CROSS-BORDER LICENSING: What it means for drivers in smaller licensing authorities
- Perry Richardson
- Sep 11
- 2 min read
Drivers licensed in smaller towns and boroughs are facing growing pressure as cross-border taxi operations continue to increase, raising questions over the effectiveness of current licensing laws.
Under existing legislation, a driver licensed by any local authority in England can legally operate across council borders, so long as the booking is made through a licensed operator. This means drivers from larger neighbouring cities can pick up jobs in areas where they are not subject to local enforcement or licensing standards.
Smaller licensing authorities, such as those in rural or semi-urban areas, say the system is putting their compliance work under strain and leaving local drivers at a disadvantage. Councils often invest in higher standards, which may not be matched by neighbouring authorities with different standards.
While local drivers must meet detailed vehicle and driver criteria, including regular inspections and area-specific knowledge, out-of-area drivers are not bound by the same rules once they start working beyond the authority that licensed them.
This has led to concerns around enforcement. Local officers have fewer powers to act directly against drivers licensed elsewhere, even if they are operating daily in their area. Local officers can raise a complaint to the drivers authority, but they will have no direct say in what enforcement is taken or if an action will be taken at all.
For drivers working under small licensing authorities, the presence of out-of-area vehicles reduces local fare opportunities, particularly during peak periods. It has also raised fears about oversupply and fare pressures.
Several authorities have raised the issue during the UK Transport Committee’s ongoing inquiry into taxi and private hire vehicle standards. They argue that without reform, local licensing systems risk becoming ineffective.
Some are now backing regional approaches to licensing, where powers would sit with Mayoral Combined Authorities or groups of councils. This would give more control over who can operate within a given area and allow for consistent enforcement, regardless of where a driver was first licensed.
With app-based ride-hailing continuing to expand and booking platforms often operating across multiple council boundaries, the call for change is growing.
