How Wolverhampton became the UK’s largest taxi licensing authority for out-of-area drivers

Wolverhampton City Council has become the focal point of debate around cross-border licensing in the taxi and private hire sector. The authority now issues the overwhelming majority of its licences to drivers who live and work outside its own boundaries, raising questions about how the current system operates.

Figures show that 96% of all taxi and PHV licences granted by Wolverhampton are held by drivers who do not live in the city. In Greater Manchester alone, a recent Freedom of Information request revealed more than 9,000 drivers are licensed by Wolverhampton despite residing in that region.

The reason behind this growth lies in how councils set their own conditions within the national framework. Wolverhampton has built a reputation for processing applications quickly and offering more flexible conditions compared with other areas. While many local authorities have been historically criticised for long delays and inconsistent administration, Wolverhampton had long been viewed by drivers as efficient and straightforward.

This has led to a situation where drivers apply for a Wolverhampton licence and then work in cities hundreds of miles away. Current legislation allows this practice, as licences issued by any English authority are valid nationwide. The council itself has defended its approach, arguing that its standards meet all national requirements and that it is simply responding to high demand, which to be fair, is totally correct.

Critics in the industry say the model undermines local councils. However, licensing officers in places such as Manchester or Liverpool do have powers to prosecute an offender. City of Wolverhampton Council would then review a licence following any successful prosecution.

The growth of ride-hailing platforms has also played a part. Operators such as Uber and Bolt can make use of Wolverhampton-licensed drivers to expand quickly in cities without relying on local licensing systems. This has further increased the volume of applications being channelled through the West Midlands authority.

The practice has prompted calls from trade groups and local authorities for reform. Many argue that while Wolverhampton has not broken any rules, the wider system has created a patchwork of standards that confuses passengers and erodes public confidence.

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The Transport Committee’s current inquiry into licensing and regulation is expected to revisit the issue directly. MPs will consider whether councils should continue to operate independently or whether national baseline standards and shared enforcement powers are needed to restore balance.

For now, Wolverhampton remains the country’s largest issuer of PHV licences outside of London, despite most of those drivers never operating in the city itself.