CLOSING SOON: Vital inquiry into taxi and private hire licensing set to close for evidence
- Perry Richardson
- Sep 7
- 3 min read
The Transport Select Committee’s inquiry into the licensing of taxis and private hire vehicles (PHVs) is about to reach a crucial stage, with the deadline for written submissions closing on Monday 8 September.
The Committee is reviewing whether the current licensing system gives local authorities the powers they need to regulate effectively, and whether reforms are required to create greater consistency across England.
Taxis and PHVs are seen as an essential part of the transport network, particularly for people who struggle to use other modes and for the night-time economy. However, with more than 260 licensing authorities across England setting their own rules, passengers and drivers face a patchwork of requirements. Differences in safety measures, accessibility standards, and payment options create what has been described as a postcode lottery for users and operators alike.
One of the central issues being considered is whether national minimum standards should be introduced. The Committee is assessing if a baseline of requirements covering driver vetting, safeguarding training, vehicle safety and accessibility could raise standards nationwide. Local authorities could still apply further conditions tailored to community needs, but the introduction of a national framework would aim to end “licence shopping” and restore public confidence in the sector.
Cross-border working remains another major fault line. Current rules allow drivers licensed in one area to work extensively in another, often under lighter regimes. Critics say this creates an uneven playing field and leaves local officers without the jurisdiction to take action against out-of-area vehicles. Suggested reforms include introducing an “ABBA” rule, where journeys must start or end in the driver’s or operator’s licensing authority, and giving enforcement officers national powers to act on any licensed vehicle operating in their area.
The rise of digital ride-hailing platforms has also been highlighted as a regulatory challenge. These platforms can allocate work across licensing boundaries instantly, exposing gaps in standards. The inquiry is exploring whether such platforms should be treated in the same way as traditional operators, with clear operator licensing requirements and a duty to share trip and safety data with regulators.
Complaints and incident reporting is another area under review. At present, systems vary from council to council, and some app-based complaints never reach licensing teams. A proposal being discussed is the creation of a national online portal that would direct reports to the appropriate authority, while also requiring operators to share serious complaints and outcomes with regulators.
The Committee is also looking at the effectiveness of the national revocations and refusals register (NR3S). While its mandatory use since 2023 has been welcomed, the database only covers decisions made since 2018 and relies on councils uploading information quickly. Calls have been made to expand the scope of the register to include reasons for decisions and potentially extend its use to operators and vehicles as well as drivers.
Looking further ahead, the inquiry will also examine how the licensing system should adapt to the arrival of autonomous vehicles. Current law is built around human drivers, and without reform, some future ride-hailing models may fall outside existing taxi and PHV definitions. A new licensing class for autonomous services, with requirements on safety certification, accessibility, monitoring and data transparency, is expected to be discussed.
Once the deadline passes, the Committee will begin reviewing the evidence in the autumn. Its findings could lead to one of the most significant overhauls of taxi and private hire regulation in recent years, reshaping how passengers use services and how drivers and operators are licensed across the country.
