THE KEY POINTS: Taxi industry set to highlight cross-border licensing and safety gaps in new inquiry
- Perry Richardson
- Aug 30
- 2 min read
The Transport Committee has opened a fresh inquiry into the state of licensing and regulation in the taxi and private hire vehicle (PHV) sectors. The industry is expected to put forward evidence pointing to major concerns over cross-border licensing, inconsistent standards and enforcement challenges.
One of the central issues will be “licence shopping”. Drivers are increasingly applying to authorities with lighter requirements and then working in other areas. Wolverhampton City Council has become the leading example, issuing 96% of its licences to drivers living outside the city. In Greater Manchester alone, more than 9,000 drivers are licensed by Wolverhampton despite living locally. Trade bodies argue this practice undermines local councils, who are left unable to properly monitor or discipline out-of-area drivers.
The patchwork of licensing standards across England is also expected to be raised. Councils currently set their own safety, accessibility and conduct rules, leading to significant differences between neighbouring areas. Drivers and operators are expected to say this confuses passengers and weakens public confidence. Calls are likely for a national baseline of requirements, with scope for local authorities to add stricter rules if needed.
Enforcement will be another key point. Local officers have no powers to stop or sanction drivers licensed elsewhere, leaving gaps in accountability. The industry is likely to push for shared enforcement powers or regional frameworks to strengthen oversight.
Passenger safety and safeguarding will be central to submissions. Industry groups are expected to argue that inconsistent checks and weak enforcement increase risks for vulnerable passengers. The lack of wheelchair-accessible vehicles, particularly among PHVs, will also likely be raised as an issue needing national action.
The role of ride-hailing platforms such as Uber and Bolt will feature strongly. Concerns remain that app-based operators can sidestep tougher local rules by relying on drivers licensed in areas with looser requirements. Issues around pricing, data and complaint handling may lead to calls for further regulation of digital operators.
Complaints and redress will be another area of focus. Passengers often do not know which authority to contact if service is poor, while drivers can struggle to raise issues with operators. Evidence is likely to suggest a clearer, centralised complaints process.
The National Register of Licence Revocations and Refusals (NR3) will also come under review. While the register is designed to prevent drivers refused in one area from working elsewhere, its effectiveness has been limited by inconsistent use. Industry groups are expected to call for mandatory participation by all councils.
Finally, the inquiry will look to the future with questions around autonomous vehicles. The taxi trade is expected to stress that clear rules on safety, insurance and liability must be in place before such vehicles enter service.
The Committee is accepting written evidence until 8 September. MPs will then consider whether a more standardised licensing system is needed to bring greater consistency and improve public confidence.
