Not long after the House of Commons Transport Committee issued its report calling for a modernised taxi and private hire vehicle licensing framework that reflects the scale and influence of app-based operators Mr Burnham has stepped into office.
Andy Burnham has championed intervention from politicians into taxi licensing whilst Mayor of Manchester, will this translate into legislative change for the Private Hire and Taxi industry?
With Andy Burnham as Prime Minister, taxi and private hire firms should probably expect a more interventionist, locally accountable licensing regime rather than a light-touch continuation of the current system. He has repeatedly described England’s taxi/PHV framework as “broken” and has pushed to end or restrict “out-of-area” licensing.
However, whilst this was cited as a major project for Burnham as mayor with national issues of defence, health, the treasury and justice on his hands he may well find this slips down the agenda.
The parliamentary committee though is up and running and has recently published it’s report highlighting the major concerns. The Committee’s report, Raising the standard: licensing of taxis and private hire vehicles, is one of the clearest indications yet that the regulation of taxis and private hire vehicles (PHVs) is likely to change materially.
Its central message is straightforward: the market has modernised faster than the law. Ride-hailing apps, cross-border booking models and nationally recognisable platform brands have reshaped how passengers book journeys and how drivers obtain work. Yet the core licensing framework still rests on legislation that was not designed for today’s technology-led operating models.
More than 260 licensing authorities currently apply their own standards, with variations across driver checks, vehicle requirements, accessibility, local knowledge testing, CCTV policies and complaint processes. That fragmentation matters because app-based operators do not fit neatly within the geographical assumptions of the older regime.
Cross-bordering (which allows working across licensing authorities) has become commonplace with Wolverhampton becoming the licensing authority of choice for many operators and drivers. Andy Burnham has spoken loudly of his desire to see more localised “licence where you operate” rules.
Burnham has argued that drivers and vehicles should not be licensed hundreds of miles away from where they mainly work, because it weakens local enforcement and accountability.
This would particularly affect PHV operators relying on large pools of out-of-area licensed drivers. One Manchesterism he was keen to introduce as mayor was more local or regional control over private hire licensing allowing combined authorities more power over taxi and private hire standards, enforcement, accessibility and vehicle conditions.
The Government has already indicated its intention to legislate for national minimum standards. The Committee welcomes that direction but warns against standards becoming “low by default”.
Whilst Burnham previously highlighted concerns on out of area work causing harm to livelihoods and public safety the Committee acknowledges that outright prohibition of out-of-area working would be impractical.
The report though accepts that extensive out-of-area working can undermine local accountability and make enforcement harder. It also points to concerns about licence shopping, where drivers or operators may be incentivised to obtain licences from authorities perceived to be faster, cheaper or less onerous.
What future licensing conditions may cover
The Committee’s recommendations give a useful indication of where future licensing conditions may land. Operators should pay particular attention to enhanced DBS checks, safeguarding training, clearer “fit and proper” decision-making, police and licensing authority information sharing, a mandatory national database, potential in-vehicle CCTV, disability awareness training, wheelchair-accessible vehicle provision and a single national complaints portal.
Preparing for the future?
A Burnham premiership is unlikely to mean deregulation for taxi and private hire firms. Based on his Greater Manchester record, it would more likely accelerate reform towards local accountability, tougher controls on out-of-area licensing, stronger enforcement powers and a more integrated view of taxis as part of the public transport system.
For traditional taxi firms, that may be welcome. For national (especially app based) private hire platforms, it would require early engagement, stronger compliance infrastructure and a clear case for how digital operating models can support, rather than undermine, local standards.
The Committee appears committed to engaging with reforming the sector. The detail of any new licensing conditions will matter. However, operators do not need to wait passively for legislation. A sensible first step is to map current compliance systems against the Committee’s likely reform themes: driver checks, document expiry, complaints handling, serious incident escalation, licensing authority liaison, accessibility, cross-border working, data governance and audit trails.
Our view
The report does not signal the end of flexible private hire operating models. It signals the end of any assumption that those models can continue to be regulated by implication under a framework designed for a different era. This view is likely to be charged by the premiership of Andy Burnham who has already engaged with the issue in his time as Manchester Mayor. Change is coming.
The most effective operators will be those that treat reform as a strategic opportunity rather than a defensive compliance exercise. By engaging early, demonstrating strong governance and helping shape practical national standards, platforms can protect the flexibility that passengers and drivers value while supporting the higher, more consistent safety standards that Government and Parliament are now clearly seeking.
Speak to our solicitors
If you have a matter that requires legal support, our solicitors advise transport, logistics and licensing clients on complex regulatory, commercial and operational issues.
For taxi and PHV operators, app-based platforms, fleet businesses and licensing stakeholders, early preparation may make the difference between reacting to new conditions and helping to shape them.
Key Contacts
Layla Barke-Jones
Dispute Resolution Partner
Layla is an experienced Partner in our Dispute Resolution team with a particular interest in Warehouse and Logistics law.
