Could one council’s innovative cross border solution be the blueprint for nationwide cross border taxi reform?

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Lichfield District Council has introduced a proposal that could potentially reshape the way private hire vehicle (PHV) services operate across local authority boundaries… will other authorities follow?

The council's proposed policy, which would require operators to inform passengers when their driver is licensed by another authority, aims to bring greater transparency to the increasingly complex landscape of cross-border taxi and private hire services.

The proposal is straightforward but significant. It mandates that bookings allocated to vehicles licensed by a different authority must be recorded in a separate register. Furthermore, operators are required to notify passengers clearly if their driver and vehicle are not licensed by Lichfield District Council. The notification must include a specific statement that the

council has no authority to take licensing action against the driver or vehicle in the event of a complaint, directing customers instead to the authority that issued the licence.

This proposal comes at a time when the issue of cross-border hire has become a major point of contention within the taxi industry. Traditionally, taxi and private hire vehicle (PHV) drivers were expected to operate primarily within the area where they were licensed. However, the rise of app-based booking platforms and the advent of new technology have blurred these boundaries.

Drivers can now easily accept bookings from outside their licensed area, often working in locations where they may be unfamiliar with local regulations and road conditions. The practice of cross-border hiring has led to a number of challenges for local authorities. Licensing authorities have found it increasingly difficult to enforce their own rules and standards when drivers from other areas operate within their jurisdiction. This has raised concerns about public safety, as local councils have no control over the licensing process of out-of-area drivers and vehicles, which may have different standards of scrutiny.

Critics of cross-border hiring argue that it undermines the integrity of local licensing systems. They point out that drivers who operate in multiple jurisdictions might choose to be licensed in areas with less stringent requirements, leading to a "race to the bottom" in terms of safety and quality. This situation has created frustration among drivers and operators who adhere to stricter local regulations, as they find themselves competing with those who may have been licensed under more lenient conditions.

On the other side of the debate, proponents of cross-border hiring argue that it promotes competition and provides consumers with more choices. They might argue that the flexibility offered by modern booking platforms benefits both drivers and passengers by allowing for more efficient matching of supply and demand.

Lichfield District Council's proposal attempts to address these concerns by enhancing transparency and ensuring that passengers are fully informed about the licensing status of their drivers. By making it clear to passengers when a driver is licensed elsewhere, the council hopes to empower consumers to make informed decisions and direct complaints to the appropriate authority if issues arise.

The question now is whether this approach could become the standard across the UK. If widely adopted, it could lead to a more consistent and transparent framework for managing cross-border taxi services, helping to resolve some of the current controversies.

However, for this approach to be truly effective, it would require a concerted effort from ALL licensing authorities. A patchwork of different policies across the country could lead to further confusion and undermine the very transparency the proposal seeks to promote.