How could the Government's devolution White Paper CHANGE taxi and private hire vehicle licensing across England?
Whilst still early doors, proposals laid out in a recent government devolution White Paper could lead to sweeping changes in how taxi and private hire vehicle (PHV) licensing is handled across England.
If adopted, these measures could address longstanding challenges while creating a new regulatory framework for operators, drivers, and passengers.
Centralising Licensing Powers
Currently, taxi and PHV licensing is overseen by local councils, resulting in significant inconsistencies. With no defined national standard, enforcement varies widely, with some councils criticised for offering less rigorous oversight.
The proposal to shift these powers to larger Local Transport Authorities or Strategic Authorities could lead to uniform standards across regions. This would eliminate the ability of operators to exploit lenient councils by enforcing consistent rules nationwide. However, smaller councils are expected to resist losing control, and creating a cohesive framework could take time.
Strengthening Enforcement
Local councils often struggle to enforce licensing rules, particularly against vehicles operating outside their jurisdiction. The creation of larger authorities with extended enforcement powers could address this issue.
This reform could improve passenger safety by ensuring thorough regular vehicle inspections and uniform driver licensing standards. By increasing compliance, authorities would be better positioned to tackle rogue operators and out-of-area vehicles undermining local standards.
Economies of Scale
Licensing processes differ in efficiency, with some councils better equipped than others to handle demand. Centralising licensing under larger authorities would allow resources to be pooled, improving technology adoption and administrative efficiency.
This could lower licensing costs for operators and drivers while delivering a streamlined licensing system. However, stricter standards may meet resistance from drivers accustomed to more lenient processes.
Addressing Cross-Border Licensing
Exploiting licensing loopholes has long been a concern, with drivers registering vehicles in more lenient areas and working elsewhere. Standardising enforcement across larger regions could help close these gaps, restoring local control over vehicle numbers and standards.
While drivers may face limitations on where they can operate, passengers could benefit from a safer and more reliable service.
Learning from London
Transport for London (TfL) has been highlighted as a potential model for nationwide licensing reform. Implementing similar regimes across the country could raise industry standards but may also burden smaller drivers with higher compliance costs and more licensing red tape.
Drivers licensed under lenient councils may need to invest in additional training, vehicle upgrades, or compliance checks. While this could present financial challenges, a unified licensing framework might simplify processes and improve public trust in the industry.
Depending how they are implemented, these proposals could represent the most significant overhaul of taxi and PHV licensing in decades. Balancing efficiency, fairness, and stakeholder engagement will be critical to achieving the aims of improving safety, reducing loopholes, and restoring confidence in the sector.
