THE BIGGEST INSIGHT YET: Transport Minister gives background to planned national reset for taxi and private hire regulation
- Perry Richardson
- 37 minutes ago
- 4 min read
The Transport Minister has given the clearest indication yet that England’s taxi and private hire regulatory framework is heading for significant structural change, telling MPs that the current system is “archaic and fragmented” and no longer fit for purpose. Giving evidence to the Transport Select Committee in January, Lilian Greenwood set out a reform agenda centred on national minimum standards, curbing cross-border licensing and addressing persistent failures in accessibility, particularly for wheelchair users.
The session, which marked the final oral evidence hearing in the Committee’s inquiry into taxi and private hire licensing, offered the most detailed insight so far into the Department for Transport’s thinking ahead of legislative change. Greenwood made clear that incremental fixes were no longer sufficient, stating that the sector functions “despite the legislation rather than because of it”.
Three themes dominated the Minister’s evidence: the introduction of enforceable national minimum standards, structural reform to address out-of-area working, and a more interventionist approach to accessibility where market forces have failed.
National minimum standards as the foundation of reform
At the core of the Government’s plans is the introduction of national minimum standards for taxi and private hire licensing, enabled through powers in the English Devolution and Community Empowerment Bill. Greenwood described this as the necessary first step towards restoring consistency and public confidence across England’s 263 licensing authorities.
“It is absolutely clear to everyone that the current legislation is archaic and fragmented,” she told MPs. “We have a decent functioning taxi and PHV sector despite the legislation rather
than because of it.”
The Minister was explicit that certain areas would tolerate no local variation. “When it comes to safeguarding, safety and accessibility, we want to set standards that it would be hard to improve on,” she said, pointing to enhanced DBS checks and mandatory checks against barred lists as examples of requirements that should apply universally.
Accessibility training was singled out as an immediate priority. Greenwood described it as “unacceptable” that only around two-thirds of licensing authorities currently mandate disability equality training, adding: “You should know that when you use one of these vehicles, the people who
are providing that service know what is appropriate in order to meet the needs of disabled people.”
While stressing that the standards would be minimum rather than absolute, Greenwood acknowledged the risk that partial harmonisation could entrench licence shopping.
However, she argued that raising the floor nationally would reduce incentives for drivers to seek out authorities perceived as cheaper or quicker. The standards, she said, were intended to “race the rising tide to raise all boats”.
Cross-border licensing and the end of the status quo
The second major takeaway concerned out-of-area working, an issue repeatedly raised during the inquiry and one Greenwood accepted was undermining both enforcement and public trust.
“I do not want people to shop around for licences,” she said. “It is not a good situation.” Greenwood rejected the notion that any single authority was to blame, but accepted that the current framework had created structural incentives for drivers to license far from where they work.
The Minister confirmed that national minimum standards would be combined with a proposal to move licensing responsibility from district councils to around 70 local transport authorities. This, she argued, would improve consistency and make enforcement more workable. “If we move from 263 local licensing areas to around 70, that combined with national minimum standards will lead to much greater consistency,” she said.
Importantly for licensing authorities and drivers, Greenwood did not rule out further restrictions on cross-border working if early reforms fall short. “These measures are not a panacea,” she told the Committee. “This is not the end of the conversation.”
Officials outlined a range of options under consideration, including restrictions linked to where a driver lives rather than where journeys start and end. Greenwood acknowledged that more radical models, such as journey restrictions, carried risks around empty mileage, higher fares and reduced availability, particularly for disabled passengers.
“We know what the outcomes need to be,” she said. “We have not reached a fixed view on what the best way is of getting there.”
Accessibility and wheelchair provision under renewed scrutiny
The most pointed exchanges of the session came on accessibility, where Greenwood accepted that existing legislation and enforcement were falling short, especially for wheelchair users.
“The statistics and the anecdotal evidence we have from guide dog users are appalling,” she said. “We have to assume that enforcement is not working as well as it should.”
On wheelchair accessible vehicles, Greenwood acknowledged that provision remains uneven and, in many areas, inadequate. While noting that wheelchair accessible vehicles are not suitable for all disabled passengers, she accepted that the current market was failing to meet demand.
“Certainly, I would want there to be sufficient provision to meet need,” she told MPs. “I do not want people to be in a position where they cannot access a vehicle that meets their needs and enables them to do the journeys they want to do.”
However, the Minister stopped short of committing to national quotas or mandates, citing cost pressures and the risk of unintended consequences, such as drivers switching from taxis to private hire to avoid wheelchair requirements. “I am not sure that there is a really easy way to do it,” she said, describing the challenge as one requiring a balance of incentives and regulation.
Senior officials confirmed that the issue is most acute in the private hire sector, particularly outside major cities. Greenwood committed to further work on the issue, including exploring whether national standards or other mechanisms could play a role.
A clear signal of change ahead
While Greenwood avoided setting firm timelines, her evidence left little doubt that reform is imminent. She told MPs that the Department intends to move quickly once legislative powers are secured, with consultation on national minimum standards expected to follow shortly after Royal Assent.
“It is time that there was action,” she said. “We are keen to do that.”
The era of highly localised, uneven taxi and private hire regulation is drawing to a close, and national consistency, tighter oversight and renewed pressure on accessibility are now firmly on the Government’s agenda.
