Ministerial Roundtable discusses Taxi and Private Hire Reform

IoL President James Button attended a Ministerial Roundtable meeting (on 19th May 2026) as a representative of the Institute of Licensing to discuss legislative reform of taxi and private hire licensing.

The meeting, convened by Lillian Greenwood MP, Minister for Local Transport, brought together Department for Transport (DfT) officials, local authority representatives, industry stakeholders—including both traditional operators and app-based platforms—and accessibility advocates such as Guide Dogs.

Key issues under discussion

The roundtable focused on longstanding challenges within the sector, including licensing standards, cross-border working, enforcement powers, and resourcing. Participants highlighted that while reform is needed, the majority of licensed drivers continue to deliver a safe and reliable service to the public.

Public safety emerged as a central theme, with attendees agreeing it must remain the cornerstone of any future legislative changes—covering both passengers and industry professionals, particularly drivers.

Cross-border working and national standards

Cross-border licensing—often driven by differing application costs and processing times—was identified as a key concern. Delegates broadly supported the idea that drivers should primarily operate within the area where they are licensed, but agreed that nationally set processing times, costs and standards will be the best means of addressing licence shopping.

Funding, fees and enforcement

On costs, there was a discussion in relation to licence fees and whether there would be benefit to nationally set fees (set at a standard which allows sufficient activity both administrative and enforcement, unlike the Licensing Act where almost all local authorities have to subsidise the process).

All agreed that cross-border enforcement powers were required and may need to be improved beyond those contained in the English Devolution and Community Empowerment Act.

Structural reform under consideration

More ambitious reform options were also raised, including the possibility of a single national private hire regulator and reviewing whether the current two-tier system (separating taxis and private hire vehicles) remains fit for purpose.

There was little discussion as to whether taxi and private hire licensing should remain with local authorities or move to local transport authorities.

Accessibility challenges

Improving accessibility—particularly increasing the number of wheelchair-accessible vehicles—was recognised as a priority, though cost remains a major barrier.

Participants noted that that whilst the discussion clearly saw taxi and private as part of the public transport network, unlike other parts of the public transport network, taxi and private hire services receive no subsidy, raising questions about how accessibility targets could realistically be funded.

 

Consumer protection and VAT reform

On consumer protection, there was consensus that customers should contract with the operator rather than individual drivers. This could provide greater clarity and protection but may require changes to the current VAT regime, potentially allowing private hire journeys to be zero-rated.

James Button, President of the Institute of Licensing, said:

“This was a constructive and wide-ranging discussion on the future of taxi and private hire regulation. It was encouraging to see broad agreement on the importance of public safety and the need for national consistency in standards and enforcement.

While there are complex challenges—particularly around cross-border working, funding and accessibility—there is a clear willingness across all stakeholders to work collaboratively toward a fairer and more effective system. Meaningful reform will require careful balancing of national consistency with local accountability, but this roundtable marks a positive step forward in that process.

I know that all our members will hope that this initiative is successful in providing the vital wholesale reform of taxi and private hire law that is so necessary.”

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