Oxford City Council taxi and private hire licensing freeze maintained as Uber-driven growth fuels enforcement demands
- Perry Richardson
- 1 hour ago
- 3 min read
Oxford City Council has confirmed it will hold Hackney carriage and private hire vehicle licence fees at current levels for the 2026/27 financial year, despite a significant rise in private hire applications following Uber’s entry into the city market.
The decision emerged during a meeting of the General Purposes Licensing Committee, where councillors heard concerns from the City of Oxford Licensed Taxicab Association (COLTA) about growing competition from private hire operators and the financial pressures facing the city’s Hackney carriage trade.
Addressing the committee, COLTA Secretary Sajad Khan welcomed the council’s decision not to increase licensing fees but argued many drivers had expected costs to reduce following the substantial growth in Oxford’s private hire sector. Khan said private hire vehicle licence numbers had exceeded 1,000 for the first time and suggested a larger licensed fleet should help ease pressure on the licensing department’s finances.
Khan also highlighted wider challenges facing taxi drivers, including reduced demand, changing travel patterns and increased competition following Uber’s launch in Oxford. He told councillors that many drivers continue to face financial hardship as operating costs rise while work remains difficult to secure.
Oxford City Council says sharp rise in private hire applications has increased regulatory workload despite calls from taxi drivers for lower licensing costs
Responding on behalf of the licensing authority, officers revealed private hire driver numbers increased by 28% and private hire vehicle numbers rose by 39% between January 2025 and January 2026. The council said the increase occurred within less than a year of Uber beginning operations in Oxford and is continuing to be monitored closely.
However, council officers rejected suggestions that increased licence numbers had reduced regulatory costs. Instead, they said the growth had generated a significant increase in compliance and enforcement activity, licensing applications, customer enquiries, safeguarding and knowledge testing, administrative workloads and licensing sub-committee hearings.
The authority said it had already increased staffing levels and invested additional resources to manage the surge in applications. Officers also highlighted ongoing investment in licensing systems, including the implementation of online taxi payments intended to improve services for both Hackney carriage and private hire licence holders.
A central issue discussed during the meeting was the legal requirement for licensing income to remain ringfenced. Oxford City Council explained that revenue generated from private hire licensing can only be used to regulate the private hire sector, preventing any direct cross-subsidy between licence categories. Officers stated that while increased private hire income was helping fund the additional workload generated by sector growth, any future surplus would be reflected during later fee reviews if circumstances allowed.
The committee also heard debate around differences between Oxford’s licensing fees and those charged by neighbouring South Oxfordshire District Council. Licensing officers argued that direct comparisons were misleading due to major differences in fleet sizes and operating models.
Oxford continues to cap Hackney carriage vehicle numbers at 107, while South Oxfordshire licenses around 500 Hackney carriages. According to officers, the larger fleet allows regulatory costs to be spread across a significantly greater number of licence holders.
Questions were also raised about the costs associated with ultra-low emission vehicles and reports from some drivers regarding delays in sourcing LEVC replacement parts. Trade representatives warned that component shortages could affect vehicle compliance testing and potentially remove vehicles from service. Licensing officers responded that neither the council nor Oxford Direct Services had identified any widespread issues affecting testing arrangements or vehicle licensing compliance.
Councillors further discussed whether the rapid increase in private hire licensing activity should trigger additional enforcement investment. Officers maintained that extensive enforcement operations are already taking place and indicated further compliance activity is planned during the coming financial year.
Ultimately, councillors voted to recommend approval of the Hackney carriage and private hire licensing fee structure for 2026/27 without any increases. The council said the decision reflected a desire to support licensed drivers and operators while continuing to meet the costs of regulation, compliance and enforcement activity across both sectors.
