Mayor of Greater Manchester supports newly unveiled ‘White Paper’ that could curb taxi cross border worries
Updated: Dec 22, 2024
The Greater Manchester Mayor has supported the Government’s newly unveiled White Paper which could herald significant changes for the taxi and private hire industry, addressing long-standing concerns over cross-border licensing.
The proposals, which form part of the broader devolution agenda, aim to streamline the licensing process and improve enforcement, with a specific focus on tackling ‘out-of-area working’.
According to Manchester Evening News, the Greater Manchester Mayor Andy Burnham has voiced strong support for the move, describing it as a “step forward” for the sector. Cross-border licensing has become a contentious issue in areas like Greater Manchester, where vehicles licensed under more lenient conditions in other areas frequently operate. This, Burnham argues, compromises public safety and weakens local authorities’ ability to regulate vehicle numbers.
In particular, Burnham has long highlighted the high volume of Wolverhampton-licensed vehicles operating in Manchester city centre on weekends. He said the current system leaves local authorities unable to control these vehicles, creating congestion and raising concerns about inconsistent standards, including criminal records checks.
The Proposals in Detail
The White Paper outlines plans to transfer taxi and private hire vehicle licensing responsibilities to Local Transport Authorities (LTAs), including newly formed Strategic Authorities. This would see licensing decisions made over a larger geographical area, aiming to ensure consistent standards and enforcement.
According to the document, the Government recognises the vital role taxis and private hire vehicles play in public transport networks, particularly for vulnerable groups. However, it also acknowledges mounting concerns about out-of-area working and the lack of uniformity in licensing standards across the country.
Under the current system, drivers often seek licences in regions with lower fees or less stringent requirements, even if they primarily work elsewhere. The White Paper argues that administering licensing at the LTA level would improve consistency, create economies of scale, and enhance enforcement capabilities across wider functional economic areas.
London already operates under such a system, with Transport for London overseeing all taxi and private hire vehicle licensing. The Government is using this as a model for the proposed reforms, which it says could reduce the incentive for drivers to seek out-of-area licences and help authorities manage local road networks more effectively.
The proposals mark a significant departure from the status quo, and the Government has committed to working closely with stakeholders to assess the potential impacts before making a final decision.
Cross-Border Licensing: A Divisive Issue
Cross-border licensing has been a persistent source of tension within the taxi and private hire trade. Under existing laws, once a driver obtains a licence in one local authority, they are legally permitted to operate anywhere in England and Wales.
Supporters of this system argue it provides flexibility and reduces unnecessary bureaucratic hurdles, particularly for drivers who live near local authority boundaries or work across multiple areas. However, critics contend that it undermines local standards and creates enforcement challenges for councils, especially in regions with stricter licensing regimes.
In Greater Manchester, for example, Burnham and other local leaders have expressed frustration at their inability to regulate vehicles operating within their jurisdiction but licensed elsewhere. This includes ensuring compliance with stricter standards for vehicle condition, driver background checks, and local knowledge requirements.
The influx of out-of-area vehicles has also led to concerns about congestion, particularly in city centres. Burnham noted that on weekends, Manchester sees a surge of vehicles licensed in Wolverhampton, where licensing processes are often perceived as less rigorous. This has created a sense of unfairness among local drivers, who must adhere to tougher and more costly regulations while competing for business.
Potential Benefits of Reform
By transferring licensing responsibilities to LTAs, the Government aims to address these disparities and create a level playing field. A larger-scale licensing framework could ensure that drivers and operators meet consistent standards, regardless of where they are based or work.
Such a system could also simplify enforcement by providing authorities with clearer jurisdiction over all vehicles operating in their area. This would make it easier to tackle illegal or unsafe practices and improve public confidence in the safety and reliability of taxi and private hire services.
The White Paper’s proposals are likely to spark significant debate across the sector. While many local authorities and trade representatives will welcome the prospect of greater consistency and stronger enforcement, some drivers and operators may be wary of increased regulation and potential costs.
For now, the Government has committed to consulting widely with stakeholders to ensure the reforms strike the right balance. This will include understanding the impact on drivers, operators, and local communities.
