The taxi trade is recognised as ‘flexible transport services’ for rural areas, says transport minister

Taxi services are seen as a solution to reduce the pressure on bus routes in sparsely populated areas. With decreasing passenger numbers and limited funding, rural bus services are struggling to stay viable, creating significant mobility challenges for communities.

Lord Stevenson of Balmacara recently questioned the role that rural taxis might play in addressing this issue. He asked whether they could help alleviate the burden on under-resourced bus routes, especially in low-population areas, and contribute to improved environmental outcomes.

Responding, Lord Hendy of Richmond Hill, the Transport Minister, highlighted that taxi and private hire vehicle policy falls under devolved administration across the UK. He acknowledged that the flexibility offered by taxis and private hire vehicles could indeed fill transport gaps, particularly in rural communities, a point supported by the Department for Transport's guidance to local licensing authorities in England.

This topic is also being explored in practice through the Rural Mobility Fund's demand responsive transport (DRT) minibus pilot scheme. The initiative is being tested in 14 local authorities, looking into whether DRT services can be a feasible transport solution in rural and suburban regions, either as standalone services or alongside other forms of public transport. A comprehensive evaluation process, which includes both impact and procedural assessments, is underway, with the final report expected next year.

As the Government seeks ways to improve transport in rural areas, the potential for taxis to play a greater role in easing the strain on the bus network is one that may gain traction. For rural residents, any solution that offers consistent, affordable, and environmentally efficient transport is a step in the right direction.

Lord Hendy of Richmond Hill, Transport Minister, replied: “Taxi and private hire vehicle policy is a devolved matter in all UK nations. The role the trade can play in providing flexible transport services, especially in rural areas, is recognised in Department for Transport guidance issued to licensing authorities in England.

“The Rural Mobility Fund demand responsive transport (DRT) minibus pilot, currently underway in 14 different local authorities, is exploring whether DRT can provide a solution in rural and suburban areas, either alone or in conjunction with other services. A comprehensive monitoring and evaluation process is in place, consisting of a process evaluation and an impact evaluation.  The final process evaluation report is due next year.”