MINIMUM STANDARDS TO CROSS-BORDER WORKING: Why the Casey Report will transform the taxi and PHV industry
- Perry Richardson
- Sep 17
- 4 min read
The publication of Baroness Louise Casey’s National Audit on Group-Based Child Sexual Exploitation has sent shockwaves through the taxi and private hire vehicle (PHV) industry. The report not only exposes longstanding weaknesses in taxi licensing but makes clear that the current approach to cross-border hiring is unsustainable. For the trade, regulators and government, the findings mean that the way taxis and PHVs are licensed and monitored is about to change at a fundamental level.
Taxis and exploitation: a long-running concern
The Casey Report highlights what has been evident for more than a decade: in a small minority of cases, taxis have played a role in the exploitation of children. Vehicles have been used both to traffic victims and to introduce them to perpetrators. This was identified as early as the Rotherham inquiry in 2014, where Professor Jay found that taxi drivers were a “common thread” in abuse cases. Subsequent reports from Oldham, Newcastle and Telford reinforced these concerns.
While the vast majority of drivers are law-abiding and often act as protectors in their communities, the audit stresses that safeguarding cannot be left to goodwill alone. Licensing must be watertight if it is to prevent those intent on harm from exploiting gaps in the system.
Inconsistent licensing standards
Taxi and PHV licensing sits with local authorities, guided by Department for Transport (DfT) statutory and best practice frameworks. Some councils, particularly those with direct experience of exploitation scandals, have gone far beyond the minimum requirements. Rotherham is a prime example. In the aftermath of its child sexual exploitation cases, the council introduced sweeping reforms. These included:
Mandatory in-vehicle CCTV capable of filming both driver and passengers.
A clear and enforceable definition of what makes a driver a “fit and proper person”.
Compulsory safeguarding knowledge tests with a 100% pass mark.
Regular refresher training every three years.
The use of civil thresholds to revoke licences where drivers were accused of serious offences, even where criminal convictions were not secured.
These reforms, applied retrospectively to existing drivers, led to the revocation of a significant number of licences. They also set a benchmark that many argued should be adopted nationally.
Other areas, however, have not followed suit. The report found that some authorities still rely on minimal checks, allowing drivers to gain a licence under weaker regimes and then operate in stricter neighbouring areas.
The scale of cross-border hiring
Cross-border hiring, where drivers obtain a licence in one authority but work almost exclusively in another, has grown dramatically. The Casey Report cites Greater Manchester, where Mayor Andy Burnham has campaigned against “out of area” licensing. Figures obtained by the GMB Union revealed that one council alone issued 8,563 new licences in just five months. More than 95% of those went to drivers who lived outside the borough.
This practice undermines the ability of local councils to enforce standards. Councils with strong safeguards see their work diluted when large numbers of drivers from elsewhere flood their streets, operating under weaker conditions. In short, local regulators have responsibility without control, a situation the report brands unacceptable.
Why a halfway solution is no longer viable
The audit is unambiguous: piecemeal reform cannot address the risks. Suggestions in the past that councils could “tighten up” individually or that voluntary regional agreements might suffice are rejected by Casey’s findings. Where licensing regimes differ, offenders will always gravitate to the weakest link.
This is why a halfway house on cross-border hiring should not be an option. The report shows that unless licensing standards are applied consistently across England, vulnerable people remain at risk. The Department for Transport has been told to act urgently to close the loopholes and bring in national, rigorous rules.
What change will look like
The direction of travel is now clear. National minimum standards for licensing will need to be mandatory rather than advisory. At the very least, councils will likely lose the ability to accept out-of-area drivers who have not met those benchmarks. This may involve:
A standardised definition of “fit and proper person” applied uniformly across the country.
National rules on CCTV, safeguarding training and criminal background checks.
A requirement for drivers to be licensed where they primarily live and work, ending the out-of-area model.
Centralised systems to track and share intelligence between councils, police and regulators.
The emphasis, according to the report, is not just about protecting passengers. Proper safeguards also protect drivers, many of whom have themselves been victims of assault, robbery or false allegations. By raising standards across the board, the trade gains credibility, public trust and a level playing field for compliant operators.
Industry implications
For the taxi and PHV trade, these reforms will have major consequences. Operators and drivers licensed in areas with already high standards may see little change, beyond the levelling of competition. Those working under weaker regimes, however, will face far greater scrutiny. Businesses reliant on low-bar licensing authorities will need to adapt or risk losing access to the market altogether.
Councils will also need new resources to enforce higher standards. Training, inspection and enforcement capacity will have to grow in line with more stringent national rules. After years of warnings and scandals, failure to close the gaps would leave government ministers exposed to criticism if further exploitation cases emerge.
The end of the current model
The Casey Report has made plain that the system as it stands is untenable. Loopholes have allowed unsafe practices to persist, with devastating consequences for victims of exploitation. The Department for Transport has been told to close those loopholes immediately.
In doing so, the taxi and PHV industry will be reshaped. Local patchwork licensing is set to give way to consistent national rules. Safeguarding, training and monitoring will be strengthened across the board. Drivers, operators, councils and passengers must all prepare for a very different regulatory environment.
The industry has reached a turning point. Cross-border hiring, in its current form, cannot survive the findings of the Casey Report. The era of uneven standards and regulatory loopholes looks set to be coming to an end.
