TAXI DEBATE: Transport Minister defends private hire vehicle ‘Cross Border’ law but admits changes may be necessary
In an eagerly anticipated parliamentary debate on taxi licensing, Minister for Local Transport, Simon Lightwood, addressed growing concerns over the impact of the Deregulation Act 2015 on public safety and the livelihoods of local taxi drivers.
The debate, initiated by Harlow MP Christopher Vince, called for urgent reforms to close the loopholes that allow private hire drivers to operate far from the areas in which they are licensed. The Minister acknowledged the concerns raised but urged a careful approach to any potential changes in the regulatory framework.
The Cross-Border Licensing Issue
Vince, supported by a number of MPs, argued that cross-border licensing undermines local standards and jeopardises public safety. The ability for drivers to obtain licences in one area and work in another—often with less stringent checks—has become a pressing issue, particularly for councils such as Harlow, which have long maintained rigorous oversight of their taxi services.
In his response, Simon Lightwood addressed the historical context of the issue. He noted that while the 2015 Act did allow for the subcontracting of bookings to operators licensed by other authorities, it did not create the problem of out-of-area working. This practice, he explained, had existed long before the Act was introduced. However, he recognised that the Act may have made it easier for drivers to exploit licensing discrepancies between districts, contributing to the current challenges.
“The 2015 Act did not enable private hire vehicles (PHVs) to work anywhere,” Lightwood said, adding that the practice of cross-border hiring “was an issue long before the Act”. The Act’s aim was to make it easier for operators to meet customer demand by allowing bookings to be subcontracted across district lines, a practice already in place in London at the time.
Balancing Passenger Safety with Industry Flexibility
While acknowledging the safety concerns raised by MPs, Lightwood was quick to emphasise the importance of balancing regulation with flexibility for the industry. He cautioned against implementing overly restrictive measures, which could have unintended consequences for both passengers and drivers.
“Restricting operations could reduce the availability of services, increasing fares and waiting times for passengers,” he warned. He argued that a rigid framework could lead to more ‘dead miles’—where drivers are forced to travel longer distances without passengers—resulting in higher costs for both drivers and passengers. Furthermore, Lightwood cautioned that restricting drivers to specific areas might push people towards unregulated or informal taxi services, such as those offered via social media, where safety checks are often non-existent.
The Minister acknowledged that while the sector is largely well-regulated, there are gaps that need addressing. He pointed to the national database that records instances of drivers being refused, suspended, or revoked from holding a licence due to safeguarding or road safety concerns. This, he said, is one of the ways in which the Government has already improved oversight of the sector, ensuring that passengers can trust their driver has undergone proper vetting regardless of where they are licensed.
Calls for Enforcement Powers for Local Authorities
A key concern raised by several MPs was the inability of local authorities to effectively police out-of-town drivers. Under the current system, councils are unable to enforce regulations on drivers licensed elsewhere, leaving gaps in enforcement that undermine local standards. Amanda Hack, MP for North West Leicestershire, highlighted the financial strain this places on local authorities, which rely on licence fees to fund enforcement.
Lightwood recognised the frustrations of councils like Harlow, who have struggled to maintain their high standards in the face of increasing cross-border hiring. He admitted that out-of-area working creates enforcement challenges but cautioned that empowering councils to enforce regulations across borders could be complex and costly.
“We are considering numerous options to address these concerns, but I would urge caution,” Lightwood said. “Certain options could have negative consequences for the sector, such as reducing service availability or increasing costs for both drivers and passengers.”
A Collaborative Approach to Reform
Despite his caution, Lightwood did not rule out reforms. He promised to work closely with MPs and local authorities to explore potential solutions, including the possibility of introducing national minimum standards for taxi licensing. This idea, championed by Christopher Vince and other MPs during the debate, would set a baseline for safety and quality across all districts, reducing the incentive for drivers to shop around for the easiest or cheapest licence.
Lightwood also pointed to existing measures that could be more effectively used to tackle the problem. He suggested that local authorities could work together across borders through “co-authorisation agreements”, which would allow one council’s enforcement officers to take action against drivers licensed by another. He also encouraged authorities to use community safety accreditation schemes, which would give their officers the power to pull over vehicles at the roadside for spot checks.
“Our constituents do not live their lives within the boundaries of a local authority area,” Lightwood noted, explaining that a degree of flexibility is necessary to allow passengers to use trusted local operators even when travelling across district lines. However, he reiterated that safety must remain a priority, and the Government would continue to explore ways to ensure consistent standards across the country.
Looking Ahead: Reforms on the Horizon?
The debate highlighted a growing consensus among MPs that reforms are needed to address the unintended consequences of the 2015 Deregulation Act. Vince called for a national framework to standardise licensing across the country, ensuring that drivers operate in the areas where they are licensed and that passengers can rely on the same safety standards regardless of location.
Lightwood, while defending the flexibility offered by the current system, acknowledged that improvements are necessary. He invited MPs to work with the Government and local authorities to identify the most effective reforms, balancing safety, fairness, and the operational needs of the industry.
The Minister also promised to review a report commissioned by former Transport Minister John Hayes, which focused on passenger safety and the relationship between licensing and safeguarding. “I will certainly take a look at the report,” Lightwood said, in response to an intervention from Hayes, signalling that the findings could help inform future changes.
The debate has brought much-needed attention to the state of taxi licensing in the UK. As Lightwood made clear, any reforms will need to carefully consider the potential impact on both passengers and drivers. But with pressure mounting from MPs, councils, and the taxi trade, it seems likely that changes to the system are on the horizon.
For now, passengers are left navigating a patchwork of licensing standards across the country, with MPs pushing for clarity, consistency, and stronger local oversight to protect both drivers and the public. The Government’s next steps will be critical in shaping the future of taxi licensing and ensuring that safety remains at the forefront of the sector.
