New proposals set out changes for taxi licensing

The UK Government has set out plans to reduce ‘out of area’ working in reforms to the licensing system for taxi and private-hire vehicle drivers.

Under current rules, 263 different local authorities issue licences to taxi and private-hire drivers. Drivers can obtain a licence from any issuing body, and as such, may register with local authorities with lower fees or that may be perceived to be less rigorous rather than in their area of residence and where they predominantly operate, such as in Wolverhampton, where 11% of private-hire drivers in England are registered.

In Greater Manchester, nearly half (49%) of private hire vehicles are now licensed by authorities outside of its ten councils. The city-region’s out of area figure of more than 12,000 has also risen sharply in recent years, from just under 7,000 in 2023.

Under the proposals set out in a new consultation launched by the Department for Transport, power to issue licenses would be transferred to 70 Local Transport Authorities, which already manage local transport planning. In Greater Manchester, there are 10 licensing authorities; however, under the proposals, this would be reduced to just one. Reducing the number of licensing authorities aims to limit opportunities for drivers to seek out areas with less stringent rules.

This public consultation will run for 12 weeks and will be available on the DfT website. The consultation follows proposed new standards on taxi licensing to strengthen safety and protections for passengers in taxis and private hire vehicles.    

Under the new rules, the Transport Secretary would have the power to introduce national minimum standards for taxi and PHV licensing.  

This would see all drivers subject to robust checks and would mean passengers can feel safe in the knowledge that their taxis and PHVs meet strict national standards, no matter where they are in the country.