Government Considers Centralizing Taxi and PHV Licensing

The UK Government is preparing to consult on a transformative proposal that could see taxi and private hire vehicle (PHV) licensing transferred from local councils to regional Local Transport Authorities (LTAs). This strategic shift, announced by the Department for Transport (DfT), aims to streamline operations and address inconsistencies in the licensing process across England.

Under current regulations, district and borough councils are responsible for licensing drivers and operators. However, this fragmented system has led to challenges, including the controversial practice of cross-border hiring, where drivers obtain licenses from areas with less stringent requirements and work elsewhere. This loophole has raised concerns about enforcement, safety standards, and fairness in the industry.

DfT Minister Simon Lightwood stated:

"The Department for Transport will consult shortly on whether to make all Local Transport Authorities responsible for taxi and private hire vehicle licensing. We believe administering the regime at this higher level would increase the consistency of standards and enable more effective use of enforcement powers."

Centralizing licensing responsibilities could also improve resource allocation and technological integration, offering economies of scale that smaller councils may struggle to achieve. These efficiencies could lead to enhanced oversight and better public trust in the sector.

Lightwood further commented:

"Addressing these issues should reduce the factors that induce people to licence out of their usual working area."