Burnley council maintains taxi licence fees amid income drop linked to cross-border migration

Burnley Council has voted to keep taxi licensing fees at current levels for the 2025/26 financial year, despite mounting financial pressures on the service.

The Licensing Committee’s decision comes amid a continuing decline in local licence applications, driven in part by cross-border licensing trends and the rise of app-based private hire operators.

On 3 July, councillors reviewed a detailed report outlining the financial strain facing the licensing service. Since 2015, the council has budgeted for £142,000 in annual taxi licensing income. However, this target has proven increasingly difficult to meet—falling short by £63,000 in the 2024/25 cycle.

The key issue stems from drivers opting to register with other local authorities that offer lower costs and more relaxed requirements. These include fewer vehicle tests, reduced training standards, and broader vehicle age limits—all attractive incentives compared to Burnley’s existing policies.

In response, Burnley Council has introduced cost-saving measures that have reduced service expenditure by £56,000. Most of these savings come from staffing changes and scrapping fees for services that are now provided free of charge. Despite these efforts, revised income projections stand at just £75,000 against recoverable costs of £98,000—leaving a £23,000 budget deficit.

The Committee is now assessing further policy changes to attract more drivers to license locally. Options under consideration include adjustments to vehicle specifications, knowledge tests and age limits for hackney carriages. However, officers urged caution, emphasising that current standards are designed to protect public safety.

The discussion also touched on wider reform possibilities. The Government’s English Devolution White Paper proposes shifting taxi licensing responsibilities from district councils like Burnley to regional transport bodies. Such a move could help eliminate inconsistencies across localities and create a more unified system.

In anticipation of these reforms, Burnley Council aims to collaborate with neighbouring authorities and central government to develop a more sustainable model for taxi licensing funding—one that maintains core safety standards while offering competitive appeal.

Source: TaxiPoint