CROSS BORDER: Can stronger local taxi enforcement powers solve the problem of ‘Out-of-Town’ private hire drivers?
Updated: Nov 3
The issue of out-of-town taxi drivers continues to be a thorn in the side of local authorities across the UK.
A recent debate in Parliament, led by Christopher Vince and addressed by Simon Lightwood, has highlighted the growing concern over local councils’ inability to enforce taxi regulations on drivers licensed outside their jurisdiction. The discussion has opened the door to a potential review of the current system and the possibility of much-needed legislative reform.
At the core of the issue is the problem of cross-border licensing, a practice that allows taxi and private hire drivers to operate outside the area in which they are licensed. This legal loophole has created significant enforcement challenges for local councils, who find themselves powerless to regulate drivers working in their areas but licensed elsewhere.
It’s a problem that has become increasingly common, particularly with drivers licensed in certain regions, such as Wolverhampton, choosing to operate far beyond the boundaries of their licensing authority.
Cross-Border Licensing: How Does It Work?
Under current UK taxi legislation, drivers can apply for a licence from any local authority and, once approved, are legally permitted to operate anywhere in England and Wales. This has led to a significant rise in so-called “out-of-town” drivers—those who hold licences from one council but predominantly work in another.
The controversy arises because, once a driver is licensed by one council, the authority where they actually operate has limited ability to enforce its local rules and standards on them.
Local councils are left to deal with vehicles and drivers over whom they have no licensing control, creating potential gaps in public safety and standards. This has led to growing frustration among both local authorities and local drivers, who feel undercut by competitors licensed in areas with less stringent requirements or cheaper fees.
A Shift Towards Collaboration
A recent development in Wolverhampton has provided an interesting case study in how councils are attempting to tackle the issue. Wolverhampton, known for issuing a significant number of private hire licences, has been at the centre of the cross-border licensing debate. In response to the criticism that drivers licensed in the city are operating far beyond its borders, Wolverhampton has recently sought to enter into agreements with other local authorities to allow them to enforce licensing requirements on these out-of-town drivers.
This cooperation between councils is seen as a short-term solution that could help address some of the most immediate enforcement gaps. Wolverhampton’s move to work with other councils is a recognition that enforcement must be shared to be effective. By allowing local authorities to apply their own enforcement powers to drivers licensed elsewhere but operating within their jurisdictions, this partnership could help bridge the current regulatory gap.
Enforcement Challenges and Costs
However, sharing enforcement responsibilities across councils is not without its challenges. The cost of enforcement is usually borne by the drivers licensed in a given area, through their licence fees. When councils take on the responsibility of enforcing regulations on out-of-town drivers, the costs of that enforcement can potentially increase significantly, pushing up the fees for locally licensed drivers.
This raises concerns among local drivers who feel they are being unfairly penalised by having to subsidise the costs of enforcing rules on drivers from other areas. As it stands, many local drivers are already facing increased costs due to rising insurance premiums and stricter vehicle standards. Adding to this the financial burden of enforcing regulations on out-of-area drivers could further exacerbate frustrations within the industry.
A Possible Path to Legislative Reform
In the recent parliamentary debate, Simon Lightwood acknowledged the need for improved enforcement tools to help local councils manage cross-border licensing issues. He pointed to potential immediate solutions such as co-authorisation agreements, which would allow enforcement officers to act across different local authority boundaries, and community safety accreditation schemes, where individuals or groups are given limited powers to assist in maintaining public safety.
If these measures prove effective, they could form the basis for wider legislative reform. There is a growing consensus that the current regulatory framework does not adequately address the challenges posed by out-of-town drivers. Granting local authorities more powers to enforce their regulations across borders could help in some way to level the playing field and ensure that all drivers are held to the same standards, regardless of where they are licensed.
However, any move towards legislative change is likely to be met with careful scrutiny. The balance between local enforcement and the need for a flexible licensing system that allows drivers to operate where demand is highest will be a key issue.