The Government has published its response to the Transport Committee’s report on taxi and private hire vehicle (PHV) licensing, confirming plans for a draft Taxis and Private Hire Vehicles Bill and setting out its position on a series of recommendations aimed at improving consistency, safeguarding, enforcement and accessibility across the sector.
Responding to the Committee’s report, Raising the standard: licensing of taxis and private hire vehicles, the Government said reform comes at a “pivotal time” and will support wider commitments to strengthen safeguarding and address recommendations arising from the Casey Review. It confirmed that a draft Bill will be published for pre-legislative scrutiny and will seek to improve consistency across licensing frameworks while maintaining a safe and accessible service for passengers.
On the Committee’s recommendation that reform should build on the Law Commission’s 2014 draft Bill and the Task and Finish Group’s work, the Government said it agreed that the Law Commission’s proposals provide a strong foundation for reform. It also accepted that there should continue to be a clear distinction between taxis and PHVs, while drawing on recommendations from both reports when developing legislation. The Government acknowledged that the two reviews reached different conclusions on several issues, including restrictions on out-of-area working and the degree of national consistency that should be introduced.
The Government’s response also addressed concerns about extensive out-of-area working. The Committee had called for measures to encourage drivers to be licensed where they primarily operate and to make enforcement more effective. The Government accepted that out-of-area working has contributed to inconsistent standards, enforcement challenges and incentives for licence shopping. It said proposals for national standards and consultation on transferring licensing functions to Local Transport Authorities could help address those issues.
The response highlights recent legislative changes intended to strengthen enforcement powers. Under provisions introduced through the English Devolution and Community Empowerment Act, local authorities will be able to suspend licences immediately in the interests of public safety regardless of where a driver is licensed. The Government said guidance would be issued to support consistent use of those powers.
However, ministers stopped short of backing significant restrictions on cross-border working. The response notes that taxis and PHVs are often essential for journeys that cross administrative boundaries and warns that tighter restrictions could reduce vehicle availability, increase waiting times and affect access to transport, particularly in less well-served areas. The Government said any reforms would need to balance passenger safety, safeguarding and effective regulatory oversight with the need to maintain a reliable service.
The Committee also recommended that the Department for Transport publish a comparative appraisal of different licensing models following consultation on transferring licensing responsibilities to Local Transport Authorities. The Government accepted this recommendation and confirmed that its response to the consultation will consider a range of approaches, including Local Transport Authority-based licensing and more nationally consistent arrangements. The assessment will examine how different models could improve consistency, better align licensing and enforcement functions, and reduce incentives for out-of-area working.
Overall, the response signals support for greater national consistency in taxi and PHV licensing, while leaving open key questions about the future structure of licensing authorities and the extent to which cross-border working should be restricted. Further detail is expected when the Government publishes its consultation response and draft legislation later this year.