Government announces major taxi and PHV reform Bill in King’s Speech

The Government has announced a draft Taxi and Private Hire Vehicle (PHV) Bill in the King’s Speech, setting out the most significant overhaul of taxi and PHV legislation in more than a century. Ministers say the reforms will modernise an outdated and fragmented system, strengthen public safety, and ensure passengers receive consistent, reliable services wherever they travel in England.

The Government’s draft legislation sets out a wide-ranging package of reforms including:

• Modernise taxi and private hire law for the way people travel today, replacing a patchwork of outdated, Victorian-era rules with a single, consistent framework across England that passengers and drivers can trust.

• Deliver on the commitment to legislate in response to Baroness Casey’s National Audit on Group-based Child Sexual Exploitation and Abuse by:
  • Fixing a fragmented system that has not always protected passengers as it should.
  • Strengthening public safety and accountability through clear requirements for obtaining and holding licences.
  • Improving the efficiency of licensing and enabling strong, consistent enforcement powers.
  • Matching funding for enforcement to where services are delivered.

• Give regulators stronger enforcement powers so swift and effective action can be taken when drivers or operators breach licence conditions, helping to drive up standards and tackle poor or unsafe practice.
• Improve transparency and information-sharing nationwide by mandating use of a national database of all licensed vehicles, drivers and PHV operators, so licensing authorities can better protect the public and passengers can have greater confidence in the system.
• Deliver more accessible services for disabled passengers by strengthening existing protections and removing barriers to travel, helping ensure people who rely most on taxis and PHV are not left behind.
• Provide a consistent customer experience wherever people travel, so passengers can expect safe, reliable and properly regulated services whether travelling locally or long distances across local authority boundaries.
• Support a thriving, professional sector by creating clearer rules to enable fair competition, while supporting the wider economy (including the night-time economy, shift workers and local businesses).
• Overall, the measures seek to create a modern, joined-up taxi and PHV system where people are confident in their safety and experience wherever they travel, and where the powers, data and accountability sit in the right place to act when standards fall short.

Context and key facts

The Government says reform is urgently needed to address long‑standing weaknesses in the regulatory framework. Taxi and PHV laws outside London still rely heavily on the Town Police Clauses Act 1847, legislation written for horse‑drawn cabs. Incremental updates over time have created a complex, inconsistent system that struggles to keep pace with a national, app‑driven market.

The sector continues to grow. As of 1 April 2024, England had 313,000 licensed vehicles and 381,100 licensed drivers, with demand increasingly shaped by digital booking platforms and cross‑border working.

Key statistics underline the importance of effective regulation:

• Disabled passengers, women, lower‑income households and people without access to a car rely disproportionately on taxis and PHVs.
• People with mobility difficulties make almost 70% more taxi or PHV trips per year than those without.
• Households in the lowest income quintile make around 50% more trips than higher‑income households.
• 8% of all journeys are for education, including SEND transport.
• 52% of trips support economic activity, education or essential services.

Major safeguarding reviews, including those led by Baroness Casey, have repeatedly highlighted vulnerabilities in the current system—particularly inconsistent oversight, weak cross‑border enforcement and barriers to information sharing. The Bill’s proposals for a mandatory national database and stronger enforcement powers are intended to address these structural risks.

The draft legislation will extend to England and Wales, but apply only in England. Wales will not be covered by the reforms, though the Welsh Government may consider its own future changes.

Commenting on the announcement, IoL President, James Button, said:

“The announcement that the Government will proceed with a Bill to reform taxi and private hire licensing is welcomed. Reform is long overdue, with significant opportunities missed over the past two decades, including the Law Commission review and the Task and Finish Group report.

Comprehensive, modern legislation is needed to deliver a cohesive and consistent licensing framework fit for the 21st century—one that strengthens public safety, supports a thriving industry, and ensures that Hackney carriages and private hire vehicles remain a vital part of the public transport network.

“The Institute of Licensing welcomes this commitment to reform and looks forward to contributing to the development of the new legislation.”