Government minister faces flurry of questions from MP over cross-border and ride-hail regulations
The Government has defended its position on ride-hailing firms operating outside their licensed areas, despite growing concerns over public safety and the impact on small taxi businesses.
Liberal Democrat Deputy Chief Whip Tom Morrison has pressed the Department for Transport on the issue, raising questions about protections for small taxi operators, compliance with fare regulations, and public safety risks linked to out-of-area operations.
In response, Transport Minister Simon Lightwood stated that existing legislation allows both taxis and private hire vehicles (PHVs) to accept pre-booked fares beyond their licensing authority’s borders. He said this flexibility benefits passengers by increasing service availability.
Local authorities are responsible for ensuring that those granted taxi and PHV licences are fit and proper. Lightwood confirmed that licensing authorities have discretion in setting their own standards but are guided by statutory and best practice recommendations from the Department for Transport.
Concerns over safety and enforcement have been acknowledged. By law, licensing authorities in England must share any safeguarding or road safety concerns about drivers licensed elsewhere with the relevant authority, which then decides whether to suspend or revoke a licence. However, the ability of local authorities to enforce standards on operators working outside their area remains a challenge.
Morrison also questioned whether ride-hailing firms are being held to account on fare regulations. Lightwood made clear that local authorities have no power to regulate PHV fares, as these services must be pre-booked, allowing passengers to compare prices before booking.
The Government has acknowledged growing concerns about out-of-area working and is now considering ways to strengthen regulations in the sector. However, no firm proposals have been put forward at this stage.
Minister Lightwood said: “Legislation has always allowed taxis and private hire vehicles to carry pre-booked fares outside the area in which they are licensed. This allows the sector to work more flexibly to meet the needs of their passengers.
“All licensing authorities in England have a duty to ensure that any person to whom they grant a PHV driver's licence or a PHV operator’s licence is fit and proper to hold such a licence. Licensing authorities have the flexibility to set the standards they consider appropriate for applicants to demonstrate this. To promote consistency in licensing requirements and policies for both taxis and private hire vehicles the Department for Transport has issued statutory and best practice guidance to assist authorities in setting high safety standards, and to promote proportionate regulation in relation to other requirements.
“Licensing authorities in England are required by law to share safeguarding or road safety concerns about taxi and private hire vehicle drivers licensed in other areas with the authority that issued the licence. The authority that issued the licence must then consider whether to suspend or revoke the driver’s licence.
“Licensing authorities do not have the power to regulate private hire vehicle fares, as such services must be pre-booked passengers are able to compare prices and other factors prior to booking the service.
“The Government recognises concerns around out-of-area working and is considering options to strengthen the regulation of the sector.”
