Government advances taxi and private hire enforcement reforms in latest Commons Devolution Bill debate
- Perry Richardson
- 11 minutes ago
- 5 min read
The Government has now set out significant new enforcement measures for the taxi and private hire sector as part of the English Devolution and Community Empowerment Bill, with ministers confirming expanded powers for local authorities during a House of Commons debate on 21 April.
The proposed reforms, returning back to the House of Commons after being approved by the House of Lords, include provisions allowing licensing authorities to immediately suspend taxi and private hire vehicle (PHV) licences issued by other councils when drivers are operating in their area. The move is intended to address long-standing concerns around cross-border enforcement and public safety, particularly in urban areas where out-of-area working is widespread.
Opening the discussion on the sector, Miatta Fahnbulleh, Minister for Housing, Communities and Local Government, framed the changes as a targeted intervention to close regulatory gaps while maintaining confidence in the majority of drivers. She told MPs:“While we agree with Baroness Casey’s view… that in the vast Majority of these trades the drivers, vehicle proprietors or private hire vehicle operators are hard-working and law-abiding people who take pride in their work, it is right that enforcement powers are available to prevent those few who seek to abuse their position of trust and pose a risk to the public.”
The Minister outlined the core of the reforms, stating:“Lords amendments 43 to 79 provide that any licensing authority may temporarily suspend with immediate effect any licence, whether issued by that authority or by any other in England being exercised in its area, where necessary to address a risk to public safety.”
Ministers defend new cross-border suspension powers as MPs raise concerns over out-of-area licensing, safety standards and funding pressures
This provision represents a huge shift in regulatory practice. Under the current framework, licensing authorities are generally limited in their ability to act against drivers licensed elsewhere, even if those drivers are operating extensively within their area. The new powers would allow immediate intervention where safety concerns are identified, without waiting for action from the issuing authority.
Fahnbulleh confirmed that the measures would be supported by additional safeguards and secondary legislation. These include requirements around the duration of suspensions, obligations on authorities issuing licences, and the introduction of an appeals process. She said:“We acknowledge that suspension powers may impact licensees’ livelihoods, and they can be used only when the immediate suspension of the licence is judged necessary in the interests of public safety.”
She added that provisions would also allow for compensation in certain cases, and that further detail, including the format of suspension notices, would be set out in secondary legislation.
Alongside enforcement powers, the Government confirmed that the Bill would strengthen the application of national standards and introduce a duty on licensing authorities to share information on driver conduct. Fahnbulleh said:“The Lords amendments also support the effective application of national standards, placing a duty on all authorities in England to report breaches of them to the authority that issued the relevant licence.”
The measures come amid sustained political and industry concern about the growth of out-of-area licensing, where drivers obtain licences from authorities with lower costs or faster processing times but operate predominantly in different regions. The practice has been particularly prominent in large metropolitan areas, including Greater Manchester and parts of the south coast.
Labour MP Elsie Blundell used her contribution to highlight both the progress and the limitations of the proposed reforms. She welcomed the Government’s approach to enforcement but warned that structural issues within the licensing system remain unresolved.
“I welcome the steps that the Government, in the form of Lords amendments, have taken towards enabling licensing authorities to take enforcement action against a PHV licensed out of area and to temporarily suspend licences,” she said.
However, Blundell stressed that the prevalence of cross-border working would continue to challenge regulators. She told MPs:“Although I support this step and the Government’s work on national standards, we must acknowledge that the system at large will still be characterised by out-of-area operations.”
Her remarks reflect ongoing calls within the sector for more fundamental reform, including potential restrictions on where drivers can operate or requirements to be licensed locally. Blundell referenced earlier proposals aimed at tightening these rules, noting:“I previously tabled an Amendment… which I believe would have empowered mayoral strategic authorities to require private hire vehicle drivers to licence within their region.”
The MP also raised concerns about the limits of information sharing and enforcement effectiveness, particularly where local knowledge is critical. She said:“Even now that there will be a clearer line of communication between licensing authorities, a lack of local knowledge, context and history will mean that decisions could still be made in a vacuum.”
Blundell pointed to disparities between licensing authorities, citing Wolverhampton and Sefton as examples of councils issuing licences to drivers operating elsewhere. She argued that local enforcement is inherently more effective when carried out by authorities familiar with the communities they serve.
Funding pressures linked to out-of-area licensing were also highlighted as a key operational challenge. Blundell told the House:“As we know, enforcement is generally funded by licensing revenue. However, in Greater Manchester, around 50% of private hire vehicles are licensed elsewhere to avoid our rigorous standards and fees, thus limiting the revenue that could be used for enforcement.”
This issue has been widely cited by local authorities, which argue that they bear the burden of enforcement activity without receiving the corresponding licensing income.
Similar concerns were raised by Labour MP Amanda Martin, who focused on the practical implications for passenger safety and regulatory consistency. She described the current system as leaving councils unable to act quickly when risks arise.
“The gap in enforcement powers that exists when a vehicle is licensed in one authority but operates in another is real and a long-standing concern for my residents,” Martin said.
She added:“Authorities have too often found themselves powerless to act swiftly when a driver poses a risk to public safety, simply because the licence has been issued elsewhere.”
Martin also pointed to differences in local safety requirements, including the use of CCTV and dashcams, which can vary significantly between licensing authorities. She questioned whether a more standardised national framework might be required to ensure consistency across the sector.
“To be clear, I realise that Wolverhampton carries out robust checks… but authorities have too often found themselves powerless,” she said, acknowledging the complexity of balancing flexibility with uniform standards.
The debate reflects broader tensions within the taxi and private hire industry, where localised licensing systems operate within a national market increasingly shaped by app-based platforms and cross-border working patterns. While the Government’s proposals aim to strengthen enforcement without fundamentally restructuring the licensing model, several MPs indicated that further changes will be needed.
In her closing remarks, Fahnbulleh acknowledged that the current system requires deeper reform beyond the measures contained in the Bill. She said:“We completely agree… that the system is not fit for purpose… These are important first steps.”
She added:“Having national standards means we can ensure consistency of approach across the country and, critically, we are strengthening enforcement powers. However, we know that additional reforms must be put in place, and we are committed to bringing them forward.”
The Minister’s comments suggest that further legislative or regulatory action could follow, potentially addressing issues such as licensing harmonisation, local control, or restrictions on cross-border operations.
The English Devolution and Community Empowerment Bill passed a key Commons vote later in the session, with MPs backing the Government’s position by 291 votes to 154. While the division related to a separate Lords amendment, it allows the broader legislative package, including taxi and private hire provisions, to continue progressing through Parliament.
As the Bill moves forward, attention is likely to shift to how the new powers will be implemented in practice and whether they are sufficient to address the structural challenges identified by MPs across parties. The Government’s commitment to further reform suggests that the taxi and private hire sector will remain a focus of policy development in the coming months.
