Addison Lee backs Government taxi reform plans saying national standards alone will not fix licensing problems
- Perry Richardson
- May 14
- 2 min read
Addison Lee has publicly welcomed the Government’s proposed overhaul of taxi and private hire licensing laws, adding further industry backing to reforms announced as part of yesterday’s King’s Speech.
Patrick Gallagher, CEO of Addison Lee, said the company supported the Government’s decision to bring forward a Draft Taxi and Private Hire Vehicle Bill, describing the current licensing framework as outdated and inconsistent.
The intervention from one of the UK’s largest private hire operators is significant given the growing political and industry focus on cross-border hiring rules, enforcement powers and the role of nationally operating app-based transport firms.
Gallagher said: “We welcome the Government’s commitment to bring forward a Draft Taxi and PHV Bill. For too long, an outdated licensing framework has created inconsistencies that undermine public safety and put responsible operators at a disadvantage.
“We are particularly encouraged that cross-border hiring has been identified as a central issue – national minimum standards alone are not enough. Having worked closely with the Department for Transport on these reforms, Addison Lee looks forward to continuing that collaboration as the Bill develops.”
The comments place Addison Lee firmly behind the Government’s wider position that current taxi and PHV legislation no longer reflects how the industry operates. Ministers have argued that fragmented licensing arrangements have weakened enforcement, created safeguarding risks and allowed major inconsistencies to develop between local authorities.
Cross-border hiring has become one of the most contentious issues in the sector. Current rules allow PHV drivers licensed in one authority to operate extensively in another, particularly in large urban areas where operators recruit drivers from councils with lower fees or less restrictive licensing conditions.
Critics of the current system argue this weakens local accountability because enforcement responsibility remains with the licensing authority that issued the licence rather than the authority where journeys predominantly take place. Councils and trade groups have repeatedly warned that the arrangement creates difficulties around compliance monitoring, vehicle inspections and passenger safety investigations.
The Government’s draft proposals acknowledge those concerns directly. Briefing documents released alongside the King’s Speech stated that enforcement resources are often “misaligned” because licensing activity does not match where journeys are undertaken.
London operator says proposed Taxi and PHV Bill must go beyond national minimum standards to address long-standing licensing inconsistencies
Industry observers will also note Gallagher’s reference to responsible operators being placed “at a disadvantage”. That reflects wider concerns among some established firms that inconsistent licensing regimes can distort competition by allowing operators and drivers to base themselves in authorities with lower compliance requirements while continuing to work elsewhere.
The Government has already indicated that national minimum standards alone may not resolve those issues. The draft Bill is expected to explore stronger information-sharing requirements, expanded national databases and enhanced enforcement powers for licensing authorities.
The taxi and PHV sector has expanded significantly over the past decade, driven by app-based booking technology and changing passenger demand. Government figures show there were around 313,000 licensed vehicles and 381,100 licensed drivers in England as of April 2024.
The forthcoming draft Bill will now move into pre-legislative scrutiny, where industry stakeholders including operators, councils and passenger groups will be invited to submit evidence before formal legislation is introduced to Parliament.
