Mayor Andy Burnham pushes MPs to curb ‘broken’ out of area taxi and PHV licensing as Devolution Bill advances
- Perry Richardson
- 21 minutes ago
- 4 min read
Greater Manchester’s political leaders, unions and taxi representatives are urging MPs to support changes to the government’s Devolution Bill that would give Mayoral Strategic Authorities the power to restrict private hire work to operators licensed within their area.
The call follows a roundtable on 21 November where senior figures agreed that the current regulatory landscape is failing local authorities and the trade.
The amendment, tabled by Elsie Blundell, MP for Heywood and Middleton North, will be considered during the Bill’s Report Stage next week. It proposes an optional licence where you operate model, giving combined authorities the ability to require that journeys beginning and ending within their boundaries are carried out by operators licensed locally. Greater Manchester officials view the proposal as an urgent response to a system they describe as fragmented, with licensing decisions concentrated in a small number of councils.
City of Wolverhampton Council currently licenses more than 11 percent of all private hire vehicles in England, up from less than 0.5 percent ten years ago. In Greater Manchester, almost half of all PHVs are now licensed outside the region’s ten councils. Local leaders argue that this reduces accountability, weakens enforcement and limits their ability to uphold standards. Hackney carriages remain bound to the area in which they are licensed, but PHVs can continue to work anywhere in England and Wales once granted a licence.
The Government has already acknowledged the need for reform. Its English Devolution White Paper pledged to consult on whether Strategic Authorities should assume responsibility for taxi licensing. Ministers have floated National Minimum Licensing Standards as part of the Bill, although officials in Greater Manchester say these would not resolve problems linked to out of area licensing.
Earlier this year a 12 week independent review gathered evidence from more than 5,200 licence holders, trade bodies and local authority officers. It examined three broad options, including regional licensing powers, and concluded that a city region approach could bring consistent standards and help slow the flow of drivers seeking licences from non local authorities. The Greater Manchester Combined Authority will consider the findings on 28 November and is expected to map out how a unified licensing system might operate. However, officials stress that legislative change remains essential, as none of the options would stop out of area licensing under existing law.
Mayor Andy Burnham and taxi industry representatives urge Parliament to back an amendment allowing regions to require locally licensed operators for local journeys.
The region is also preparing financial support to help the trade transition to cleaner fleets. An £8 million fund for Hackney carriage upgrades will open at the end of November. The GMCA will consider whether to create a similar scheme for PHVs during the 2026 to 2027 budget process, with the earliest loans expected by late May 2026 if approved. A new working group chaired by the Transport Commissioner will be formed to maintain regular engagement with taxi representatives and align policy with the wider Bee Network.
Around 120,000 taxi trips take place in Greater Manchester each day. The number of PHVs licensed outside the region but operating within it has increased sharply, rising from under 7,000 in 2023 to more than 12,000 this year. Survey results from the independent review indicate that most local PHV licensees choose Greater Manchester because it is where they live and work, while those licensed elsewhere cite faster processing, lower costs and simpler test arrangements offered by other authorities.
Local leaders maintain that only Parliament can resolve the core issue, but argue that acting through the Devolution Bill would give regions a more effective framework to oversee operators and safeguard standards across their own areas.
Mayor of Greater Manchester, Andy Burnham said: “Taxis are vital to our transport system and local economy. We want them to be amongst the safest and most trusted in the country. But we can’t do this with the current broken licensing system.
“Almost half of Greater Manchester’s private hire drivers are licensed elsewhere and that’s simply not right. The report is very clear about the benefits of changes at a national level, and the barriers drivers face when getting their licence locally.
“We have listened to what drivers, and the industry has told us, and we are determined to lead the way on licensing reform, ensuring high standards, public safety, and fair competition for our drivers. That is why we, along with the trade, are calling on Members of Parliament to back the amendment to close this legal loophole.”
Cllr Eamonn O’Brien, Leader of Bury Council and Clean Air lead for Greater Manchester, said: “Taxis and private hire vehicles play a key role in keeping Greater Manchester moving and supporting our night-time and visitor economy.
“Like the Bee Network, we’re committed to setting high standards and transitioning to cleaner, greener vehicles to support Greater Manchester’s journey towards cleaner air.
“We recognise the challenges drivers face, which is why we’re committed to working closely with the trade to ensure that upgrading to greener vehicles is both achievable and supported.”
