Transport Committee urges Ministers to get tough on taxi standards

The Transport Committee has warned that the Government’s proposed national minimum standards for taxis and private hire vehicles must not become “low by default”, and has called for a “clear plan” to tackle high levels of out-of-area working.

The report, “Raising the standard: licensing of taxis and private hire vehicles”, published today (09 June 2026), highlights concerns over fragmented regulation across England’s more than 260 licensing authorities, each of which currently sets its own standards. While the Government announced in November 2025 that it would introduce national minimum standards, the Committee said these must be robust enough to avoid a “lowest common denominator” effect and reduce incentives for “licence shopping” – where drivers obtain licences from authorities with less stringent requirements before operating elsewhere.

The Committee also heard strong criticism of routine out-of-area working, which Baroness Louise Casey’s 2025 report into group-based sexual exploitation identified as undermining safeguarding efforts.

Summary of the Committee’s Recommendations

1. Modernise and consolidate legislation

• Introduce new legislation to replace the fragmented and outdated framework.

• Use the Law Commission’s 2014 draft Bill and the 2018 Task and Finish Group report as the starting point.

• Ensure the new framework explicitly covers app-based operators such as ride-hailing platforms.

• Retain the distinction between taxis and PHVs, but regulate both within a single statutory framework.

2. Reduce out-of-area working

• Develop a clear plan to curb extensive out-of-area licensing and operation.

• Create incentives for drivers to be licensed where they predominantly work.

• Improve local enforcement capability and rebuild public confidence.

3. Review licensing structures

• Following consultation, publish a comparison of:

  • Local authority licensing,

  • Local transport authority licensing, and

  • A potential national licensing model.

• Assess which approach best reduces licence shopping and out-of-area working.

4. Introduce strong national standards

• National minimum standards should be set high enough to avoid becoming a weak baseline.

• Limit areas where local authorities can vary standards.

• Reduce incentives for drivers to seek licences from authorities with lower requirements.

5. Strengthen passenger safety measures

National standards should require:

• Enhanced DBS checks for all drivers.

• Checks against both adults’ and children’s barred lists.

• Mandatory safeguarding training.

• Regular DBS re-checks.

• A review of whether DBS filtering rules prevent authorities seeing relevant information.

6. Clarify the “fit and proper” test

• Link national standards clearly to decisions about whether someone is “fit and proper” to hold a licence.

• Provide more structured guidance while preserving some local discretion.

7. Improve information sharing

• Work with the Home Office to put police–licensing authority information sharing on a statutory footing.

• Introduce duties to share safeguarding and risk information promptly and consistently.

8. Establish a national licensing database

The Committee recommends creating a national database covering:

• Licensed drivers,

• Licensed vehicles, and

• Licensed operators.

This would:

• Enable real-time checks by enforcement officers,

• Improve safeguarding,

• Help identify patterns of offending,

• Ensure complaints reach the correct licensing authority.

9. Consult on mandatory CCTV

• Consult on requiring in-vehicle CCTV across the sector.

• Balance safeguarding benefits with privacy considerations.

10. Improve licensing efficiency

National standards should include:

• Benchmarks for processing licence applications,

• Clear expectations for administrative performance.

11. Standardise complaints handling

• Create a national complaints portal so passengers and drivers know where and how to report concerns.

12. Improve accessibility

The Government should:

• Require mandatory disability awareness and equality training for drivers and operators.

• Introduce regular refresher training.

• Publish a national plan to increase the availability of wheelchair-accessible vehicles, particularly in rural areas.

Transport Committee Chair Ruth Cadbury said:

“Throughout our inquiry, the Transport Committee heard concerns about inconsistent taxi standards up and down the country. We also encountered deep-seated opposition to routine out-of-area working that many believe reduces standards by enabling licence shopping.

“The Committee welcomes the Government’s determination to turn this around with minimum standards, but we are clear that these standards should be high, comprehensive and consistent, with safety as absolute – both for drivers and passengers.

“Ministers should also build on the foundations they have laid with a blueprint for bringing down high levels of out-of-area working that has undermined public confidence in the sector and made enforcement harder.

“By taking tough action now, we can ensure licence shopping is disincentivised, taxis are safer and passengers get the same high standards wherever they are in the country.”

James Button, President of the Institute of Licensing said:

“The Institute welcomes this insightful and timely report from the Transport Committee. This must be taken into account by the Government when framing the forthcoming Taxi and Private Bill. The recommendations in this report are clear and supported by the evidence that the committee received. The Government must regard new legislation as a matter of necessity, rather than desirability, and work on the new Bill, together with the regulations that are required to bring the provisions in the English Devolution Community Empowerment Act into force, must be given priority to enable these vital reforms to be implemented as soon as possible.

The Institute looks forward to working with our members (which include licensing authorities and taxi and private hire trade bodies) colleagues at the Department of Transport and the Local Government Association to enable the new legislation to be fit for the 21^st-century.”