TfL pushes government action on cross-border hiring over private hire vehicle capping as latest letter debates powers
- Perry Richardson
- 24 minutes ago
- 2 min read
Transport for London has reiterated its call for government intervention to tackle cross-border private hire working, responding to recommendations put forward from the London Assembly Transport Committee on powers to cap the number of private hire vehicles operating in the capital.
The Committee urged TfL to lobby the Government for legislative authority to introduce a cap on private hire vehicle numbers in London, arguing that rising vehicle volumes are undermining driver earnings, congestion and regulatory oversight. The recommendation formed part of a wider critique of TfL’s Taxi and Private Hire Action Plan, which the Committee said lacked sufficient measures to stabilise the market.
In its response, TfL said addressing cross-border hiring remains its primary policy objective and warned that introducing a cap without resolving out-of-area working would be ineffective. Under current legislation, private hire vehicles and operators licensed outside London are permitted to carry out pre-booked work in the capital, limiting TfL’s ability to enforce local standards and control supply.
TfL said it continues to press the Government to introduce a Journey Start or End Rule, which would require all taxi and private hire journeys to either begin or finish in the licensing area where the driver, vehicle and operator are licensed. The authority first proposed the reform in 2018 and reiterated during recent evidence sessions that it remains its top legislative priority.
Transport authority says PHV cap ineffective without legislative reform on out-of-area working
The issue was raised formally by TfL during oral and written evidence to the House of Commons Transport Select Committee in October 2025. TfL told MPs that without changes to the national licensing framework, any attempt to cap vehicle numbers in London could be undermined by vehicles licensed elsewhere simply increasing their activity in the capital.
TfL acknowledged that a cap could deliver potential benefits, including improved driver earnings, reduced congestion and lower emissions. However, it cautioned that caps also carry risks, such as reduced vehicle availability during peak demand, increased licence hoarding, higher administrative costs and the potential growth of illegal touting. TfL said these trade-offs would need careful assessment before any cap was introduced.
Beyond cross-border reform, TfL said it is also seeking wider legislative changes from Government, including national minimum licensing standards, enhanced enforcement powers across licensing boundaries and stronger regulation of app-based booking platforms. These measures, TfL argues, are necessary to restore effective control over the private hire market in London.
The Transport Committee has made clear it expects continued pressure on ministers to deliver reform within the current parliamentary session. Whether the Government is prepared to prioritise cross-border hiring legislation will be central to determining whether London gains meaningful control over private hire vehicle numbers in the coming years.
