The Department for Transport has launched its long-awaited consultation exercise on its Draft Best Practice Guidance on taxi and PHV licensing.  In its report on the UK taxi and PHV market in 2003, the OFT recommended that local authorities should be provided with guidance to promote best practice in relation to licensing the trade, and this was accepted by the Government in its March 2004 response.

The Guidance makes it clear that it is not intended to comprehensively cover every facet of licensing, but instead covers only issues of significance or those causing difficulties in the past.  The overall ethos of the Guidance is that while LAs should give due consideration to public protection, this should be implemented in a manner that is not overly restrictive and thus perhaps counter-productive.

Among the main points made in the Guidance are:

Vehicles
The importance of specifying as wide a range of vehicles as possible is underlined, and caution is emphasised regarding purpose-built vehicles due to the implied supply constraint.  Attention is also drawn to the eventual intention to introduce taxi accessibility regulations under the Disability Discrimination Act 1995, and LAs are reminded of previous letters from the DfT encouraging the introduction of local accessibility policies.

Testing:  Yearly testing is recommended, except perhaps for older vehicles.  An MOT-style standard is deemed appropriate, except perhaps for the vehicle's interior.  Age limits may be disproportionate. Contracting out of testing could alleviate a lack of LA testing provision in some areas, while 'mystery shopping' could ensure appropriate standards.

Security: LAs should at least consider sympathetically any requests to allow security equipment to protect drivers, such as CCTV and screens.  Links with local police should be encouraged.

Vehicle ID: Public confusion means that it is important to distinguish taxis from PHVs.  Possible approaches include no ID except plate, a vehicle sign of a specified form and a roof sign specifying 'pre-booked only'.  The middle ground is preferred as this helps distinguish the vehicle from a taxi and provides information to the public, but also prevents the confusion that any roof sign might provide.

Environmental considerations:  The costs of any desired environmental improvements should not outweigh the benefits.

Stretched limousines:  Since these meet a legitimate public demand, applications should not be automatically rejected.  The blurred dividing line between PHVs and PSVs is mentioned, but it is emphasized that a PHV cannot carry more than eight passengers, and that the limos will not normally be capable of complying with PSV regulations.  This issue is subject to further review.

Quantity restrictions
Under current law, restricting LAs must ensure that there is no significant unmet demand (SUD) for taxi services.  The DfT regards unrestricted numbers as best practice.  LAs are urged to reconsider whether any restrictions are appropriate.  The public perspective should be considered; what are the benefits of retention and removal.  Plate premiums in restricted areas represent a barrier to entry and are hard to justify.  Restricting authorities need to survey at least every three years to provide legal justification.  Waiting times at ranks is an inadequate indicator of demand, as are waiting times for street hails and telephone bookings.  People discouraged from using taxis at all can represent latent demand.  Peaked demand (eg pub closing times) should not be ignored, despite current practice.  The need to consult a wide range of interested parties is emphasised.  Evidence and an explanation of the survey's conclusions should be published.  Benefits to consumers should be outlined and the number of taxis justified.  The local trade should not finance surveys since this questions impartiality and objectivity.  The DfT's letter of June 2004 asked LAs to publicly justify restricted numbers.

Taxi fares
Fares should be reviewed regularly.  Higher fares may be required to reflect peaks in demand.  Negotiations on fare discounting at ranks should not be encouraged.  There is scope for fare competition in the telephone market.  Taxi operators could be allowed to advertise discounts on their vehicles.

Drivers' licenses
Yearly licensing can be unduly burdensome.  Three years is the legal maximum and is preferred.  However, a one-year option could be offered if drivers cannot afford the larger fee.

Criminal record checks:  Each case should be considered on its merits, but particular caution is required over violent offences, particularly sexual.  To promote consistency and avoid legal challenges LAs should adopt a clear statement of policies.  Policies on overseas applicants are required; a certificate of good conduct from the relevant embassy may be appropriate.  CRB disclosures should be sought only every three years, but drivers obliged to report new convictions in the interim.

Medical criteria:  Medical checks represent good practice, and 'Group 2' medical standards applied to lorry and bus drivers seem best practice.  However, exceptions can be made for drivers with insulin treated diabetes.

Age limits:  Neither minimum nor maximum age limits seem necessary, provided medical checks are made regularly.

Driving proficiency:  LAs requiring further driving tests should compare the benefits with costs and obstacles to entering the trade.  But they should note that the Driver Standards Agency provides a specific driving test for the trade.

Other training:  Vocational training could well be encouraged or required.  Some initiatives have been developed and others are in train.  Training can cover customer care, disability awareness, relevant legislation, road safety, use of maps and GPS, emergencies and conflict management.

Topographical knowledge:  Knowledge tests should reflect the complexity of local geography and should not represent an unnecessary barrier to entry.  Since PHVs are pre-booked, a knowledge test may be inappropriate, although key items could be tested.

Duties under the Disability Discrimination Act 1995
Failure to carry assistance dogs is a criminal offence, except for drivers exempted on medical grounds.  Enforcement is the duty of LAs.  Under future regulations disabled people may take legal action against LAs if policies or practices discriminate against them. Future regulations will also mean that drivers should not discriminate unreasonably against the disabled.

PHV operators
Public safety is again paramount, but costs should be commensurate with benefits.

Criminal record checks:  Standard or enhanced CRB disclosures cannot be required for PH operators.  However, a basic disclosure could be appropriate after the introduction of such as system.  Overseas applicants could require a certificate of good conduct from the relevant embassy.  A reference could also be required.

Record keeping:  Good practice requires that PH operators keep a record of each booking.

Insurance:  Checks on the appropriate public liability insurance should be made regarding buildings open to the public.

License duration:  A period of five years seems appropriate, since the PHV operator's involvement with the public is less direct than that of drivers.

Enforcement
This benefits both the public and responsible trade members.  Strategy should reflect local circumstances, including touting by unlicensed drivers in some urban areas.  At least some resources should be devoted to late night periods, when some problems tend to arise more often.  Some LAs employ taxi marshals for late night ranks.  Powers used for spot checks should be considered, since they may not afford license holders the right of appeal.

Taxi zones
The abolition of zones is recommended.  Zoning tends to diminish the supply of taxis and consumer choice.  Abolition can reduce LA costs and promote fuel efficiency.  A proposed Regulatory Reform Order will remove the need for the Secretary of State to approve abolition orders.

Flexible transport services
Taxis and PHVs can usefully provide flexible services which can be useful to meet local transport needs.  Rural bus subsidies have increased provision in recent years.  LAs should encourage the adoption of such services by promoting them to the local trade.  These include shared taxis and PHVs for advance bookings, shared taxis for immediate hire and taxibuses.

Local transport plans
These are required under the Transport Act 2000.  A final LTP is required by 31 March 2006.  LTPs set out the LA's transport plans and strategies to be implemented over a five year period, and Annual Progress Reports are required.  Taxi and PHV provision should be included.  Policy statements could include quantity controls, licensing conditions, fares, taxi ranks, accessibility and flexible services.  Changes in policy should be outlined, and statistics could usefully demonstrate trends.

Responses to the consultation should be made by 28 October 2005.

The Office of Fair Trading welcomed the consultation, and noted that many LAs had lifted numerical controls since its 2003 recommendation.  OFT Market Studies Director Daniel Gordon said he was pleased that consumers in these areas were benefiting from more taxis and lower waiting times.

Link to full consultation document

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