‘IT’S TIME TFL GETS SERIOUS’: Create cap on private hire vehicles and support the taxi trade, says London Assembly
- Perry Richardson
- Oct 6
- 2 min read
The Transport for London (TfL) Taxi and Private Hire Action Plan has been labelled a missed opportunity, with the London Assembly Transport Committee calling for stronger measures to protect drivers and improve safety.
Following an investigation into the plan, the Committee concluded that a lack of engagement with the trade has left key issues unresolved. In letters sent to both the Government and TfL, Assembly Members have called for legislative and financial reforms designed to stabilise the capital’s taxi and private hire vehicle (PHV) sectors.
Central to the recommendations is a proposed cap on the number of PHVs operating in London. The Committee argues that without such limits, congestion and driver oversupply will continue to harm earnings and working conditions. They have urged the Government to grant TfL powers to set and enforce a cap before the end of the 2025–26 Parliamentary session.
The report also pushes for an end to cross-border hiring, which allows drivers licensed by other authorities to operate in the capital without meeting TfL’s standards. Members say this practice undermines safety and fairness within the London market.
Safety on the road remains a key focus. The Committee wants TfL to ban operator systems that require drivers to read or interact with their phones while driving, calling for this to be made a condition of licensing by the end of 2025.
To support the transition to cleaner vehicles, the Committee has called on the Government to extend the plug-in taxi grant beyond April 2026 and restore the original £7,500 rate per vehicle. It is also urging VAT exemptions for taxis and wheelchair-accessible private hire vehicles by the end of 2025.
The letters recommend that TfL develop new financial support mechanisms for the taxi trade, including exploring the use of the Mayor’s Green Finance Fund. Such support, they say, is vital to help drivers meet the costs of switching to electric vehicles and to maintain an accessible service for passengers.
The London Assembly Transport Committee’s intervention adds growing pressure on both TfL and central Government to take more decisive action. Many within the industry have long argued that without structural reform, London’s taxi and PHV sectors risk becoming unsustainable.
Elly Baker AM, Chair of the London Assembly Transport Committee, said: “The Committee is concerned about the future of the taxi and private hire industry in London, and TfL’s lack of serious engagement with drivers, their representatives, and this Committee only adds to our fears.
“TfL says that it wants to make taxi and private hire driving an attractive career for current and future drivers, but the evidence we have heard says the Plan is failing on those grounds.
“It is time that TfL gets serious about protecting this industry, drivers, and all the Londoners who rely on taxis and minicabs to get around – starting with a cap on private hire vehicle numbers.
“Our recommendations can make a big impact to the success of this Plan, but TfL needs to start listening to drivers to sustain progress in the years to come.”
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