FULL DETAILS: Transport Minister tells inquiry existing taxi laws are “archaic and fragmented” as MPs probe licensing reforms

The Government has set out plans for the most significant overhaul of taxi and private hire vehicle licensing in decades, with ministers acknowledging that the current legal framework is outdated and struggling to cope with modern app-based operating models.

Giving oral evidence to the Transport Committee, Lilian Greenwood said the legislation governing taxis and private hire vehicles is “archaic and fragmented” and no longer fit for purpose, despite the sector continuing to function. She told MPs that the industry has survived “despite the legislation rather than because of it” and confirmed that comprehensive reform remains a clear ambition of the Department for Transport.

The evidence session marked the final hearing in the Committee’s inquiry into taxi and private hire licensing, which has examined safety, safeguarding, accessibility, out-of-area working and enforcement. Greenwood’s appearance came soon after the Government launched a consultation on introducing national minimum standards and changing which tier of local government is responsible for licensing.

Opening her evidence, Greenwood said the aim was to ensure passengers could be “confident [services] are safe, accessible, available and affordable, whether that is in a taxi or a private hire vehicle”. She said the greatest strain on regulation had emerged over the past 10 to 15 years, driven by new technology and changing passenger behaviour, alongside a sharp increase in private hire vehicles compared with traditional taxis.

She also referenced historic safeguarding failures highlighted by the Casey report, stressing that while the abuses involved a “very small number” of drivers, they exposed weaknesses in licensing systems that could not be ignored. “Although, in any normal sense of the word, taxis and private hire vehicles are now safe, we cannot be complacent,” Greenwood told the Committee. “There is still much that needs to change and our focus is particularly on safety and accessibility.”

National minimum standards as first step

Greenwood described national minimum standards as the Government’s immediate priority, enabled through powers proposed in the English Devolution and Community Empowerment Bill. These standards would apply across England and are intended to raise consistency while allowing some local discretion.

She said there were areas where standards would be both a minimum and a maximum, particularly around safeguarding. “For example, when it comes to safeguarding, we want every local authority to require PHV and taxi drivers to have an enhanced DBS check and to be checked against the adults and children’s barring lists,” she said. “For me, that is a minimum; it is also a maximum. There is no stronger regulation that you could have on that.”

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However, Greenwood resisted calls for rigid absolute standards across all areas, arguing that this could undermine devolution and ignore local conditions. She suggested that issues such as air quality might justify stricter local requirements in urban areas, while rural authorities could reasonably take a different approach.

The Minister acknowledged concerns that minimum standards alone could fail to address “licensing shopping”, where drivers seek licences from authorities perceived as cheaper or faster. She argued that consistency would reduce incentives to do so, citing data showing that while all licensing authorities claim to require high safeguarding standards, only around two-thirds mandate disability equality training. “That is unacceptable,” Greenwood said. “You should know that when you use one of these vehicles, the people who are providing that service know what is appropriate in order to meet the needs of disabled people”.

English language, vehicle age and emissions

Greenwood confirmed that English language requirements would form part of the national framework, though she said the Department was still considering how best to assess proficiency. “It is important for communicating with passengers and for understanding safety information,” she said. “In answer to your question, I am pretty clear that English should be a requirement.”

On vehicle standards, she acknowledged inconsistencies across the country, particularly around vehicle age limits. Greenwood questioned the logic of authorities that restrict the age of vehicles at first licensing but allow the same vehicles to be relicensed for many years thereafter. Department for Transport officials said this variability was one of the strongest drivers of out-of-area licensing.

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However, Greenwood warned that raising standards inevitably brings higher costs, with consequences for both drivers and passengers. “We know that a lot of people rely on taxis and private hire vehicles, particularly people who perhaps cannot afford a car of their own, or disabled people who would not be able to drive or even use public transport,” she said. “I do not want to make it unaffordable for them to use taxis and PHVs.”

Out-of-area working and Wolverhampton

Much of the session focused on out-of-area working, particularly the role of City of Wolverhampton Council, which has become a dominant licensing authority for private hire drivers nationwide. Greenwood said she had met the council recently and rejected suggestions that it deliberately operates lower standards.

“Frankly, it was rather reluctant about the role it had ended up with,” she said. “I do not think it was ever the intention to become the go-to licensing authority, and it does not have any choice. If someone turns up at Wolverhampton, asks to be licensed and meets the standards, they will be licensed there.”

She attributed Wolverhampton’s popularity largely to its investment in digital systems and efficiency, combined with significant variation in licence fees nationally, which range from around £150 to £300. Greenwood accepted that the situation was not ideal and said national minimum standards and moving licensing responsibilities to fewer, larger authorities would help, though she cautioned these measures were “not a panacea”.

Shifting licensing to transport authorities

The Government is consulting on transferring licensing responsibilities from district and unitary councils to around 70 local transport authorities. Greenwood said this would deliver greater consistency, efficiency and alignment with wider transport planning.

“Taxis and private hire vehicles would be seen as part of the overall transport provision and network planning,” she said, arguing that the current system of 263 licensing authorities makes it harder to address cross-boundary issues.

She acknowledged concerns about reduced local knowledge but pointed out that local government reorganisation was already changing boundaries in many areas. Greenwood suggested that licensing at a strategic level could better reflect real-world travel patterns, particularly in large urban regions.

Enforcement, CCTV and national databases

Greenwood said enforcement effectiveness varies widely and is undermined by the fact that authorities can usually only act against drivers they have licensed. She supported stronger powers in future legislation, including the ability for officers to stop vehicles, issue fixed penalty notices and enforce against any licensed vehicle operating in their area, echoing earlier Law Commission recommendations.

On in-vehicle CCTV, Greenwood described the issue as “quite contentious” but said it should be seriously considered as part of national standards. “There is an argument that CCTV should be a national requirement because of the potential safety it provides for passengers, but also the potential safety it provides for drivers,” she said, while acknowledging concerns about cost, privacy and data protection.

She also confirmed that work is under way on a national licensing database covering all drivers, vehicles and operators. Officials said funding has been allocated for discovery work and initial development, with the system potentially allowing operators and enforcement bodies to verify licensing status more easily and improve information sharing with police.

Accessibility and wheelchair provision

Accessibility featured prominently, with Greenwood describing current refusal rates for guide dog users as “appalling” and evidence that enforcement is not working as it should. She said disability equality training would be a core element of national minimum standards and stressed that discrimination against disabled passengers is “simply unacceptable”.

On wheelchair accessible vehicles, Greenwood accepted that provision remains inadequate, particularly within private hire fleets. She acknowledged the high cost of such vehicles and said solutions would likely require a mix of incentives and regulation. “We want there to be sufficient wheelchair accessible vehicles that serve the needs of disabled people who want them,” she said, while conceding there was “not a really easy way” to achieve that balance.

Timescales and next steps

Pressed on when the industry might see tangible change, Greenwood said the Government intends to act quickly once legislative powers are secured. Consultation on licensing responsibility closes in early April, while work on national minimum standards and broader reform is expected to accelerate through the spring.

“It is time that there was action, and we are keen to do that,” Greenwood told MPs. Asked how long the sector would have to wait, she replied: “Hopefully, not very many.”

The Transport Committee is expected to publish its recommendations later this year, which will inform the Government’s next steps on what could become the most far-reaching reform of taxi and private hire regulation since the 1970s.