Cross-border licensing reforms are on the agenda: What could change and who will feel it?
- Perry Richardson
- Aug 13
- 4 min read
Updated: Aug 17
A fresh Commons Transport Committee inquiry is examining how taxi and private hire standards are set and enforced after years of concern about inconsistent rules between licensing areas. Cross-border working and its impact on safety, competition and local control will feature heavily in that work.
Ministers already have building blocks in place. Statutory Taxi and Private Hire Vehicle Standards were issued in 2020 to raise safeguarding practices across England. The 2022 Safeguarding and Road Safety Act created legal duties for licensing authorities to share risk information and record serious decisions on a central database. Both steps respond to risks highlighted by past failings and the growth of out-of-area operations.
Why change is being pushed now
The Deregulation Act 2015 allowed private hire operators to subcontract bookings across licensing borders. Technology then accelerated out-of-area working at scale. Critics argue the result is patchwork standards and enforcement gaps where one council licenses and another has to manage the activity.
Numbers underline the concern. City of Wolverhampton Council has become a national licensing hub, with driver numbers rising from 16,655 in May 2021 to 49,714 by 31 December 2024. Freedom of Information data show more than 20,000 private hire driver licences issued between January 2023 and January 2025, generating over £5 million in fees.
Why the Casey Report has sped things up
Baroness Casey’s recent work on group-based child sexual exploitation placed taxi licensing back under the microscope. A summary of official responses records Government acceptance of her recommendations and an intention to close cross-border loopholes, adding momentum to reforms already urged by councils and city regions. Rotherham’s own documentation continues to reference the original inspection in 2015 that exposed serious licensing failings, linking historic lessons to today’s debate.
What changes are most likely
National minimum standards are expected to move beyond guidance into legislation. The 2018 Government-commissioned working group recommended national rules for drivers, vehicles and operators. DfT best practice guidance has since been updated, but councils and transport bodies still press for statutory minimums to remove incentives to shop around for the easiest licence.
A start-or-finish rule for journeys, long advocated by Transport for London, is on the table. It would require private hire trips to begin or end within the licensing area of the operator, driver and vehicle.
Limits on cross-border subcontracting may be considered. The 2015 provision that opened up nationwide subcontracting is cited as a driver of today’s out-of-area model. Any rethink would have to balance enforcement practicality with service coverage, especially via app-based operators.
Regional control could grow. Greater Manchester is campaigning for powers to sit with mayoral combined authorities, aligning licensing and enforcement with functional travel areas. The Transport Committee inquiry specifically flags uneven local regimes as an issue to solve.
Stronger out-of-area enforcement is also likely. The 2022 Act improved data sharing. Next steps could include clearer powers for officers to act against any licensed driver operating in their district, not only those they license.
Who stands to gain if rules tighten
Passengers and councils in areas that set higher standards would benefit from consistent vetting and clearer accountability. London and Greater Manchester have campaigned for change, arguing that local leaders need tools to regulate services operating on their streets. TfL has repeatedly urged national action on cross-border hiring, and the London Assembly has pressed ministers on the issue.
Local operators and taxi drivers who already meet higher thresholds may see a more even field on costs and compliance as national minimums and geographic rules come in. Wales is pursuing consistency through national standards guidance while it develops legislation, showing another route to level requirements.
Who could lose out
Authorities that rely on fee income from large volumes of out-of-area applicants could see budgets hit if licensing is regionalised or if geographic rules reduce demand. Wolverhampton’s rapid growth in licence volumes and associated income illustrates what could be at stake.
App-based operators and out-of-area drivers who depend on flexible subcontracting and national working may face higher costs and the need to relicense where they actually operate. Recent reports of long processing queues at both Wolverhampton and TfL show the implementation risks if rules change without capacity planning.
Who is most publicly backing reform
Greater Manchester has been the most vocal in recent months. Mayor Andy Burnham has called the current framework broken and wants devolution of licensing powers with a clampdown on out-of-area working.
London has kept pressure on national government for years through published policy papers and Assembly scrutiny. TfL’s cross-border hiring proposals remain a reference point in the debate.
Councils that experienced past safeguarding failings, such as Rotherham, continue to support tighter control and national action. Parliamentary attention has also risen, with MPs tabling motions and the Transport Committee inquiry now underway.
What to watch next
Evidence to the Transport Committee during autumn will indicate the scale of change ministers are prepared to pursue. Expect the core choices to centre on national minimums, journey geography, regional control and practical enforcement powers. The policy direction points to less room for arbitrage between licensing districts and more accountability where vehicles actually operate.
