CLOSING THE GAPS: Going beyond the National Minimum Standards for private hire licensing
- Wesley Bishop
- 6 minutes ago
- 3 min read
Addison Lee marked its 50th year of operating in the capital in 2025, and throughout its existence it has been a champion for the need for effective licensing, regulation, enforcement and public safety.
The Government’s move to introduce national minimum standards for the private hire industry is a welcome development in closing a critical regulation gap. Passengers rightly expect and deserve a reliable service wherever they travel, and the decision is an important first step in establishing a consistently high safety standard across the sector.
There is, however, an opportunity to make these reforms even stronger through increased enforcement powers for licensing operators, and percentage-based systems to disincentivise out-of-area working even further.
Giving licensing officers real enforcement powers
Passenger safety must be at the heart of any decision making on cross-border hiring.
While baseline standards have been confirmed, under the current rules, enforcement officers are still not able to stop vehicles licensed by a different authority. This has become an increasingly pressing issue as more drivers are being licensed outside of the areas in which they work. It means that even basic checks such as confirming the driver is licensed, insured, operator-registered, and in a roadworthy vehicle, cannot be carried out.
At Addison Lee, we are urging the introduction of stronger enforcement powers for licensing officers and committees. Officers should have the authority to stop and inspect any licensed vehicle or driver, no matter which authority has issued the licence.
Likewise, licensing committees must be able to act when drivers operating in their area, but licensed elsewhere, breach local rules. Where vehicles or documents are inadequate or invalid, enforcement officers should be able to take the vehicle off the road until the issues are resolved. If a driver commits an offence, such as plying for hire, the authority where it occurred should be empowered to investigate and take licensing action. These reforms would tighten compliance and deliver a meaningful boost to public safety across the country.
Accountability and flexibility
The issue of cross-border hiring extends beyond the issue of passenger safety - there are also questions around fairness for drivers. While the government’s announcement provides a stable baseline to disincentivise out-of-area working, it is not a silver bullet which will solve the issue alone.
A percentage-based system on out-of-area bookings would give operators flexibility while going one step further in preventing excessive licence shopping. This would maintain local accountability and ensure authorities retain oversight of services in their communities. For example, operators could be limited to fulfilling no more than 20% of bookings entirely outside their licensed area.
There are also practical considerations that warrant local flexibility. Authorities should be able to set this in line with operational geography. For example, an operations centre close to a border with another licensing authority will receive significant volumes of cross-border bookings. Other geographical considerations should also be made. Likewise, if there’s an airport, station or venue just outside their licensed area, they may get frequent requests by its customers to provide its services.
Additionally, events like train breakdowns or airline diversions often require taxis and cars from across a region to provide services due to high passenger volumes. The journeys are unlikely to return to an operator’s licensed area and may in fact terminate anywhere in the country.
The clearest benefit of a percentage-based system is that it would be measurable. All operators have to record details of bookings, including pick up and drop off addresses, and they could be required to submit weekly, monthly or quarterly data providing details of total bookings and any with pick-ups and drop offs outside of their licensed area.
Closing the door
We welcome the Government’s decision to address the private-hire industry’s concerns. By fully closing the door on licence shopping, empowering licensing officers, and keeping local authorities accountable, passengers will have greater confidence, drivers would compete on equal terms, and the public would regain confidence in the services operating within their boundaries.
Article by Wesley Bishop - Chief Commercial Officer at Addison Lee
