LOWER ENTRY BARRIER: Council scraps taxi knowledge test in bid to boost driver numbers
- Perry Richardson
- 7 minutes ago
- 2 min read
South Kesteven District Council has formally approved a refreshed Hackney Carriage and Private Hire Licensing Policy, adopting a package of changes aimed at reducing barriers to entry for new drivers while maintaining statutory safety standards.
The decision was taken by Full Council on 29 January 2026, with the updated policy coming into effect alongside revised fees from 1 February 2026.
The review, led by the council’s Cabinet Member for Corporate Governance and Licensing, follows sustained feedback from drivers and operators who argued that local licensing costs and requirements were discouraging recruitment and pushing drivers towards neighbouring authorities. Officers reported that economic pressures and competition from out of area licensed vehicles had intensified strain on the local taxi trade.
Among the most significant changes is the removal of the mandatory knowledge test for new driver applicants. The council said feedback from the trade indicated that modern satellite navigation had reduced the practical value of such tests, which are recommended in guidance rather than required by statute. The English language assessment will remain, but the first attempt will now be free of charge, with fees applied only to repeat tests.
Council signs off refreshed Hackney Carriage and Private Hire Licensing Policy, introducing one year licences for new drivers and removing the knowledge test requirement
The policy also introduces a one year driver licence for those entering the profession, replacing the standard three year duration for new applicants. The council said this would allow prospective drivers to test the viability of the work before committing to longer term costs, aligning with national statutory standards that permit shorter licences in appropriate circumstances. From the 2026 to 2027 financial year, drivers will also be able to spread licence fees through quarterly payments.
Revised fees and charges have been set following a time and motion study to ensure full cost recovery of the licensing service. Finance officers confirmed there are no additional budgetary implications for the authority, with the updated fee schedule intended to keep South Kesteven competitive with neighbouring councils while maintaining regulatory capacity.
The council said the refreshed policy continues to give due regard to the Statutory Taxi and Private Hire Vehicle Standards and the latest non statutory guidance issued by the Department for Transport. Enhanced enforcement activity during 2025, including a twelve week programme of evening and weekend patrols, informed the review and was described as broadly well received by drivers.
The updated policy applies across all wards in the district and replaces the version adopted in June 2024. The council said further engagement with the taxi trade and correspondence with central government would continue, particularly around concerns linked to cross border working by vehicles licensed outside the district.
