Wolverhampton Council discusses private hire vehicle licensing ‘growth and risk’ as cross border numbers surge
Updated: Oct 10
A Wolverhampton council report has detailed concerns around potential risks associated with its ongoing growth in the private hire vehicle licensing market.
The report on Private Hire Vehicle Growth for the Audit and Risk Committee, dated 23 September 2024, outlines the City of Wolverhampton Council’s approach to mitigating risks associated with the rapid growth in private hire vehicle (PHV) licences.
The report clarifies that cross-bordering is not a loophole but an intended feature of the legislation. It allows private hire vehicles to operate across multiple jurisdictions, enabling greater flexibility in service provision, but also raising safety and compliance concerns.
Since 2015, when the Deregulation Act came into force, the number of private hire drivers licensed by Wolverhampton has surged dramatically. As of July 2024, the council licenses 45,104 PHV drivers, 30,159 vehicles, and 417 operators. This growth is largely attributed to Wolverhampton’s investment in a streamlined digital licensing process. The council implemented an online application system in 2016, which allowed applications to be submitted 24/7 from across the country.
The digitisation programme, including online payments and application tracking, removed many administrative burdens, making Wolverhampton a preferred choice for applicants nationwide. The council’s removal of certain requirements, like mandatory in-person doctor visits and council-specific MOT testing, further simplified the process, contributing to this influx.
The report highlights that the significant growth in PHV licences, has led to a series of potential public safety risks for the City of Wolverhampton Council.
One of the primary concerns is the use of licensed vehicles as cover or ‘camouflage’ for illegal activities, such as child sex exploitation, as seen in high-profile cases in other regions like Rotherham and Telford. The increased number of drivers and vehicles licensed through Wolverhampton means the potential for these risks is heightened, the report states.
To counter these risks, the council has implemented stringent safeguards. These include enhanced Disclosure and Barring Service (DBS) checks, daily monitoring of driver records, and mandatory driver training on safeguarding issues such as child exploitation and modern slavery. Wolverhampton is the only authority to conduct daily DBS checks on its drivers, ensuring any new criminal activity is flagged promptly.
The council conducts regular compliance operations across the UK to ensure that drivers adhere to licensing regulations. In 2023 alone, these operations resulted in 184 vehicles being suspended. However, the sheer number of licensees increases the likelihood of non-compliance, and the geographical spread of the licensees complicates enforcement efforts.
Due to the large number of licences issued, Wolverhampton has come under national scrutiny. Concerns have been raised that the council’s approach may have unintended consequences, such as attracting drivers from areas with less stringent safety checks, undermining local licensing authority standards.
The report highlights that while Wolverhampton’s licensing system has been successful in attracting applicants and improving efficiency, it has also amplified public safety concerns due to the sheer volume of licences issued. The council continues to lobby for legislative reforms to introduce uniform licensing standards across the country to mitigate these risks.
