CROSS-BORDER CHALLENGE: Taxi and private hire ‘LICENCE SHOPPING’ creating safeguarding risks, says council
- Perry Richardson
- 12 hours ago
- 2 min read
Newcastle-under-Lyme Borough Council has warned that “licence shopping” continues to undermine local taxi licensing standards, creating risks for passengers and weakening enforcement.
The council’s report, presented on 19 August, highlights how inconsistent rules across England’s 300 licensing authorities have allowed some drivers and operators to bypass stricter requirements by applying in areas with lower thresholds. Once granted a licence, they can still return to work in areas where their application may have been rejected.
The practice has become more common since the Deregulation Act 2015 allowed private hire operators to subcontract bookings between local authority areas. According to the council, this has turned certain authorities into “beacons” for applicants seeking cheaper or faster licensing routes, or those facing rejection elsewhere.
National reports have already linked weaknesses in taxi licensing to safeguarding failures. The Jay Report into child sexual exploitation in Rotherham (2015), the Telford Inquiry (2024), and Baroness Casey’s national review earlier this year each highlighted loopholes in taxi regulation and called for urgent reform.
Newcastle’s own statistics show the local effect. Since introducing stricter policies in 2019, the borough has seen a 47% drop in licensed drivers and a 35% fall in hackney carriage numbers. Officials say drivers have openly admitted to leaving for neighbouring authorities where licensing conditions are less demanding.
The Government is now consulting on changes to the system through the Transport Committee’s inquiry into taxi licensing, which is accepting evidence until 8 September 2025 (Parliament call for evidence). Councils and trade bodies are pressing for new standards to close loopholes and reduce the incentive for licence shopping.
The councils licensing lead Matthew Burton told the Newcastle-under-Lyme Borough Council public protection committee: "There are some local authorities that have very high standards and some that have very low standards, and many in between. There is a lack of consistency.
"What that means is that individuals are able to 'licence shop', and find the licensing authority that they may be able to get a licence from, when they might not be able to from their home authority.
