Institute of Licensing warns DfT shift to larger Local Transport Authority taxi licensing model may not deliver the required outcomes
- Perry Richardson
- 2 days ago
- 2 min read
Updated: 18 hours ago
The Institute of Licensing (IoL) has highlighted concerns around Government proposals to transfer taxi and private hire vehicle licensing powers from local councils to Local Transport Authorities, warning the move could undermine public safety and destabilise existing regulatory systems.
In its formal response to a consultation issued by the Department for Transport, the IoL said the plans form part of the wider English devolution agenda but are not supported by sufficient evidence to justify such a significant structural change.
The consultation suggests that consolidating licensing responsibilities within LTAs could reduce cross-border working, improve consistency and strengthen enforcement. However, the IoL argues the proposals are disruptive and impractical, with little indication they would achieve the intended outcomes.
A central concern raised by the IoL is that LTAs are not regulatory bodies and currently lack the systems, governance frameworks and operational expertise needed to manage a complex public protection function. It warned that new authorities would be required to build licensing regimes from the ground up, including specialist staffing, compliance functions and committee oversight structures, leading to increased costs without clear operational gains.
Institute of Licensing says shift to transport authorities lacks evidence and could weaken enforcement capability
The organisation also rejected claims that larger licensing areas would reduce out-of-area working. It stated that cross-border activity already takes place on a scale that exceeds any proposed LTA boundaries, meaning structural reform alone would not address the issue. Instead, the IoL pointed to national standards and enhanced enforcement powers, which are already under development, as a more effective solution.
The response highlighted broader implications for council services, noting that most local authorities rely on multi-disciplinary licensing teams. Removing taxi licensing functions, the IoL warned, could significantly weaken capacity across other regulatory areas including alcohol, entertainment, gambling and animal welfare.
Concerns were also raised over timing, with local government in England already undergoing reorganisation. The IoL said introducing LTA-based licensing structures alongside these changes risks creating duplication, governance gaps and confusion across the regulatory landscape.
Emphasising the role of taxis in supporting local economies and communities, particularly in rural areas and the night-time economy, the IoL said councils are better placed to respond to local risks and maintain close working relationships with police and community safety partners.
The body also referenced previous work by the Welsh Government, which explored a similar model in 2019 but did not proceed due to concerns around safety and the loss of local oversight.
While opposing the proposed shift to LTAs, the IoL said reform of the sector remains necessary. It called for the introduction of national suitability criteria for drivers, consistent vehicle and operator standards, mandatory in-vehicle CCTV, improved data sharing between police and licensing authorities, and the creation of a national licensing register.
