COULD LICENCE CAPS BE COMING? GMB links cross-border reforms to driver earnings and potential caps in roundtable DfT debate
- Perry Richardson
- 3 hours ago
- 3 min read
The GMB Union has urged the Government to consider cross-border taxi and private hire reform as part of a much broader overhaul of the licensing system, rather than introducing standalone restrictions that could have unintended consequences for drivers and operators.
In an update following a recent Department for Transport (DfT) roundtable on the proposed Taxi and Private Hire Bill, the union revealed that participants discussed an informal range of options aimed at tackling one of the industry’s longest-running issues: cross-border hiring.
While the Government has yet to publish firm proposals, GMB said several possible approaches to reform were presented for discussion. Rather than backing or opposing individual options outright, the union argued that any decision on cross-border rules should sit alongside other structural reforms currently under consideration.
The union said: “An informal series of options for cross-border rules were tabled for discussion. We argued that any cross-border restrictions have to be considered within the framework of other potential changes in the industry.”
That position reflects a growing debate within the taxi and private hire sector. For years, many drivers and licensing authorities have argued that the current legal framework allows operators to dispatch bookings using vehicles licensed by authorities many miles away from where the work is actually taking place. Critics say the practice weakens local licensing control and allows operators to seek licences from authorities perceived to have lower costs or less restrictive licensing requirements.
However, GMB believes reforming cross-border hiring alone could fail to address wider issues affecting the industry.
The union pointed to the Government’s separate consultation on merging licensing authority areas, suggesting that physically larger licensing regions would naturally reduce the number of administrative borders that vehicles cross during normal operations.
It explained: “For example, the consultation on merging licensing areas which would create physically larger licensing areas i.e. with fewer borders, this would also have an impact on local transport plans i.e. perhaps including how many vehicles can be sustained in an area.”
The comments suggest GMB sees licensing reform as an opportunity to rethink how local markets are managed rather than simply redrawing the rules around where drivers can accept bookings.
One of the most significant points raised by the union relates to the number of licensed vehicles operating in each area. While numerical caps have historically been associated with hackney carriage licences in some parts of the UK, private hire vehicle numbers have generally remained unrestricted.
GMB believes any move towards larger licensing areas could provide the basis for considering whether overall vehicle numbers should be managed more strategically.
The union said: “Our view is that this could also a basis for capping vehicle/driver numbers to help stabilise earnings and provide the foundations of a mechanism to manage any future introduction of AV’s.”
The proposal links three issues that are increasingly being discussed across the sector. The first is driver earnings, with many drivers reporting that increasing vehicle numbers have intensified competition for work. The second is transport planning, where local authorities may wish to better understand the balance between passenger demand and licensed vehicle supply. The third is the future arrival of autonomous vehicles, which GMB argues should not be considered separately from today’s licensing decisions.
Although the Taxi and Private Hire Bill is not expected to legislate directly for autonomous vehicles, the union believes any long-term licensing framework should be capable of adapting if driverless passenger services become more widespread in future.
The comments also highlight that the debate around cross-border hiring is becoming increasingly interconnected with wider questions about licensing structures, market regulation and the future shape of the industry. Rather than viewing cross-border reform as a single legislative issue, GMB is arguing for a package of changes that considers how licensing boundaries, vehicle numbers and future transport policy interact.
Exactly which cross-border proposals the Department for Transport ultimately adopts remains unclear. However, the union indicates that discussions have moved beyond simply restricting where drivers can work, towards a broader conversation about how England’s taxi and private hire licensing system could be reorganised to reflect changing market conditions.
