CROSS-BORDER PROPOSALS: Government sets out consultation on cutting taxi licensing bodies to curb out-of-area working
- Perry Richardson
- 38 minutes ago
- 2 min read
The Government has launched a public consultation on sweeping reforms to taxi and private hire vehicle licensing aimed at reducing out-of-area working and strengthening passenger safety, particularly for women and girls.
Under proposals published by the Department for Transport (DfT), responsibility for issuing taxi and PHV licences would be consolidated from the current 263 bodies to around 70 local transport authorities. These LTAs already oversee local transport planning and would take on taxi licensing functions under the new model.
The change is intended to simplify a fragmented licensing system that ministers say has hindered effective enforcement and allowed drivers to exploit differences in local standards. Out-of-area working occurs when drivers licensed in one council area operate predominantly in another, often choosing authorities perceived to have less stringent checks or lower costs.
Officials argue that reducing the number of licensing authorities would significantly cut the number of administrative boundaries, limiting opportunities for regulatory arbitrage and improving oversight. The Department for Transport cited Greater Manchester as an example, where 10 separate licensing authorities currently operate. Under the proposals, this would be replaced by a single authority covering the whole area.
DfT proposals would reduce licensing authorities from 263 to around 70, giving ministers new powers to set national minimum standards for taxis and private hire vehicles
The consultation forms part of the Government’s response to the National Audit on Group-Based Child Sexual Exploitation and Abuse led by Baroness Casey. That review highlighted weaknesses in taxi and PHV licensing, including out-of-area working, and called for tougher statutory standards and clearer accountability for local authorities.
Alongside restructuring licensing bodies, the proposals would give the Transport Secretary powers to introduce national minimum standards for taxi and PHV licensing. These standards would apply across England, ensuring consistent requirements for driver vetting, safeguarding checks and vehicle compliance regardless of where a licence is issued.
Ministers say national standards would address long-standing concerns from police, councils and passenger safety groups that inconsistent local rules undermine public confidence. The measures would also apply to operators working across multiple areas, including those serving large urban centres such as London, regulated separately by Transport for London (TfL).
The public consultation will run for 12 weeks and is available via the Department for Transport website. Responses will inform whether the Government proceeds with legislation to restructure licensing authorities and implement national standards, marking one of the most significant overhauls of taxi and PHV regulation in decades.
Local Transport Minister Lilian Greenwood said: “Passenger safety is at the heart of everything we do. These proposals, combined with the introduction of national minimum standards, are important next steps to making taxis and private hire vehicles as safe as possible.
“By moving licensing to all Local Transport Authorities, we're encouraging greater consistency and stronger enforcement across the country.”
A spokesperson for The Licensed Private Hire Car Association said: “We are delighted that the government is consulting on making all Local Transport Authorities responsible for taxi and private hire vehicle licensing.
“Reducing the number of licensing authorities should enable licensing efficiencies and consistency of standards nationally for Taxis and Private Hire Vehicles, which in turn will improve safety for the travelling public.”
More reaction to follow…
