The Labour government has launched a major consultation aimed at tightening the rules for taxis and private hire vehicles across the UK. The central goal is to enhance passenger safety by drastically reducing the number of licensing authorities and cracking down on drivers operating 'out-of-area'.
Streamlining a Complex System
At the heart of the proposed reforms is a plan to simplify a currently fragmented system. There are currently 263 different bodies that can issue taxi and private hire vehicle licences to drivers. The Department for Transport's proposals, approved by the Labour Party, seek to cut this number down to just 70.
This consolidation would see licensing responsibility moved entirely to Local Transport Authorities. Local Transport Minister and MP for Nottingham South, Lilian Greenwood, stated that this move is designed to encourage "greater consistency and stronger enforcement across the country."
Closing the 'Out-of-Area' Loophole
A key safety concern driving the consultation is the practice of drivers working outside the region where they are licensed. The government intends to introduce measures to deal with this issue directly.
The push for reform follows the publication of Baroness Casey's National Audit on Group-Based Child Sexual Exploitation and Abuse. The report highlighted that weaknesses in the taxi licensing system had been "left open to exploitation by those intent on sexually exploiting children." It specifically urged action to close the "loophole" that allows drivers to apply for licences anywhere in the country and then work elsewhere.
Next Steps for National Standards
These licensing changes are proposed alongside the introduction of national minimum standards for the industry. Minister Greenwood described the combined proposals as "important next steps to making taxis and private hire vehicles as safe as possible."
Baroness Casey herself has welcomed the government's action, calling the new proposals an "important first step" towards better protecting passengers. The public consultation, launched on 9 January 2026, will now seek opinions on how best to implement these changes to reduce out-of-area operations and streamline licensing.
