Transport minister discusses national taxi standards, larger licensing areas and possibility of clampdown on out-of-area working
- Perry Richardson
- 18 minutes ago
- 4 min read
The Department for Transport recently signalled the most significant shake-up of taxi and private hire vehicle licensing in a generation, confirming work is under way on national minimum standards and wider licensing areas in response to Baroness Casey’s audit on group-based child sexual exploitation and abuse.
In a written answer to former Transport Minister Richard Holden, Transport Minister Lilian Greenwood said officials ARE continuing to assess the risks posed by drivers operating predominantly outside the local authority that granted their licence and considering reforms to curb out-of-area working while protecting journey flexibility for passengers. The question explicitly referenced chapter 7 and recommendation 11 of the Casey report, which highlighted concerns around taxi and PHV licensing in the context of child sexual exploitation.
Greenwood confirmed the Government has already moved to legislate. On 18 November ministers tabled an amendment to the English Devolution and Community Empowerment Bill, seeking powers for the Secretary of State to set national minimum standards for taxi and PHV licensing by secondary legislation. Those standards would be subject to consultation and are expected to focus primarily on passenger safety and accessibility, covering drivers, vehicles and operators. MPs backed the new power at Commons Report Stage and the Bill now heads to the House of Lords.
For licensing authorities and operators, the shift points towards a more uniform regulatory framework across England. The Government has already signalled in its response to the Casey audit that it wants to end decades of fragmented local rules and inconsistent safeguarding thresholds. National minimum standards would sit above local conditions, effectively setting a floor that all authorities must meet while still allowing some regional variation where justified.
Government eyes national taxi licensing standards after Casey child exploitation audit
The English Devolution white paper, published last December, committed the Government to consult on making all Local Transport Authorities, including strategic authorities, responsible for taxi and PHV licensing. Greenwood said administering licensing over larger areas could “increase consistency and efficiency”, cut the incentive for drivers to seek licences in perceived “softer” districts, reduce out-of-area working and better align fee income with enforcement and compliance costs. The consultation, which will be watched closely by operators and councils alike, is due to launch soon.
The Casey audit, commissioned by the Prime Minister and Home Secretary and published on 16 June 2025, examined group-based child sexual exploitation across England and Wales and criticised historic failings in safeguarding systems, including weaknesses in how taxis and PHVs were regulated and monitored locally. The Government has accepted its recommendations and pledged to legislate “as soon as possible” to tackle inconsistent licensing standards, positioning taxi and PHV reform as part of a wider child protection agenda.
For the trade, the detail of any national standards package will determine the operational impact. Stricter, uniform vetting, training and data-sharing requirements would likely increase compliance costs for operators and drivers in some areas but could simplify cross-boundary working where enforcement responsibilities are clearer and standards are aligned. Authorities that have historically invested heavily in safeguarding conditions may see less disruption, while those with lighter regimes could face a step-change in expectations and resourcing.
Greenwood stressed that officials are still considering “further options for reform, including out-of-area working and enforcement”, with a stated aim of allowing taxis and PHVs to serve the journeys passengers need in a “consistently safe way” while securing “the best overall outcomes for passenger safety”. That leaves open the possibility of additional measures on cross-border operations beyond national minimum standards, such as clearer limits on predominantly out-of-area work or new enforcement powers for destination authorities, both of which are being pushed by some city-region leaders.
Minister Greenwood said: “The Department has been actively looking at safeguarding and regulatory reform in relation to taxis and private hire vehicles (PHVs). Baroness Casey’s National Audit on Group-based Child Sexual Exploitation and Abuse added valuable evidence to this ongoing work.
“The English Devolution white paper, published in December last year, committed to consult on making all Local Transport Authorities, including Strategic Authorities, responsible for taxi and PHV licensing. Administering taxiand PHV licensing over larger areas could increase consistency and efficiency in taxi and PHV licensing across England, reduce out-of-area working and better match licensing revenue and compliance and enforcement burdens. The consultation will be launched soon.
“The Government response to Baroness Casey’s National Audit committed to legislate to address the important issues raised, tackling the inconsistent standards of taxi and PHV driver licensing.
“On Tuesday 18 November, the Government tabled an Amendment to the English Devolution and Community Empowerment Bill to seek a power for the Secretary of State to set in regulations national minimum standards for taxi and PHV licensing. These standards would be subject to consultation and would be primarily focused on passenger safety and accessibility. This would mean that wherever the public live or travel any taxi or PHV service they use would be subject to robust standards. The power was approved by the Commons at Report Stage and the Bill will now move to the Lords.
“The Department continues to consider further options for reform, including out-of-area working and enforcement. We need to ensure that taxis and PHVs are able to work in a way that facilitates the journeys passengers want and need to make, in a consistently safe way, whilst achieving the best overall outcomes for passenger safety.”
