Private hire licence system broken, mayor says

The mayor of Greater Manchester has called for the government to introduce new laws to end what he described as a "broken system" of out-of-area taxi licensing.

Andy Burnham said it was "unacceptable" and a risk to public safety that almost half of private hires vehicles operating in the region were licensed elsewhere.

He has called for more devolved powers to manage the trade after more than a third of taxi drivers in Greater Manchester were shown to be registered in Wolverhampton.

The government said it was aware of the concerns and was "considering options to improve the current situation", adding that passenger safety was its "top priority".

A spokesman for City of Wolverhampton Council said under current laws drivers could apply to any licensing authority and added that it was illegal to refuse an application because of where they lived.

Burnham, who has previously spoken out on the issue, said drivers registered out-of-town were a risk to public safety as local authorities had little control over their licences.

It also created "significant challenges" around enforcing the standard of vehicles and local accountability, he said.

Laws changed in 2015 as part of a deregulation drive to allow private-hire drivers to get licences from any local authority, regardless of where they live.

According to the Greater Manchester Combined Authority, as of 2024, more than 10% of all taxi licences in England were issued in Wolverhampton.

The mayor said deregulation had "opened the door" to the out-of-town problem, adding "if it wasn't Wolverhampton it would be somewhere else".

At a press conference, he called on the government to give city-regions more control over granting the licences to ensure a "safe and locally-accountable taxi system.

He said a national approach was needed or some local authorities would face a "risk of being undercut elsewhere".

Taxi drivers in Greater Manchester will be asked about proposals to clamp down on out-of-area licensing, including barriers and incentives to applying within their home region.

Burnham admitted some drivers do go elsewhere due to the speed and cost of processing applications.

"We recognise that some of this is about challenging ourselves" he said, adding that he would also ask the government to look at VAT exemptions for the trade.

City of Wolverhampton Council said the West Midlands authority did not gain financially from it licensing regime "as the fees for taxi licensing are legally ringfenced for spend only on related activities".

A Department for Transport spokesman said: "Passenger safety is our top priority, and since 2023 local authorities have been required to use a national database which shows them when a licence has been refused, suspended, or revoked on safety grounds, ensuring safer journeys.

"We are aware of the concerns about taxi and private hire vehicle licensing, including out-of-area working, and are considering options to improve the current situation."

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