued a letter to CTOs warning them they could be using drivers with the wrong licences.
Martin said: “This could have huge implications for many people. Much school transport is run in this way and overnight schools could find their drivers are declared illegal. Insurance could also be affected. It will be very bad news for the Community Transport Operators.

“My hope is that this will help my sector start to recover as we will then be able to bid for contracts on a level playing field with any other provider of transport services for the public.”