Government to finally ‘CLOSE’ out-of-town private hire vehicle licensing loophole highlighted in damning Casey report
- Perry Richardson
- Jun 18
- 2 min read
The Secretary of State for the Home Department, Yvette Cooper, has confirmed that the Government is planning legal reforms to close gaps in taxi licensing regulation exposed in the recent National Audit on Group-Based Child Sexual Exploitation and Abuse.
The audit, conducted by Baroness Casey, identified that some local authorities go beyond statutory taxi licensing guidance to help protect vulnerable children. However, the effort is weakened by a legal loophole known as Cross Border Hiring, that allows drivers to be licensed in one area and operate in another with fewer checks. This inconsistency undermines safeguards put in place by local authorities responding to known exploitation risks.
In the House of Commons, Andrew Pakes MP (Labour/Co-operative, Peterborough) raised concerns about this issue, citing the impact on law-abiding drivers and the safety of passengers in areas like Peterborough. He called for urgent national action to establish uniform standards.
In response, Cooper confirmed that the Department for Transport is examining the issue with a view to reforming the law. She acknowledged that while some councils have raised their licensing standards, those efforts are being undercut by less rigorous checks in other parts of the country. “We are looking to take forward reforms to the law. The Transport Secretary is looking at exactly this issue to make sure that we find a way to close the loophole,” she said.
Baroness Casey’s report recommended that the Department for Transport “should close this loophole immediately and introduce more rigorous standards” as part of a national effort to reduce risk to children and improve the integrity of taxi services involved in school and care-related transport.
The Government’s response signals a shift toward addressing longstanding calls for a level playing field in taxi licensing. However, specific timelines or draft legislation have yet to be announced.
Cooper said: “I welcome my hon. Friend’s point. As he will know, many local authorities across the country have worked to ensure that they raise standards and checks in their licensing arrangements, particularly those in areas where there have been serious problems and criminal cases. However, those checks and safeguards can end up being undermined by the licensing of taxis in other areas that do not have such checks, so we are looking to take forward reforms to the law. The Transport Sevretary is looking at exactly this issue to make sure that we find a way to close the loophole.”
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