Government outlines core ‘push and pull’ factors driving private hire licence applicants to out-of-area authorities
- Perry Richardson
- 3 hours ago
- 3 min read
An MP and transport minister discussed the pressures pushing taxi and private hire applicants away from their home authorities and the incentives pulling them toward areas with more favourable licensing regimes.
The explanation followed a parliamentary question from Jim McMahon, Labour MP for Oldham West, Chadderton and Royton, who pressed the Department for Transport on what assessment it had made of these forces, citing movement toward authorities such as Wolverhampton Council.
Responding for the Government, Minister Lilian Greenwood said operators and drivers repeatedly identify the same combination of factors at play. On the push side, applicants report being deterred by slower processing times, higher fees and stricter or more complex administrative requirements in their home authorities. These conditions create a practical and financial burden that encourages applicants to look elsewhere.
Pull factors, by contrast, centre on authorities that offer quicker turnaround times, lower upfront costs and smoother administrative pathways. Councils perceived as more predictable or efficient in their handling of applications draw significant numbers of applicants who ultimately intend to work in entirely different parts of the country.
DfT points to uneven licensing rules, variable costs and inconsistent processing speeds as the main forces steering drivers toward councils such as Wolverhampton.
Greenwood stated that although safety requirements are broadly aligned across England, such as the universal need for enhanced DBS and barred lists checks, the surrounding framework varies significantly between authorities. It is this variability, she said, that continues to fuel the steady flow of out of area licensing.
Home authorities lose oversight of drivers who end up working within their boundaries despite being licensed elsewhere, while receiving none of the associated licensing income. Industry groups argue the current system creates enforcement challenges and uneven competitive conditions for local drivers adhering to their own authority’s standards.
The Government aims to target the root of these push and pull factors through the English Devolution and Community Empowerment Bill. If passed, it would allow ministers to introduce national minimum standards designed to eliminate the disparities that currently shape driver behaviour. Greenwood said the objective is to produce a consistent baseline that reduces the incentive to seek more accommodating licensing regimes.
Officials believe that aligning core licensing processes nationally would begin to neutralise both the pressures pushing drivers away from home authorities and the attractive conditions pulling them toward councils offering a faster or cheaper route to the trade.
Minister Greenwood said: “Ministers and officials regularly engage with the taxi and private hire vehicle sector. Differing licensing requirements, processing times and costs are often cited as reasons why licences are sought from authorities other than that in which the applicants intend to work.
“Though there is a high degree of consistency in requirements relating to safety, for example all licensing authorities in England require an enhanced Disclosure and Barring Service and barred lists check for drivers, the Government is taking action to ensure even greater consistency in licensing.
“The English Devolution and Community Empowerment Bill seeks to introduce powers to set national minimum standards for taxi and private hire vehicle licensing. If passed, national minimum standards would enable government to set robust standards for licensing across England, to keep vulnerable children and, indeed, all members of the public safe, wherever they live or travel. It would also help reduce the variability of licensing standards across the country, which is a significant factor in inducing out-of-area working.“
