Wolverhampton’s licensed private hire vehicle numbers move to nearly 35,000 as sharp cross-border rise continues

The number of private hire vehicle (PHV) licences issued by City of Wolverhampton Council has more than tripled in the past five years, with the authority now issuing significantly more PHV licences than many other parts of the UK.

According to latest figures, 34,768 PHV licences have been issued by the council. This compares with 24,048 in 2024 and 23,111 in 2023. In 2020, just 11,449 licences were issued. The sharp and sustained growth has raised questions about the long-term impact on licensing regulation and cross-border hiring practices.

Unlike traditional Hackney Carriages, which must be licensed in and operate primarily within a specific local authority area, PHVs can be licensed in one area and then used to work predominantly in another, provided they are dispatched through an operator licensed in the same licensing district as the vehicle and driver. Wolverhampton’s interpretation of this legal framework has made it a popular choice for drivers from across England and Wales seeking to obtain a PHV licence.

The city currently has just 116 licensed Hackney Carriages, in stark contrast to the tens of thousands of PHV licences issued. Wolverhampton Council does not track where vehicles operate once licensed, but it is widely accepted that many of these vehicles do not work in the city itself.

The reason for the continuing rise in PHV applications lies in the licensing process. Wolverhampton Council has developed a reputation for providing a faster, more streamlined, and arguably more business-friendly application process. Drivers and operators in neighbouring regions, where waiting times and requirements can be more demanding, increasingly look to Wolverhampton for licensing.

This trend has drawn criticism from some local authorities and trade representatives, who say the system creates an uneven playing field. They argue that licensing requirements can vary significantly between councils, particularly in areas such as local knowledge tests and vehicle standards. The ability for a driver licensed in Wolverhampton to operate hundreds of miles away under different standards is seen by some as a regulatory loophole that undermines local enforcement.

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While controversial, the practice known as cross-border hiring, is not illegal. Supporters of cross-border hiring point to several advantages under the current legal framework. It allows drivers greater flexibility to operate in areas with higher demand or limited local trade, helping them maximise their earnings. Passengers benefit from increased availability and competition, which can lead to reduced waiting times and more choice, particularly in areas underserved by locally licensed vehicles.

Large national operators and ride-hailing platforms also rely on cross-border hiring to offer consistent service across multiple regions without holding multiple local licences. For drivers, councils like Wolverhampton offer a faster and more efficient licensing process compared to some local authorities, enabling quicker access to work. While the practice draws criticism, it remains legal and can provide commercial and practical benefits to both the private hire sector and the travelling public.

In response to the continued rise in licence numbers, some trade bodies have urged the Government to review existing legislation to give councils more control over who operates within their boundaries. There are suggestions to introduce national minimum standards and placing limits on cross-border activity unless reciprocal agreements are in place between councils.

For now, Wolverhampton remains one of the most prominent licensing authorities in the country. Unless legislative change is introduced, the number of PHV licences issued from the city is likely to continue rising as more drivers look for quicker access to the trade.