Leeds Council evidence submission to Transport Committee backs tighter local control and repeal of cross-border loophole
- Perry Richardson

- Sep 26
- 3 min read

Leeds City Council joined a large number of councils calling for major changes to taxi and private hire vehicle (PHV) licensing rules in England in its evidence provided to the Transport Select Committee.
As part of evidence provided for a Taxi and Private Hire Licensing inquiry, the council argues that current laws are failing to protect passenger safety, allow inconsistent enforcement, and leave councils powerless to regulate all vehicles operating in their area.
The council’s main concern is with the Deregulation Act 2015, which allows operators to subcontract bookings to other licensed operators anywhere in England. That means a job booked in Leeds can be carried out by a driver licensed hundreds of miles away, in a vehicle Leeds has no authority to inspect or regulate.
Leeds says this loophole creates “licence shopping”, where drivers choose to licence in areas with the fewest checks and lowest standards, but then work full-time in cities with higher requirements. The host councils are left with no enforcement powers over these drivers or vehicles.
The council is calling for the repeal of the subcontracting provision in the 2015 Act. If repealed, the local authority where the journey starts would regain control and accountability for all drivers and vehicles involved. This, it says, would restore public confidence and simplify enforcement.
If the law is not repealed, Leeds wants a new national requirement for all licensing authorities to enforce an Intended Use Policy. This would force licensed PHV drivers to work mainly in the area they are licensed, returning to their base after dropping off in another district. It would also make it easier to issue fines and act on non-compliance, provided new legislative powers are given to councils.
The council believes these steps are essential to prevent the erosion of local standards and ensure enforcement can be done effectively. It says complaints, safety checks and licence revocations are all undermined when drivers operate in areas with no local link or oversight.
Leeds also supports the introduction of national minimum licensing standards, but stresses these should only form a baseline. Councils must still be allowed to apply stricter local rules where needed. It warns that a “one size fits all” national or regional approach risks ignoring local safety concerns and service needs.
The council further sets out a range of improvements that would support higher safety, service and accessibility levels. These include:
Making the use of the national refusals and revocations register (NR3S) mandatory
Requiring all PHV app operators to include in-app emergency functions and passenger tracking
Enforcing more regular mechanical checks, especially for high-mileage and wheelchair-accessible vehicles
Introducing mandatory safeguarding and disability training for all licensed drivers
Requiring English language and local knowledge tests in all licensing areas
Supporting council enforcement with integrated technology systems and mandatory CCTV in vehicles.
On regional licensing, the council says it may work in some areas but is not a universal solution. It argues that local democratic accountability is lost if decisions are made by regional bodies, and that licence shopping would simply move to a regional scale.
It also notes that regional licensing does nothing to fix the subcontracting loophole in the Deregulation Act, which it sees as the core problem.
Looking ahead, Leeds outlines how autonomous vehicles could be licensed in the future. It says councils must assess each case carefully, with checks on safety standards, fail-safes, cybersecurity, insurance and public engagement. It warns that automated services must not bypass existing regulations or disadvantage traditional licensed drivers.
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