CROSS BORDER: MPs press for action on taxi licensing loophole linked to child exploitation concerns
- Perry Richardson
- 13 minutes ago
- 2 min read
The Government has confirmed it is actively seeking legislative routes to tighten taxi licensing regulations after renewed calls from MPs to close cross-border loopholes used by some private hire drivers.
Liberal Democrat MP Lisa Smart raised concerns in Parliament over the lack of progress on key recommendations made in two independent reports into child sexual abuse and group-based exploitation. Among them was Baroness Casey’s recommendation that the Government should end the practice of “out-of-area” taxi operations by implementing stronger national licensing standards.
Smart highlighted that in Greater Manchester, many private hire vehicles are licensed in areas far outside the region, often choosing licensing authorities known for more lenient or less costly procedures. She pointed specifically to Wolverhampton, more than 100 miles away, as a frequent choice for drivers operating in the North West.
“This fragmented system has been exploited for years,” she said, suggesting that the current English Devolution and Community Empowerment Bill could offer a path to close the loophole. Smart urged the Minister to work cross-party to implement reforms and deliver on Baroness Casey’s safeguarding recommendations.
Responding on behalf of the Government, Home Office Minister Jess Phillips confirmed recent meetings with the Department for Transport focused on the issue of taxi licensing. She acknowledged concerns stemming from earlier deregulation and stated that the Government intends to reverse some of the resulting harm, especially in areas impacting public safety and safeguarding.
“We are currently looking for a legislative vehicle,” said Phillips. “The Government have said that we will undo some of the harm caused by the deregulation legislation of the past.”
Phillips said she welcomed cross-party collaboration, citing her own conversations with victims of exploitation who continue to urge unity and action over political disagreements.
Although the Minister did not commit to including an amendment in the current Bill, she repeated the Government’s intention to legislate and suggested that options are under active consideration.
The exchange follows years of criticism from local councils and campaigners who argue that the current system allows drivers to “licence shop” by applying through authorities with lower standards, then operating in areas where they were not vetted or approved locally.
Licensing regions including Manchester and London have repeatedly voiced frustration at their inability to control who works on their streets, particularly when local standards on safeguarding, vehicle checks, or English language skills differ significantly from those applied by other licensing authorities.
The practice of cross-border hiring remains legal under the Deregulation Act 2015, which allows private hire drivers to operate outside the area in which they are licensed, provided the booking is made through a licensed operator.
