Peers debate licensing reforms in Devolution Bill after second reading

The English Devolution and Community Empowerment Bill has cleared its second reading in the House of Lords, triggering an extensive debate over the Bill’s proposed licensing reforms, particularly those concerning taxi and private hire vehicle regulation.

The Bill, intended to expand devolution and strengthen local governance across England, introduces new powers enabling the Secretary of State to establish national minimum standards for taxi and private hire licensing. During the 8 December debate, peers examined these provisions closely, reflecting long-standing concerns from local authorities about inconsistent regulatory standards and enforcement challenges.

The Government, represented by Baroness Taylor of Stevenage, positioned the reforms as a means to address fragmentation across the country. She argued that national minimum standards covering driver vetting, safety compliance, vehicle specifications and operator conduct would help ensure consistent protection for passengers irrespective of where they travel in England. Addressing the issue of “out-of-area working” — where drivers operate primarily outside the authority that licensed them — she noted that the current patchwork of rules has reduced accountability and complicated safeguarding.

Several peers, however, argued that uniform national standards must be complemented by stronger local enforcement capabilities. Labour’s Lord Bradley highlighted ongoing concerns raised by metro mayors, including those in Greater Manchester, who cite loopholes that permit companies to be licensed in areas with less stringent requirements while conducting most of their operations elsewhere. He pressed the Government to consider further statutory measures that would require operators and drivers to be licensed where they actually work.

Other contributions focused on safeguarding, referencing recent findings by Baroness Casey on child sexual exploitation. Speakers noted that effective enforcement requires local authorities to have clear jurisdiction and adequate resources to monitor compliance, particularly when passengers rely on taxis in vulnerable circumstances. They emphasised that national standards alone will not resolve these issues unless matched with robust, localised enforcement frameworks.

Beyond taxi and private hire regulation, the Bill also contains wider licensing provisions, including expanded powers for the Mayor of London relating to the hospitality and night-time economy sectors. Supporters argue these powers could drive economic growth, while critics caution against overcentralisation and the potential weakening of borough-level autonomy.

With the Bill now moving to Committee Stage, peers are expected to table amendments seeking greater clarity on the scope of licensing powers, the balance between national and local regulation, and the enforcement mechanisms available to strategic authorities. The debate underscored the broader tension between consistency and local control that continues to shape England’s devolution landscape.