Government rejects London Assembly’s call to cap private hire vehicle numbers

The UK government has rejected calls from the London Assembly to grant Transport for London (TfL) powers to cap the number of private hire vehicles (PHVs) operating in the capital. The decision comes amid growing concerns over congestion, pollution, and the impact of ride-hailing services on the city’s transport infrastructure.

In a letter to the London Assembly, the Department for Transport (DfT) confirmed it would not pursue legislative changes to allow TfL to limit PHV numbers. Ministers argued that such a cap could restrict consumer choice and undermine competition, particularly affecting passengers who rely on affordable transport options. The government maintains that existing licensing frameworks are sufficient to manage safety and standards across the sector.

The London Assembly had urged the government to reconsider, citing a dramatic rise in PHV numbers over the past decade. Assembly members warned that the surge—driven largely by app-based platforms like Uber and Bolt—has contributed to increased traffic and environmental harm. They also raised concerns about the working conditions of drivers and the strain on regulatory oversight.

Mayor Sadiq Khan has previously voiced support for a cap, arguing that TfL should have the same powers as other cities, such as New York, which have implemented limits to manage urban transport challenges. TfL currently licenses over 100,000 PHVs, a figure that has more than doubled since 2013.

The government’s refusal to devolve these powers has sparked criticism from Assembly members and transport campaigners. Caroline Pidgeon, a Liberal Democrat Assembly Member, described the decision as “deeply disappointing,” adding that Londoners are paying the price for unchecked growth in the sector.

Meanwhile, the BBC reports that the issue continues to divide stakeholders. Ride-hailing companies argue that caps would stifle innovation and harm drivers’ livelihoods, while environmental groups and some local councils support tighter controls to reduce emissions and improve road safety.