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Transport Minister explains why a change to TAXI AGE LIMITS may play key part in tackling cross-border and rising costs


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The UK Government is actively considering whether vehicle age limits for taxis and private hire vehicles should form part of new national minimum licensing standards, as mounting evidence shows wide disparities between local authorities and growing concern over safety, emissions and regulatory loopholes.


The issue was aired in detail during oral evidence to the House of Commons Transport Committee, where ministers and officials acknowledged that vehicle age policies vary sharply across England and may be encouraging licence shopping, allowing older vehicles to remain in service in some areas while being refused in others.

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The discussion forms part of a wider review of taxi and private hire regulation led by the Department for Transport, which is preparing to introduce national minimum standards under forthcoming devolution legislation.


Giving evidence, Transport Minister Lilian Greenwood MP said the Government was open to reforming how vehicle age is regulated, describing current practice as inconsistent and, in some cases, illogical. “With vehicle age there is obviously an issue around vehicle safety,” Greenwood told MPs. “It would not be unreasonable to think that for taxis and PHVs, which are obviously doing a lot more mileage than most vehicles would be doing, and are obviously providing a service to the public, that we might require more frequent MOT tests, particularly for older vehicles.”

Greenwood stopped short of committing to a single national age limit, but questioned why some councils impose strict age caps on first licensing while allowing vehicles to remain in service for many years afterwards. “Some local authorities seem to have an age for first licensing that does not apply when renewing your licence,” she said. “Theoretically, there are some local authorities where you would be able to renew your licence with a vehicle of a certain age, but you would not be able to licence it for the first time and I am not sure that that makes sense.”


Her comments were reinforced by Liz Wilson, deputy director for accessibility, coaches, taxis and community transport at the Department for Transport, who described vehicle age as one of the most variable elements of taxi licensing nationwide. “There are licensing authorities where it is no older than three years, for example, but you can then license that vehicle for another 10,” Wilson said. “However, if you came with a five-year-old vehicle, you could not licence it.”

According to officials, these inconsistencies are a significant driver of out-of-area licensing, where drivers register vehicles with councils perceived to have more permissive rules. The practice has become a central concern for government as it seeks to raise standards and reduce enforcement gaps. Wilson said age limits, alongside licence fees and turnaround times, were among the factors prompting drivers to seek licences far from where they work.


Vehicle age limits are closely tied to broader debates around emissions and air quality. MPs pressed the minister on whether age could be used as a proxy for environmental performance, particularly in urban areas struggling with pollution.


Greenwood acknowledged the link but cautioned against a one-size-fits-all approach. “Emissions are a big issue, particularly in our towns and cities,” she said. “It is perhaps less of an issue for a taxi and PHV operating in a much more rural area.”


She suggested that local authorities might reasonably set higher vehicle standards where air quality action plans or clean air zones are in place, rather than imposing a uniform national rule.

Cost pressures also featured prominently in the discussion. Greenwood warned that tighter age limits could increase costs for drivers and, ultimately, passengers, particularly those who rely most heavily on taxis and private hire services.


“The more requirements we put in, the more cost we put into the system,” she said. “We know that a lot of people rely on taxis and private hire vehicles, particularly people who perhaps cannot afford a car of their own, or disabled people who would not be able to drive or even use public transport.”


However, some MPs argued that allowing older vehicles to remain in service risks creating a race to the bottom. Dr Scott Arthur told the session that drivers had reported falling incomes and increased pressure to operate older, more polluting vehicles. “If the result of that is we have older, more polluting, and perhaps less safe vehicles on the road, I am sure people would be willing to pay a little more to have a cleaner, safer vehicle to travel in,” he said.

Greenwood countered that consumer choice is already shaping fleets, particularly through app-based platforms that allow passengers to select hybrid or electric vehicles at different price points. “The public are already making the choices,” she said. “Perhaps sometimes it is for us to allow them to make the choice about what is affordable and what their priority is rather than us saying, ‘This is the service that you have to have.’”


The debate on age limits sits within a wider reform programme that includes proposals to move licensing responsibilities from district councils to larger local transport authorities and to introduce national minimum standards covering safety, safeguarding and accessibility.


Greenwood confirmed that vehicle standards, including age and testing frequency, would be considered during consultation, though she stressed that any changes must be evidence-based. “There is absolutely something for us to consider about how we measure the safety of a vehicle,” Wilson said, adding that passenger confidence depended on a clear baseline of safety regardless of where a vehicle was licensed.

For industry stakeholders, the outcome could have material implications for fleet investment, residual values and compliance strategies. A move towards tighter or more consistent age rules could accelerate vehicle replacement cycles, favour newer hybrid and electric models, and reduce the competitive advantage of licensing in authorities with looser standards. Conversely, a more flexible framework that relies on enhanced testing rather than hard age caps could allow operators to sweat assets for longer, provided safety benchmarks are met.


The Department for Transport has indicated that consultation on national minimum standards will follow passage of the English Devolution and Community Empowerment Bill, with ministers keen to act swiftly but wary of unintended consequences. Greenwood told the committee the government was “keen to do that” work without delay, adding that the current system had been under strain for years. “It is time that there was action,” she said.

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