DRAFT TAXI AND PHV BILL: King’s Speech bombshell as Government unveil biggest taxi law shake-up since Victorian era

The Government has confirmed plans to introduce a major overhaul of taxi and private hire vehicle licensing laws as part of today’s King’s Speech, with ministers promising the most significant reform of the sector in decades.

The proposed Draft Taxi and Private Hire Vehicle Bill will be put forward for pre-legislative scrutiny and is designed to replace what ministers describe as an outdated and fragmented licensing framework that no longer reflects how passengers travel, book and use taxi and PHV services.

The reforms are expected to have major implications for licensing authorities, operators, drivers and app-based transport platforms across England. The Government said the legislation is intended to improve public safety, strengthen safeguarding protections, modernise enforcement powers and create greater consistency between licensing authorities.

According to briefing documents released alongside the King’s Speech, ministers believe the current framework has struggled to keep pace with cross-border working, digital booking technology and nationally operating private hire businesses. Outside London, much of the sector remains governed by legislation dating back to the Town Police Clauses Act 1847, legislation originally designed around horse-drawn transport and locally operating hackney carriage services.

Draft legislation aims to modernise England’s fragmented taxi and PHV licensing system with tougher enforcement powers, mandatory information sharing and national standards

The Government said the draft Bill would create a “single, consistent framework across England” aimed at improving trust in taxi and PHV services while reducing inconsistencies between licensing authorities.

One of the central measures proposed is the introduction of stronger enforcement powers for regulators. Ministers said licensing authorities would be given enhanced powers to take swift action against drivers and operators that breach licence conditions or fail to meet required standards.

The proposed legislation also seeks to improve nationwide transparency through mandatory information sharing between authorities. A national database of licensed vehicles, drivers and PHV operators would be expanded and strengthened to support safeguarding investigations, licensing checks and enforcement activity across authority boundaries.

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The issue of cross-border hiring is expected to remain one of the most closely watched elements of the reforms. Current legislation allows PHV drivers licensed in one authority to operate extensively in another, creating long-running tensions between councils, local taxi trades and operators.

The Government acknowledged that enforcement resources are often misaligned because licensing activity does not always take place where journeys are undertaken.

The briefing documents state that licensing standards and practices currently vary widely between authorities, including differences in fees, conditions, enforcement approaches and decision-making processes.

Ministers said national standards alone are unlikely to fully resolve the problem without further legislative alignment between where licences are issued and where journeys occur.

Safeguarding forms a significant part of the proposed reforms. The Government said the Bill would deliver on commitments made following Baroness Casey’s National Audit on Group-based Child Sexual Exploitation and Abuse. Officials said weaknesses in fragmented taxi and PHV licensing systems have previously created vulnerabilities that can be exploited by offenders.

The draft legislation is expected to strengthen accountability around licensing decisions while supporting wider information sharing between authorities and enforcement agencies. The Government said existing criminal record checks and guidance have improved individual vetting processes but do not adequately address wider structural weaknesses linked to cross-border enforcement and intelligence sharing.

The reforms also place significant emphasis on accessibility and passenger equality. Ministers said the Bill would seek to remove barriers faced by disabled passengers and improve consistency in service provision across England.

Government statistics referenced in the briefing documents show taxis and PHVs continue to play a critical role for passengers with limited transport alternatives. People with mobility difficulties make almost 70 percent more taxi and PHV trips than those without mobility difficulties. Women make around 25 percent more taxi and PHV journeys than men, while households in the lowest income quintile make approximately 50 percent more taxi and PHV trips than higher income households.

The Government also highlighted the sector’s growing scale and economic importance. As of 1 April 2024, England had approximately 313,000 licensed vehicles and 381,100 licensed drivers, continuing a long-term growth trend.

Officials said around 52 percent of all taxi and PHV journeys support economic activity, education or essential services, reinforcing the sector’s importance to local economies, shift workers, school transport provision and night-time economies.

Industry stakeholders are expected to scrutinise how the proposed reforms affect operational costs, local licensing autonomy and the role of app-based operators. Some local authorities and trade groups have previously called for tighter controls on cross-border hiring, while operators have warned against reforms that could restrict flexibility or create excessive administrative burdens.

The Government has framed the draft Bill as a balance between supporting innovation and strengthening regulation. Ministers said the legislation would help support a “thriving, professional sector” while improving public confidence in passenger safety standards.

The Law Commission previously warned that the legislative framework governing taxis and PHVs had become excessively complex and restrictive in some areas while failing to provide sufficient protections in others. The Local Government Association has also repeatedly called for comprehensive reform to create a licensing system fit for modern transport operations.

The draft Bill will extend to England and Wales but apply only in England. The Government said pre-legislative scrutiny will allow stakeholders across the taxi and PHV sector to provide evidence before legislation progresses further through Parliament.

Transport Committee Chair Ruth Cadbury said: "As the Transport Committee concludes its inquiry into the licensing of taxis and private hire vehicles, it’s encouraging to hear the Government taking serious action in the King's Speech with a draft Taxi and Private Hire Vehicle Bill.

"The move to introduce a national database of all licensed taxis and hire vehicles is very welcome – not least as it reflects the weight of the evidence that we have heard since we started our inquiry last year. Efforts to modernise the legal framework, strengthen enforcement and improve information-sharing all echo themes of our inquiry, and we will look forward to taking a closer look when the draft bill is published.”

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