Government launches consultation on major overhaul of taxi and PHV licensing

The UK government has opened a consultation proposing to transfer taxi and private hire vehicle (PHV) licensing responsibilities from district councils to local transport authorities (LTAs). The move forms part of the wider English devolution programme, which is reshaping how transport is planned and regulated across larger, strategic areas.

The consultation follows Baroness Casey’s National Audit on Group-Based Child Sexual Exploitation and Abuse, which identified serious safeguarding failures linked to “out‑of‑area” working. The audit warned that inconsistent licensing standards and weak information‑sharing between authorities can allow unsafe drivers to operate with limited oversight. In response, the government has also proposed new national taxi and PHV licensing standards designed to strengthen vetting, improve safeguarding, and ensure consistent protections for passengers.

Ministers have emphasised that the reforms aim to reduce out‑of‑area working and improve passenger safety. In announcing the proposals, the Department for Transport said the changes would help ensure that “wherever a passenger gets into a taxi or PHV, they can be confident that the same robust standards apply.”

Under the proposals, LTAs—such as county councils, unitary authorities and mayoral combined authorities—would become responsible for taxi and PHV licensing across their entire transport area. LTAs already produce statutory local transport plans (LTPs), which set out long‑term strategies for public transport, roads, active travel and accessibility. The government argues that embedding taxi and PHV policy within these plans will allow licensing to be aligned with wider transport priorities, including safety, decarbonisation and network integration.

The central proposal would make every LTA the single licensing authority for taxis and PHVs in its area, replacing the current patchwork of district‑level regimes. The government says this would create more consistent standards, reduce incentives for drivers to seek licences in areas with lighter conditions, and strengthen enforcement across wider geographies.

The predicted impact on licensing authorities includes organisational restructuring, the transfer of staff and systems, and the need for LTAs to build additional capacity for enforcement and compliance. However, the government expects efficiency gains from consolidating licensing functions and reducing duplication.

For the taxi and PHV sector, the reforms would mean dealing with a single licensing body across a larger area, potentially simplifying cross‑boundary operations. Drivers may face more consistent and, in some cases, more stringent standards, particularly around safeguarding and vehicle safety.

Passengers are expected to benefit from improved safety, clearer standards and better integration of taxis and PHVs into wider transport networks. The government also anticipates that LTAs will be better placed to address service gaps, particularly in rural or underserved areas.

The consultation invites responses from the taxi and PHV trade, licensing officers, transport regulators, passenger groups and the wider public. Responses can be submitted through the online form on the consultation webpage.  The Institute will consult with its members in due course.