Burnley Council freezes taxi licence fees despite falling income caused by cross border licensing migration
- Perry Richardson
- Jul 12
- 2 min read
Updated: Jul 14
Burnley Council’s Licensing Committee has confirmed that taxi licensing fees will remain unchanged for the 2025/26 financial year, despite a significant shortfall in income.
The decision follows continued challenges in the local taxi trade, with cross-border licensing and app-based operators pulling drivers away from licensing locally.
A report considered by the Committee on 3 July outlined a persistent decline in income since 2015, with 2024/25 revenues falling £63,000 short of the budgeted target. The council has set the taxi licensing income budget at £142,000 for several years, but has consistently failed to meet it due to a reduced number of local licence applications.
The difficulties stem in part from drivers choosing to be licensed by other councils with more lenient conditions or lower costs. Under current rules, a private hire driver must be licensed by the same authority as the vehicle and the operator they work for. Authorities considered more favourable often offer reduced vehicle age limits, less frequent vehicle tests, and lighter training requirements.
To ease financial pressures, the council has cut its taxi licensing service costs by £56,000, mainly through staffing changes and removing fees for services now available at no cost. Revised forecasts show £75,000 in licence income against recoverable costs of £98,000, still leaving a £23,000 gap.
The Committee was also asked to consider whether further changes to policy might make local licensing more appealing. Options under review include changes to vehicle age limits, knowledge test requirements and hackney carriage vehicle specifications.
Officers advised caution, noting that policy standards were introduced to uphold public safety. However, the report acknowledged that relaxing certain requirements may attract more applicants and help balance the service budget.
The council continues to monitor budget performance closely and is preparing for potential reforms outlined in the Government’s English Devolution White Paper. These proposals could shift taxi licensing powers from district councils to larger regional transport authorities, aiming to address current inconsistencies between areas.
Burnley Council also plans to work with neighbouring authorities and central government to identify sustainable ways of funding the taxi licensing service, including options that do not compromise on safety standards
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