CROSS BORDER TARGETED: Taxi and private hire vehicle licensing set for MAJOR shake-up in devolution White Paper
The Government’s English Devolution White Paper has set its sights on significant reforms to taxi and private hire vehicle (PHV) licensing as part of a broader strategy to empower local authorities. The proposals aim to create a more consistent, efficient, and enforceable framework for the sector, which has long faced challenges related to cross-border operations and varying licensing standards.
Currently, taxi and PHV licensing responsibilities are fragmented across numerous local authorities, leading to discrepancies in standards and enforcement across the country. This has allowed some operators to exploit regulatory loopholes by licensing their vehicles in areas with less stringent rules while operating elsewhere, often undermining local controls and accountability.
The White Paper proposes a bold move: transferring licensing responsibilities to all Local Transport Authorities (LTAs), including Strategic Authorities. By consolidating these powers within larger governing bodies, the Government aims to:
Standardise Licensing Across Regions: A single authority covering a broader geographic area would ensure uniform standards, reducing the current disparities that create loopholes.
Strengthen Enforcement: Larger authorities would have greater capacity to enforce rules consistently across their regions, preventing rogue operators from flouting regulations.
Achieve Economies of Scale: By centralising operations, authorities could streamline the licensing process, potentially reducing administrative costs and improving efficiency.
Reduce Out-of-Area Working: Unified oversight could curb the incentives for operators to seek licences in areas far from where they intend to work, addressing a long-standing issue in the sector.
The Government is mindful of the sector’s complexity and the potential impact of these changes. It plans to consult with stakeholders—including operators, local authorities, and passenger groups—to fully understand the ramifications before making a final decision.
This consultation will focus on balancing the benefits of centralisation with the need to maintain local input and flexibility. The Government acknowledges that such reforms would represent a significant shift in how the taxi and PHV sector is managed and regulated.
In London, where taxi and PHV licensing is already managed by Transport for London under the Mayor’s authority, the model demonstrates how centralised oversight can deliver improved consistency and better enforcement outcomes. The proposed framework could extend similar benefits across the rest of England, creating a more coherent and accountable system nationwide.
The White Paper recognises the essential role taxis and PHVs play in local transport networks, particularly for vulnerable groups who rely heavily on their services. Ensuring these services are safe, efficient, and properly regulated is at the heart of the Government’s proposals.
If implemented, these reforms would mark a significant evolution in the sector’s governance, aligning it with the Government’s wider goals for local devolution and regional accountability. While the proposals are still in the consultation phase, the direction is clear: the Government intends to tackle inconsistencies, raise standards, and give local communities more control over the services they depend on.
What exactly is in the White Paper that relates to taxi and private hire?
The Government’s White Paper states:
“Taxis and private hire vehicles are an important part of our transport networks and some of the most vulnerable groups in our society rely on them. We recognise there are concerns about out-of-area working by private hire vehicles and are exploring how best to address these concerns. As part of this, we will consult on whether to make all Local Transport Authorities (including Strategic Authorities) responsible for taxi and private hire vehicle licensing.
“Administering taxi and private hire vehicle licensing across this larger footprint would increase the consistency of standards and enable more effective use of enforcement powers across a whole functional economic area. Greater economies of scale should also enable authorities to improve the efficiency of licensing, reducing the incentives for people to license out of their usual working area. This would be a significant change for the sector, and we will work with stakeholders to understand possible impacts before taking a final decision. In London, taxi and private hire vehicle licensing is already the responsibility of the Mayor and Transport for London.“
