A new inquiry by the
Transport Committee will investigate how standards for taxis and
private hire vehicles (PHVs) could be improved, amid concern
about inadequate regulation that varies from one area of the
country to another.
The full terms of reference for this inquiry are included
below.
Local authorities with the power to issue licences (licensing
authorities) – such as Transport for London, city councils,
county councils or combined authorities – have some freedom to
set their own local standards for safety, driver conduct and
accessibility, within a statutory
framework.
Despite licensing authorities needing to have regard to statutory
standards, local variations have arisen across different
authorities.
Additionally, ‘cross-border licensing' has given rise to the case
of Wolverhampton City Council, where 96% of its taxi and PHV
licences have been awarded to drivers from outside of the
city.
The Greater Manchester
Combined Authority is among those calling for a change in the
law, after a Freedom of Information Act disclosure showed that
9,000 drivers registered with Wolverhampton City Council reside
in the Greater Manchester area.
The cross-party Committee will also examine how standards across
the sector could be improved and made more consistent across the
country with regards to accessibility, safety and safeguarding of
passengers.
The inquiry will look at how best practice could be replicated,
the effectiveness of enforcement and inspection regimes, and how
standards vary – and could be standardised – between taxis, PHVs
and ride-hailing services such as Uber and Bolt.
MPs will also look to the future at how the sector and its
regulatory system might need to evolve to enable the use of
self-driving vehicles.
The inquiry comes after the Committee published its report on
accessible transport, which heard evidence of too few
wheelchair-accessible PHVs and taxis being in circulation around
the country, and even of drivers turning away blind people with
assistance dogs.
Transport Committee Chair MP said:
“When it comes to the licensing and regulation of taxi and
private hire vehicles, a strange patchwork of driver and vehicle
standards now exists across every town and city in the
country.
“This inconsistency has given rise to a situation that just
isn't good enough for drivers or for the public, who can
unknowingly leave themselves vulnerable when getting into the
back of a stranger's car.
“This Committee will investigate whether a more standardised,
more rational regulatory and enforcement regime could do away
with the phenomenon of one city receiving applications from all
over the country. We want to examine how an improved system could
give greater confidence to consumers, particularly disabled
people, women, children and other vulnerable people. And we need
to look at how the system could make it clear who a passenger can
complain to if standards aren't met.”
Call for evidence
The Transport Committee now accepts written evidence submissions
from those with knowledge of the sector. Submissions should be
made via the Committee's website,
by 11.59pm on 8 September 2025.
- Do current licensing arrangements and tools enable local
authorities to effectively regulate and oversee the taxi and
private hire vehicle (PHV) sector across England, in terms of
safety, accessibility and quality of service? If not, what
improvements could be made?
- What is the impact on the travelling public and drivers of
variation between licensing authorities? Is reform needed to
bring greater standardisation?
- What would be the practical implications for licensing
authorities and operators of more stringent or standardised
licensing conditions in respect of safety, accessibility,
vehicles and driver conduct?
- What steps should the Government take to address the
challenges posed by cross-border licensing in the taxi and PHV
sector?
- What would effective reform look like in terms of
enforcement, passenger safety and safeguarding, and regulatory
consistency? Is there a role for regional transport
authorities?
- How are digital ride-hailing platforms impacting standards in
the sector, and is further regulation in this area
required?
- How effective, accessible, and trusted are complaints and
incident reporting systems in the taxi and private hire vehicle
(PHV) sector, for both passengers and drivers?
- How effective is the National Register of Licence Revocations
and Refusals (NR3) in supporting consistent licensing decisions
across local authorities? What barriers, if any, are limiting its
use or impact?
- What are the implications for taxi and PHV licensing of the
future rollout of autonomous vehicles?
