Licensed trade bodies join the growing calls for taxi and private hire licensing reform

A coalition of taxi and private hire trade bodies across England has intensified calls for urgent reform of the licensing framework, citing outdated legislation, inconsistent standards, and enforcement challenges.

In recent submissions to MPs, organisations including the Licensed Taxi Drivers’ Association, United Cabbies Group, National Private Hire and Taxi Association, and unions such as Unite and GMB have outlined three core priorities: tackling cross-border hiring, establishing national licensing standards, and defining plying-for-hire in statutory terms.

Cross-border hiring remains a central concern, with trade bodies warning that drivers licensed in one district often operate predominantly in another, undermining local oversight and enforcement. The rise of app-based ride-hailing platforms has exacerbated this issue, enabling vehicles licensed hundreds of miles away to accept bookings in urban centres. To address this, the sector is advocating for the “start-or-finish” rule—also known as the ABBA principle—requiring that every journey begins or ends in the licensing area of the driver and operator. Additional proposals include mandatory geo-fencing to restrict app visibility outside licensing zones and national enforcement powers to allow local officers to inspect any vehicle operating in their district.

Trade bodies also stress the need for consistent national standards across England’s more than 200 licensing authorities. Variations in requirements—such as safeguarding training, English language assessments, and in-car CCTV—have led to licence shopping and weakened public confidence. A national baseline, they argue, would ensure uniform protections while allowing local authorities to impose higher standards where necessary. Furthermore, unions are calling for driver welfare measures, including fair pricing structures and the ability for councils to cap private hire vehicle numbers in saturated markets.

The third major reform area is the legal definition of plying-for-hire. Currently governed by case law, the distinction between taxis and private hire vehicles has become increasingly blurred due to app technology. Trade groups are urging Parliament to legislate a modern definition that preserves the exclusive right of taxis to accept immediate hires via street hail or rank, while ensuring private hire remains strictly pre-booked.

These calls echo similar calls from the Institute of Licensing (IoL), which has submitted multiple pieces of evidence to the Transport Committee’s inquiry into taxi and private hire licensing.

The IoL has highlighted fragmented standards, cross-border loopholes, and outdated legislation as key barriers to effective regulation. It supports national suitability guidance, improved police data sharing, and mandatory use of the national register (NR3S) to enhance safeguarding. The IoL also opposes transferring licensing powers to regional transport authorities, emphasising the importance of local accountability.