Government pledges reform on taxi licensing amid safeguarding concerns

The UK government has committed to introducing legislation to address inconsistencies in taxi and private hire vehicle (PHV) licensing standards, following renewed concerns about passenger safety and child protection.

The move comes in response to findings from the recent Casey Review, which highlighted links between some taxi services and group-based child sexual exploitation.

Speaking in the House of Commons, Labour MP for Tipton and Wednesbury Antonia Bance raised concerns about the disparity in licensing practices across local authorities.

She cited Wolverhampton as an example, where taxi licence applications are reportedly processed more quickly and at lower cost than in other areas. Bance questioned what steps the government would take to ensure all local licensing meets high safeguarding standards.

Transport Secretary Heidi Alexander acknowledged the seriousness of the issue, stating that the government is committed to holding local authorities accountable for compliance.

“Baroness Casey has rightly brought this issue into sharp focus and we’ve committed to legislating this issue,” she said. “We will work as quickly as possible and consider all options including out-of-area working, national standards and enforcement, seeking the best overall outcome for passenger safety.”

The Casey Review, commissioned by the Prime Minister in January to investigate grooming gangs and child sexual abuse, dedicated a chapter to the role of taxis in exploitation cases. It found that in a minority of instances, taxis were used by perpetrators both to meet victims and to transport them to different locations. The review warned that a “lack of stringency” in licensing allows drivers to obtain licences from boroughs with less rigorous checks, potentially undermining safeguarding efforts.

Baroness Casey urged the government to close these regulatory loopholes, warning that “unscrupulous” individuals could exploit the current system by applying for licences in more permissive jurisdictions.

Under current law, licensed taxi and PHV drivers can operate anywhere in England and Wales, regardless of where their licence was issued. This has led to a concentration of licence holders in certain areas.

A report by Taxi Point revealed that 96% of taxi and PHV licences issued by the City of Wolverhampton Council between April 2023 and March 2024 were granted to applicants living outside the city.

In response to criticism, a spokesperson for the council stated that safeguarding is its “number one priority” and noted that Wolverhampton was the first authority to implement the government’s statutory standards and best practice guidance. The council also clarified that it is legally prohibited from refusing licence applications based on an applicant’s residence or from capping the number of private hire licences issued. Additionally, all licensing fees are ring-fenced and cannot be used for unrelated council activities.