Will a new Government consider capping private hire vehicle numbers?
- Perry Richardson
- Oct 30, 2024
- 2 min read
The rapid rise in private hire vehicles (PHVs) across UK roads has become a growing concern, prompting repeated calls for regulatory changes from regions most hit. With an increasing number of PHVs, particularly driven by the popularity of ride-sharing apps, there has long been mounting pressure on governments, past and present, to consider a cap.
Despite ongoing debate, the legal framework remains unaltered, leaving many questioning why no steps have been taken to address the issue.
Paul Elliott, representing the Department for Transport (DfT), recently spoke on this matter, shedding light on the complexities involved. He clarified that licensing authorities in England currently do not have the power to impose limits on the number of PHV licences they issue. This restriction has left many industry figures and local councils frustrated, as they are unable to respond to the surge in PHVs, which continues to affect traditional taxi drivers and local transport infrastructures.
In contrast, authorities outside London can limit the number of hackney carriage licences issued, provided they can demonstrate there is no significant unmet demand. This power, however, is rarely exercised, despite its availability under hackney carriage legislation. The DfT argues that caps on PHVs could lead to reduced availability and longer waiting times for passengers, suggesting that restrictions may not be in the public’s best interest.
One of the key distinctions between hackney carriages and PHVs lies in how they operate. Hackney carriages, more commonly known as taxis, can be hailed on the street or found at designated ranks, whereas PHVs must be pre-booked via licensed operators. Under the existing Roads Traffic Act 1985, licensing authorities are permitted to restrict the number of hackney carriages operating in their area, but there is no equivalent provision for PHVs.
Section 16 of the Act provides the legal framework for limiting hackney carriage numbers, stating that a licence can only be refused if authorities are satisfied that significant unmet demand exists in the area. This allows for a controlled balance between supply and demand for taxis, helping to ensure that over-saturation does not occur.
However, with no such framework in place for PHVs, their numbers have been growing steadily, exacerbated by the rise of app-based ride-hailing services like Uber.
The unchecked growth of PHVs has led to various challenges. Traditional taxi drivers face increased competition and falling demand for their services, as more passengers turn to app-based options. Additionally, concerns about congestion and. environmental impact have been raised, as urban areas struggle to accommodate the increasing number of vehicles. Many argue that limiting PHV licences would help ease these issues and create a more level playing field for taxi drivers, while reducing the strain on local infrastructure.
Despite the growing calls for reform, the Government has so far remained quiet over any potential future changes. The DfT has maintained its position that imposing caps on PHVs could harm passengers by reducing the availability of affordable and convenient transport options.
The question remains whether this new government may finally take action. Industry representatives and taxi drivers are hopeful that new leadership could lead to a shift in policy, allowing authorities to better regulate the number of PHVs on the road. However, with the legal framework deeply entrenched and concerns over the potential impact on passengers, any
significant change seems far from certain.
