Cross-border licensing and the ABBA proposal: can local enforcement be restored?
- Perry Richardson
- 15 hours ago
- 2 min read
Cross-border licensing has become one of the most divisive issues in the taxi and private hire vehicle (PHV) sector. At the centre is a system that allows drivers licensed in one authority to work almost entirely in another, often under lighter regulatory conditions. The practice has grown rapidly alongside the rise of ride-hailing apps, which can allocate bookings across boundaries instantly.
For passengers, the system can be confusing. A vehicle booked in one town may in fact be licensed hundreds of miles away under rules that look very different from those applied locally. For drivers and operators, it creates an uneven playing field. Those working in areas with stricter conditions, such as mandatory CCTV or accessibility requirements, face competition from out-of-area vehicles operating under less demanding rules but serving the same customers.
Local councils and enforcement officers have long voiced frustration. If a driver licensed elsewhere is operating in their area, their powers to intervene are limited. This leaves local authorities responsible for passenger safety but without the jurisdiction to take direct action in many situations. Transport for London, for example, has said that addressing cross-border working is its highest legislative priority.
One of the solutions gaining attention is the so-called “ABBA” rule. Under this approach, journeys must start or end within the authority where the driver or operator is licensed. The aim is to close the “anywhere-to-anywhere” loophole that currently allows drivers to accept work with no connection to their licensing base. Supporters argue that ABBA would restore accountability, ensuring that drivers remain tied to the authority that vetted and licensed them.
Another reform being discussed is the introduction of national enforcement powers. This would give officers the authority to act on any licensed vehicle operating in their area, regardless of where the licence was issued. Such powers could help to strengthen local oversight and improve passenger protection.
Critics of change point to the potential impact on driver flexibility and passenger choice, particularly in areas where demand is inconsistent. They also highlight the administrative and legislative challenges of creating new enforcement structures. However, supporters counter that without reform, local councils will remain unable to regulate effectively in their own areas, and public trust in licensing will continue to erode.
The current Transport Select Committee inquiry is expected to place cross-border working at the centre of its findings. Whether through ABBA, national enforcement powers, or a combination of both, the issue looks set to be a key part of any future overhaul of taxi and PHV licensing.
