'Loophole' allowing private hire drivers to use licences from anywhere in country to be closedhttps://www.liverpoolecho.co.uk/news/li ... s-31871572The government has promised to "work at pace to close loopholes in taxi licensing laws" to stop drivers applying for a licence anywhere in the country. Home Secretary Yvette Cooper vowed to take action on the issue in response to Baroness Louise Casey's National Audit on Group-Based Child Sexual Exploitation and Abuse, which was published yesterday, June 16.
The report set out twelve recommendations to tackle grooming gangs, including launching a national enquiry and a national criminal investigation. The government will accept all of the recommendations, which also include taking immediate action to close a loophole allowing private hire vehicles to operate outside of their licensed areas.
The report's recommendation 11 stated: "The Department for Transport should take immediate action to put a stop to 'out of area taxis' and bring in more rigorous statutory standards for local authority licensing and regulation of private hire drivers.
"This remains an area that can be exploited by individuals and groups intent on sexually exploiting children and more rigorous approaches – and consistency in those approaches across local authorities – is necessary."
Responding to the report in the House of Commons yesterday, Ms Cooper said: "My Right Honourable Friend the Transport Secretary will also work at pace to close loopholes in taxi licensing laws."
Later in the Commons session, Peterborough MP Andrew Pakes said: "I know from my city of Peterborough the challenge to law-abiding, decent taxi drivers who are undercut by different licensing laws, but also to law enforcement and the safety of passengers when we have number plates from different areas.
"I note that that is the focus of one of the recommendations. Can my Right Honourable Friend give us more details on how we will move at speed to create a level playing field nationally, so that passengers are safe and drivers have the support they need to keep everyone safe?"
Ms Cooper responded: "Many local authorities across the country have worked to ensure that they raise standards and checks in their licensing arrangements, particularly those in areas where there have been serious problems and criminal cases.
"However, those checks and safeguards can end up being undermined by the licensing of taxis in other areas that do not have such checks, so we are looking to take forward reforms to the law.
"The Transport Secretary is looking at exactly this issue to make sure that we find a way to close the loophole."
Last month, the ECHO reported that almost 500 private hire licences were granted to drivers with Liverpool postcodes by Wolverhampton Council in 2024.
Though passengers may expect private hire drivers to have been licensed by their local council, current legislation means they can work outside their licensed area. Many of these drivers are registered in Wolverhampton, and their vehicles are now frequent sights when booking journeys in Merseyside on apps such as Uber.
A Freedom of Information request made to the City of Wolverhampton Council revealed the local authority issued 479 private hire driver licences and licenses for 695 private hire vehicles to applicants with Liverpool postcodes in 2024. Additionally, earlier this year, a Freedom of Information request revealed that 96% of Wolverhampton taxi and private hire drivers licensed in the last year live outside of the council authority area.
Greater Manchester Mayor Andy Burnham has highlighted the prominence of Wolverhampton licences and has called on the government to change the law to mean that drivers should be licensed locally. Mayor Burnham pointed out that more than 11% of England’s private hire vehicles are licensed by the City of Wolverhampton Council, up from below 0.5% less than a decade ago.
The Merseyside-born Greater Manchester leader has called for the government’s English Devolution Bill to both devolve power over taxis to Mayoral Combined Authorities and put a stop to 'out of area' licensing.
Regarding the issue in Greater Manchester, the mayor said at a press conference in April: "The taxi licensing system is demonstrably a broken system. In our city region, we are on the verge of not licensing the majority of our taxis.
"We’re just about hanging on. But if the growth [in out-of-area] licenses continues, we will no longer licence the majority of our taxis."
In April, Liverpool City Council’s cabinet member responsible for licensing, Councillor Harry Doyle, said: "This is a national issue, and while we fully understand the frustration felt by some drivers, unfortunately, without a change in legislation, there is currently no action we can take.
"As the law stands, drivers with vehicle licences issued by other authorities are legally permitted to operate in Liverpool, and the City Council has no legal power to prevent this.
"It’s important to note that many of these drivers are, in fact, based locally. However, they choose to obtain their licences from areas such as Wolverhampton, where the licensing criteria differ.
"This is often due to the more robust standards set by Liverpool City Council, such as comprehensive training requirements, which we’re very proud of, as residents and visitors traveling around the city can expect the highest standards from our licensed taxis.
"The leader of Liverpool City Council, Councillor Liam Robinson, has formally raised these concerns with counterparts in Wolverhampton and we are committed to continuing discussions with other local authorities and the government in order to push for legislative changes that will address these issues and better support both drivers and passengers in Liverpool."
Last month, a spokesperson for City of Wolverhampton Council said: "Under the current law, applicants are able to apply to any licensing authority for taxi licences and the council may not refuse an applicant simply because they live in a different area. It is illegal for licensing authorities to impose a limit on the number of private hire licences it issues.
"Applicants are usually local to the area they drive in, but many choose to be licensed in Wolverhampton due to our efficient, yet rigorous, licensing process. Our early adoption of digital technology has allowed us to offer a simple and efficient online application procedure, with the requirement that drivers attend in person for training and strict assessment before an application can be processed. In addition, City of Wolverhampton Council is the only authority which carries out daily checks of drivers’ DBS status.
"The council does not gain financially, as the fees for taxi licensing are legally ringfenced for spend only on related activities. Where our income generates a surplus, due to economies of scale, we must return the money to the trade by reducing our fees.
"Public safety is of paramount importance to us. Drivers are regulated by Wolverhampton and can legally work anywhere in the country. We take enforcement responsibilities seriously and our officers are out across the country, every Friday and Saturday night, working to protect the public."