Cross-border taxi working under scrutiny as TfL puts forward ‘very strong case’ to DfT for tighter controls
- Perry Richardson
- Apr 1
- 3 min read
Updated: Apr 2
Cross-border working in the taxi and private hire sector is facing renewed scrutiny in London, as transport officials step up calls for legislative reform to close what they describe as a significant regulatory loophole.
Speaking at a recent session of the London Assembly Transport Committee, TfL Commissioner Andy Lord said Transport for London (TfL) has made a “very strong case” to the Department for Transport for changes that would restrict where licensed vehicles can operate.
Cross-border hiring allows private hire drivers licensed in one local authority to undertake journeys in another. In practice, this has led to concerns that some drivers licensed outside London are operating almost entirely within the capital, without being subject to the same licensing standards or regulatory oversight as TfL-licensed drivers.
Lord told Assembly Members that the issue is a “real concern” for both regulators and the trade. “There’s potential that there’s vehicles in London that aren’t to the same specification and safety requirements as London licensed vehicles,” he said. “And of course, they’re plying in an area where they weren’t actually licensed or regulated.”
London transport leaders warn regulatory loophole is undermining safety standards and market fairness across the capital
The concerns extend beyond safety to include economic and operational impacts. London-licensed drivers are required to meet specific standards, including vehicle requirements and, in the case of black cabs, extensive knowledge testing. Industry representatives argue that cross-border working creates an uneven playing field by allowing some operators to bypass these requirements while still accessing the same customer base.
TfL officials indicated that momentum for reform is building within government. Lord pointed to “proposed amendments being considered as part of English devolution legislation change going through Parliament”, adding that the issue has gained further attention following the recommendations of the Casey Review.
Deputy Mayor of London Seb Dance reinforced the urgency of the issue, describing cross-border hiring as a “serious issue” that undermines wider efforts to regulate the sector. “We understand that there are many different proposals on how we can better shape the PHV industry and cross-border hiring does undermine that,” he said.
One of the key challenges for policymakers is balancing enforcement with operational flexibility. TfL is not seeking to prevent legitimate cross-border journeys, such as long-distance bookings that begin or end outside London. Instead, the focus is on restricting drivers from being effectively based in areas where they are not licensed.
Lord outlined the principle behind TfL’s position, stating that if a vehicle is licensed in another authority, “it is primarily to be used in that licensing authority’s jurisdiction, not to come and be based in London 100% of the time”.
Any changes would need to be supported by clear enforcement mechanisms, which remain a complex aspect of the debate. Questions around how to monitor driver activity and define operating boundaries are yet to be fully resolved.
The issue of cross-border working is also closely linked to broader concerns about the scale of London’s private hire market. With over 100,000 PHVs currently licensed in the capital, TfL has warned that growth could become “unsustainable”. However, officials have acknowledged that without addressing cross-border flows, attempts to manage vehicle numbers locally would have limited effect.
The debate has also exposed differing views across the industry. Some private hire operators argue that cross-border working supports flexibility and helps meet passenger demand, particularly during peak periods or in areas with limited local supply. They also point to data suggesting that safety standards are broadly consistent across licensed drivers, regardless of where they are registered.
However, critics, including taxi representatives and many local authorities, argue that the current system weakens accountability and makes enforcement more difficult. They maintain that local regulators are best placed to oversee drivers operating within their areas and that consistent standards are essential for passenger safety.
TfL has been engaging with both taxi and private hire stakeholders as part of ongoing discussions, with cross-border hiring remaining a regular agenda item. Lord confirmed that meetings with industry representatives have taken place in recent weeks, reflecting the level of concern within the sector.
While there are indications that government is considering reforms, no firm timeline has been set for legislative change. In the meantime, TfL continues to rely on existing regulatory tools, which are limited in their ability to address cross-border activity directly.
