‘GRANDFATHER’ RIGHTS TO GO: Peterborough taxi licensing overhaul could remove older vehicle rights and introduce operator financial checks

Peterborough City Council is set to consider a wide-ranging overhaul of its taxi and private hire licensing policy which could remove existing rights protecting older licensed vehicles and introduce financial checks for private hire operators.

The proposals are due before the council’s Licensing Committee on 10 September, with members being asked to approve a one-month statutory public consultation on a draft Taxi and Private Hire Policy covering 2026 to 2031. Drivers, operators, trade federation representatives, passengers and other stakeholders would be invited to respond before a final policy is considered.

One of the most significant changes for vehicle owners would be the proposed removal of acquired, or grandfather, rights currently applying to vehicles licensed before 26 July 2022. The council says the policy changes are likely to have a significant impact on the licensed trade, specifically identifying the removal of grandfather rights for older vehicles as one of the main areas affected.

The council also wants to revise vehicle age and emissions requirements as it looks to reduce the time petrol and diesel vehicles remain within the licensed fleet. The proposed approach would introduce incremental measures intended to encourage a transition towards hybrid and zero-emission vehicles ahead of 2040.

Under the proposals, zero-emission vehicles would be permitted to remain licensed up to a maximum age of 18 years. The existing maximum CO2 emissions limit would be removed, while the current ultra-low-emission vehicle category would be replaced by a broader hybrid category covering mild hybrids, full hybrids and plug-in hybrids.

Officials also want to review the list of vehicles approved for hackney carriage licensing. The stated aim is to provide drivers and proprietors with a wider selection of modern and affordable vehicles as the existing fleet ages, while seeking improvements in passenger comfort and vehicle reliability.

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Vehicle testing could also undergo a significant change. Members are being asked to approve exploration of replacing Peterborough’s existing MOT exemption testing arrangement with a Driver and Vehicle Standards Agency MOT test. Aragon would remain the council’s priority testing garage, but the authority could appoint a limited number of additional DVSA-authorised MOT testing centres.

The council says additional testing centres could increase capacity, give licence holders greater flexibility and improve appointment availability. It would also reduce the licensing system’s reliance on a single testing provider. A final decision between retaining Aragon as the sole appointed station and introducing additional approved centres has not yet been made.

Another proposal would remove the existing “critical failure” testing criteria, under which certain mechanical failures have to be repaired within one month. Council officers say the requirement has become unrealistic because of current vehicle parts availability.

Private hire operators would face increased scrutiny under another major element of the review. Robust financial checks are proposed for all new and renewal operator applications, with the council seeking evidence that businesses have sufficient financial capacity to deliver passenger transport contracts.

According to the committee report, the checks are also intended to provide safeguards against money laundering and organised crime risks before an operator licence is granted. The measure could therefore create additional compliance requirements for both existing operators renewing licences and businesses entering the Peterborough private hire market.

Safeguarding forms a central part of the wider review, with the council saying the revised policy responds to national developments in taxi and private hire regulation and recommendations following the Baroness Casey review. Peterborough intends to incorporate revisions recommended through the Department for Transport’s Statutory Taxi and Private Hire Vehicle Standards, which place particular emphasis on passenger safeguarding.

The council does not currently require CCTV to be fitted to licensed vehicles and the draft direction does not propose introducing a local mandatory CCTV requirement at this stage. Officials say the position could be reviewed if legislation, statutory guidance or national standards change, with any future national legal requirement expected to be incorporated into local licensing policy.

Licensed vehicles would continue to be required to display prescribed internal and external identification, with a proposed £100 fixed penalty for non-compliance. However, the authority proposes removing the requirement to display existing Part 1 and Part 2 notices inside vehicles because technical difficulties have prevented them being produced and alternative identification arrangements are available.

Peterborough’s existing taxi and private hire policy was adopted in June 2022. Council officers say changes to legislation, statutory standards and industry practice since then mean the framework now requires revision.

If the Licensing Committee agrees to consultation, responses will be considered before another report is brought back to members. The committee would then consider representations and any amendments before recommending a final policy to Full Council, which would determine adoption and the implementation date.

The proposals therefore remain subject to consultation and political approval. No implementation date for the new vehicle, operator or testing requirements has yet been set.