INQUIRY EVIDENCE: Liverpool City Region detail why urgent taxi and PHV licensing reform is needed
- Perry Richardson
- Sep 22
- 2 min read
The Liverpool City Region’s local authorities, supported by the Police and Crime Commissioner, have set out detailed evidence to the Transport Committee on the need for wholesale reform of taxi and private hire licensing. Their submission highlights outdated legislation, uneven standards, and the impact of cross-border hiring as major issues holding the sector back.
The six local licensing authorities across the region already collaborate closely, sharing policies and working to common minimum standards. However, they argue this joint approach cannot replace legislative change. Much of the current law dates back to 1847 and 1976, and is described as no longer fit for the modern industry.
Authorities highlight safeguarding training, English language testing and disability awareness as areas where there is no national standard, leaving councils to devise their own requirements. This, they say, creates wide variation across the country. Some councils insist on in-person training with verified attendance, while others rely on basic online tick-box courses.
Cross-border hiring is identified as the single biggest problem. The submission calls for the practice to be removed from legislation and replaced with an “ABBA” model, where a private hire journey must start or end in the area where the driver, vehicle and operator are licensed. The current loophole, they argue, allows drivers to license themselves hundreds of miles away in cheaper or less rigorous areas, such as Wolverhampton, then return to work locally. This weakens safeguarding, strips local councils of licensing revenue, and causes public confusion when “out of town” vehicles collect passengers.
The impact of deregulation and competitive licensing has also undermined local standards. Liverpool City Region warns that local authorities are left to carry the costs of processing applications that have little chance of being approved, with no means of recovering expenses. They also stress the loss of taxi drivers as a “notifiable occupation” has made it harder for councils to access crucial police information on arrests and safeguarding concerns.
On future reforms, the authorities argue for clear national standards on training, mandatory conditions similar to the Licensing Act 2003, and a quality assurance framework to stop councils setting their own weaker requirements. They also recommend stronger oversight of digital ride-hailing platforms, pointing to concerns around faceless operations, consolidation of local operators, and reduced choice for passengers.
The submission further calls for improvements to the NR3S national register of revoked or refused licences, a new national complaints system, and consultation on the role of autonomous vehicles in taxi licensing, which they say has so far been absent.
While government proposals have suggested moving licensing to a combined authority level, Liverpool City Region says this would not fix the underlying problems. Instead, the priority must be tackling cross-border licensing at a national level, while allowing local areas to raise and align standards that reflect their own transport needs.
