TfL to double down on ‘far more urgent’ cross-border licensing priority as taxi and private hire pressures mount
- Perry Richardson
- 56 minutes ago
- 3 min read
Transport for London (TfL) has reiterated that cross-border licensing remains its top legislative priority in regulating the capital’s taxi and private hire vehicle (PHV) sector. The confirmation came during a detailed session of the London Assembly Transport Committee earlier this week, where senior TfL officials were pressed on the gaps in enforcement and oversight created by the current legal framework.
Under existing legislation, PHV drivers and operators licensed outside London are permitted to carry out work in the capital, provided the job is pre-booked. This has led to the growth of what Assembly Members describe as a “regulatory loophole” that undermines TfL’s ability to uphold its own licensing standards and enforcement activity.
TfL said the scale of the issue has increased in recent years, driven in part by licensing delays and disparities in cost and standards between local authorities. Some drivers have opted to obtain licences from boroughs with perceived lower entry requirements, while continuing to carry out the vast majority of their work within Greater London.
In response, TfL is now focusing its lobbying efforts on securing legislative changes to address cross-border hiring. Officials said they are pushing for a legal requirement that any PHV journey should either start or end in the licensing authority’s jurisdiction—a model often referred to as the “ABBA” rule (A to B or B to A). TfL previously outlined this proposal in a 2018 policy paper and confirmed to Assembly Members that it remains the preferred solution.
TfL’s Helen Chapman described the issue as “far more urgent” than other legislative asks, including caps on vehicle numbers. She warned that introducing a cap in London without resolving cross-border hiring could push more operators and drivers to license elsewhere, exacerbating the very problem the cap seeks to control.
Assembly Members challenged this stance, arguing that TfL should still be pressing for both powers in parallel. They questioned why the agency had dropped the capping request entirely, rather than retaining it as part of a broader legislative agenda. Members pointed out that the lack of a cap, combined with the inability to restrict cross-border operations, leaves London without any mechanism to control the number of PHVs operating on its streets.
TfL did not dispute the scale of the challenge. Officials said the capital remains bound by a legal framework that predates app-based models and offers little flexibility to adapt to changes in technology or industry practice. While TfL has implemented higher licensing standards within its remit, including English language requirements and safeguarding checks, it has no authority over PHV drivers licensed outside London. This leads to inconsistent standards and enforcement gaps, particularly when it comes to vehicle condition, driver conduct, and data sharing.
The disparity has raised concerns not only about public safety but also about fairness to drivers who undergo more rigorous checks and pay higher fees to be licensed in London. Assembly Members noted that the current system creates an incentive for drivers to licence outside the capital and undermines trust in TfL’s ability to manage the industry effectively.
Despite the frustrations, TfL said its engagement with Government on the matter is ongoing. Officials acknowledged the previous Government’s resistance to change, particularly over concerns about restricting market competition. However, with continued pressure from trade groups and Assembly Members, TfL is hopeful that cross-border licensing reform could gain traction under a future legislative programme.
This regulatory fragmentation has led to growing calls from across the industry for a national licensing standard and greater devolution of enforcement powers. TfL says it supports these aims but insists the ABBA model would provide a simpler, more effective fix in the near term.
