‘KEY CONCERN REMAINS’: Government faces extreme pressure over taxi and private hire reform in Lords Devolution Bill debate
- Perry Richardson
- 1 hour ago
- 3 min read
Concerns over taxi and private hire regulation took centre stage during the House of Lords’ Second Reading of the English Devolution and Community Empowerment Bill, with peers from across the chamber urging the Government to act decisively on long-standing safety and enforcement issues affecting operators, licensing authorities and passengers.
The Bill introduces a new power for the Secretary of State to set national minimum standards for taxi and private hire vehicle (PHV) driver licensing. Ministers say this will tackle inconsistencies across England and respond directly to safeguarding worries highlighted in recent national audits.
Baroness Taylor of Stevenage, leading the Bill for the Government, told peers that the current regime creates “inconsistent standards across the country and the practice of ‘out-of-area’ working,” adding that “out-of-area working creates concerns in some authorities about the safeguarding standards applied to some of the drivers operating in their area.”
Baroness Taylor confirmed that the Bill “creates a power for the Secretary of State to set national minimum standards for the licensing of drivers of taxis and private hire vehicles,” arguing that this would help achieve “consistency across licensing authorities.”
Peers warn that out-of-area licensing remains a safeguarding risk as ministers promise new national minimum standards
Despite the move, peers stressed that minimum standards alone will not resolve the market distortions and enforcement gaps caused by cross-border working. Several highlighted the rapid growth in drivers licensed in one authority but operating almost entirely in another, a practice they say undermines local oversight, community confidence and passenger safety.
Lord Goddard of Stockport described Greater Manchester’s experience as “of great concern,” stating that “there are more private-hire drivers from Wolverhampton working in Greater Manchester than work in Wolverhampton itself, and that cannot be right.” His remarks reflected frustration among combined authorities unable to enforce standards on drivers they do not licence.
Liberal Democrat transport spokesperson Baroness Pidgeon echoed those concerns, warning that the out-of-area loophole is now “a huge safeguarding issue.”
She told the House that Manchester’s situation, where “49% of drivers are currently licensed in Wolverhampton”, left the city unable to regulate standards or carry out inspections on vehicles operating locally. She urged ministers to go further than minimum standards and work with peers to “close this dangerous safeguarding gap.”
Her intervention referenced the recommendations of the National Audit on Group-based Child Sexual Exploitation and Abuse, led by Baroness Casey of Blackstock, which explicitly called for urgent government action to halt out-of-area operations. The Government accepted those findings earlier this year, but peers noted that the Bill, as drafted, does not yet implement the core recommendation to prohibit the practice.
Labour’s Lord Bradley reinforced the point, cautioning that without clear measures to address out-of-area operations the Government risks missing a critical opportunity to strengthen public protection. He welcomed the new national standards power but said its effectiveness would depend on compliance mechanisms and additional action on cross-border enforcement.
“A key concern remains,” he said, “that out-of-area operations remain unaddressed.” He reminded the House that Casey had urged ministers to “take immediate action to put a stop to out-of-area taxis” and pressed the Government to clarify how its proposals meet that test.
Peers also revisited the wider licensing challenges that underpin the sector. Lord Borwick, a long-time industry voice, criticised the decades-long delay in implementing provisions allowing government to mandate wheelchair accessibility in taxis. Citing the Disability Discrimination Act 1995 and the Equality Act 2010, he described the failure to commence regulations as “a shameful history,” urging ministers to fulfil commitments made “30 years ago” to ensure disabled passengers can travel safely and consistently.
Additional concerns were raised regarding guide dog refusals. Baroness McIntosh of Pickering highlighted data showing that “about 58% of guide dog owners are reportedly turned away,” despite such refusals being a criminal offence. She asked the Government to use the Bill to tighten compliance expectations and improve driver awareness as part of a modernised licensing framework.
The debate demonstrated rare unity across political lines: while peers differed sharply on the wider architecture of devolution and local government reform, they agreed that taxi and PHV regulation requires firmer national direction and better tools for local enforcement. For many, the Bill’s new standards power is only the starting point.
As the legislation moves to Committee Stage, the industry can expect detailed scrutiny of how minimum standards will be set, enforced and integrated with existing local regimes; whether “licence where you operate” provisions are needed; and how local authorities will secure the regulatory visibility they currently lack.
With safety, competition and compliance issues intensifying across the sector, the Lords made clear that meaningful reform will be judged not on structural promises but on whether communities, passengers and operators finally see a system that is coherent, predictable and enforceable.
