OUT-OF-AREA WORKING: Government backs licensing taxi and private hire drivers where they actually work, says Transport Secretary
- Perry Richardson
- Jun 14
- 3 min read
The Government has given its strongest indication yet that it wants taxi and private hire drivers to be licensed in the areas where they actually work, as ministers prepare to bring forward a new Taxi and Private Hire Vehicle Bill.
Speaking in the House of Commons on Thursday, Transport Secretary Heidi Alexander said: “I believe that drivers and operators should be licensed where they intend to provide services.”
The statement came in response to a question from Transport Committee Chair Ruth Cadbury, who asked what action the Government was taking to restrict out-of-area working by taxis and private hire vehicles.
Alexander’s comments are significant because they align closely with concerns raised by MPs, local authorities and sections of the taxi industry about drivers being licensed hundreds of miles away from the areas where they predominantly operate.
The issue was a major focus of the Transport Committee’s recently published inquiry into taxi and private hire licensing, which found that extensive out-of-area working has undermined public confidence, weakened enforcement and encouraged drivers to seek licences from authorities perceived to offer cheaper or less demanding application processes. The Committee urged the Government to develop a plan to curb the practice while recognising that an outright ban would be impractical.
While expressing her preference for drivers to be licensed where they work, Alexander suggested ministers would take a balanced approach to reform.
She told MPs: “We want to look at the issue of out-of-area working holistically to make sure that we do not reduce the availability of private hire services for everyone, while also making sure that we have very high standards in place.”
The Transport Secretary also highlighted reforms already underway. She said the Government had legislated to establish national standards and to reform enforcement arrangements affecting private hire drivers and vehicles regardless of where they are licensed. According to Alexander, those standards will provide “a robust framework” to help ensure passenger safety wherever people live, work or travel.
The comments come as the Government prepares to publish a draft Taxi and Private Hire Vehicle Bill for pre-legislative scrutiny during the current parliamentary session. Alexander invited the Transport Committee to contribute its expertise to the process.
The proposed legislation follows recommendations made in the Committee’s report Raising the standard: licensing of taxis and private hire vehicles, which concluded that modernising the licensing framework is essential and called for measures to address out-of-area working, strengthen enforcement powers and improve consistency across England.
Alexander said in full: “My hon. Friend raises an important issue. She will be aware that we have already legislated to establish national standards and to reform the way that enforcement action can be taken against private hire drivers and vehicles, no matter where they are licensed.
“Those standards will provide a robust framework to make sure that people are safe wherever they live, work or travel. I believe that drivers and operators should be licensed where they intend to provide services. We are bringing forward a draft taxi and private hire vehicle Bill for pre-legislative scrutiny in this Session, and I would be grateful for the expertise of my hon. Friend’s Committee in looking at that.
“We want to look at the issue of out-of-area working holistically to make sure that we do not reduce the availability of private hire services for everyone, while also making sure that we have very high standards in place.”
