Taxi driver General Secretary raises prospect of ABBA model as cross-border private hire reform gathers pace

The Licensed Taxi Drivers’ Association (LTDA) has said a narrow form of cross-border private hire reform could emerge from ongoing parliamentary scrutiny, potentially reshaping how journeys between licensing areas are handled in England and Wales.

Steve McNamara, General Secretary of the Licensed Taxi Drivers’ Association (LTDA), told TAXI Newspaper that a “possible win” may lie in the introduction of an ABBA-style solution, driven by the Transport Select Committee inquiry into taxi and private hire services alongside proposals for regional licensing authorities.

Under the ABBA model, a private hire vehicle licensed in one authority area, referred to as area A, would be permitted to take a passenger into another licensing area, area B, and return the passenger to its original licensing area. Crucially, the vehicle would not be allowed to undertake further work within area B, nor move between other licensing areas such as B to B or B to C.

Supporters like the LTDA argue that this approach would restore a degree of proportionality to cross-border working, allowing legitimate return journeys while preventing the widespread out-of-area operation that has become common under the current framework. McNamara warned, however, that parts of the private hire sector are likely to resist any tightening of rules, saying some operators would “fight this one tooth and nail”.

Industry leaders say parliamentary scrutiny and regional licensing could unlock limited reform, but warn safety risks and enforcement gaps remain unresolved.

Cross-border private hire working has been controversial for more than a decade, largely due to disparities between local licensing standards. Vehicles and drivers licensed in areas with lower fees or less stringent requirements can legally work in neighbouring authorities once a booking is accepted by their home operator, even if they spend most of their time operating elsewhere.

This has created enforcement challenges for councils, which often have limited powers over vehicles licensed outside their area. Local authorities have repeatedly raised concerns about safeguarding, vehicle standards, insurance compliance and the ability to take swift action against drivers who breach local rules but are licensed hundreds of miles away.

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Taxi trade bodies also argue that the current system undermines local accountability. Hackney carriage drivers and locally licensed private hire drivers must meet their council’s conditions, while out-of-area vehicles can compete in the same market without being subject to the same oversight, creating what critics describe as an uneven playing field in some cases.

The proposed ABBA approach is seen by some as a compromise between a full ban on cross-border working and the status quo. By limiting journeys to an outward leg and a return, it would allow operational flexibility for genuine pre-booked trips while curbing the practice of vehicles effectively relocating to other districts for extended periods.

Any move towards this model would require legislative change and clearer national direction, particularly if regional licensing authorities are introduced. McNamara stressed that any reform must prioritise passenger safety and practical enforcement over commercial interests.

McNamara said in TAXI Newspaper: “The possible win is in relation to Cross Border Hiring, where a combination of the inquiry by the parliamentary Transport Select Committee, coupled with the introduction of regional licensing authorities, could pave the way for the arrival of the ABBA solution. Th is is where a private hire vehicle licensed in area A, can take a passenger into another licensing area (B), and bring them back again, but they could not go from B to B, or B to C, etc.

“Many within the PH trade will fight this one tooth and nail, and we will have to work hard to ensure that public safety and common sense endures over any financial interests of some operators.”