Andy Burnham and taxi trade call on MPs to back changes to tackle out-of-area licensing

Following a constructive roundtable with the taxi trade, there was consensus that an amendment to the English Devolution and Community Empowerment Bill – currently going through parliament – is needed to tackle ‘a broken taxi system’, where one local authority dominates licensing nationally, undermining local enforcement and accountability.

Greater Manchester’s leaders hope an amendment to the Bill could expedite the way forward, with Elsie Blundell – MP for Heywood and Middleton North – tabling a new clause for an optional “licence where you operate” model – during the Bill’s ‘Report Stage’ next week. This would give Mayoral Strategic Authorities power to require that journeys that start and end within their strategic authority area are fulfilled by locally licensed operators.

The government recognises the need for legislative change, with the English Devolution White Paper (December 2024) committing to consulting on whether ‘Strategic Authorities’ - such as Mayoral Combined Authorities - should assume responsibility for taxi licensing.

A proposal for National Minimum Licensing Standards has also been tabled by the government to be included in the Bill, but it won’t tackle out of area licensing.

Mayor of Greater Manchester, Andy Burnham said: “Taxis are vital to our transport system and local economy. We want them to be amongst the safest and most trusted in the country. But we can’t do this with the current broken licensing system.

“Almost half of Greater Manchester’s private hire drivers are licensed elsewhere and that’s simply not right. The report is very clear about the benefits of changes at a national level, and the barriers drivers face when getting their licence locally.

“We have listened to what drivers, and the industry has told us, and we are determined to lead the way on licensing reform, ensuring high standards, public safety, and fair competition for our drivers. That is why we, along with the trade, are calling on Members of Parliament to back the amendment to close this legal loophole.”

While Hackney Carriages – or ‘black cabs’ – can only operate in the area where they are licensed, current rules mean private hire vehicles (PHVs) can apply for a licence from any authority, each with their own requirements, processes and resources.

If a licence is granted, a driver can operate anywhere in England and Wales. This undermines local enforcement and accountability, with more than one in 10 (11%) of all England’s private hire vehicles licensed by one local authority, City of Wolverhampton Council – up from below 0.5% less than a decade ago. And just under half of all PHVs operating in Greater Manchester are licensed by authorities outside the ten councils.

Leader of Bury Council and Clean Air lead for Greater Manchester, Cllr Eamonn O’Brien, said: “Taxis and private hire vehicles play a key role in keeping Greater Manchester moving and supporting our night-time and visitor economy.

“Like the Bee Network, we’re committed to setting high standards and transitioning to cleaner, greener vehicles to support Greater Manchester’s journey towards cleaner air.

“We recognise the challenges drivers face, which is why we’re committed to working closely with the trade to ensure that upgrading to greener vehicles is both achievable and supported.”

Additionally, a new taxi industry working group, chaired by the Transport Commissioner, will be established.