Taxi and private hire vehicle licensing best practice guidance for licensing authorities in England
Updated 17 November 2023
1. Introduction
1.1 Background
The Department for Transport has issued guidance on taxi and private hire vehicle licensing since 2006 to assist local authorities that have responsibility for the regulation of the taxi and private hire vehicle trades. This is updated periodically, considering stakeholder views and changes in the way the sector operates. This best practice guidance is one of a number of documents intended to assist the operation and regulation of the sector. The objective of the government is to work with licensing authorities to promote the regulation of the sector in a way that enables the provision of safe, accessible, available, and affordable services that meet the wide range of passenger needs by a thriving trade.
In 2020 the government issued, for the first time, Statutory Taxi and Private Hire Vehicle Standards to safeguard the most vulnerable in society. The Policing and Crime Act 2017 enabled the Secretary of State to issue these to licensing authorities; though the focus was on the use of their powers to protect children and vulnerable adults over 18 from harm, the measures will increase the safety of all passengers. Licensing authorities must give due regard to the Statutory Standards when setting their taxi and private hire vehicle licensing policies and procedures. This non-statutory best practice guidance complements the statutory standards, covering a range of issues outside the remit of the statutory standards.
Individual licensing authorities are still responsible for deciding their own policies and making decisions on individual licensing matters applying the relevant law and any other relevant considerations. This guidance is primarily intended to assist licensing authorities, but it is only guidance and does not intend to give a definitive statement of the law; any decisions made by an authority remain a matter for that authority.
The Local Government Association’s Councillors’ Handbook on taxi and private hire vehicle licensing advises that those responsible for licensing should communicate regularly with their counterparts in neighbouring authorities to ensure critical information is shared and decision-making is consistent and robust. By working together, local government can make sure that this vital service is safe, respected, and that it meets the needs of all those in their local communities.
This guidance links to relevant documents that licensing authorities may find useful to share with local partners (for example, taxi or private hire vehicle providers).
This version of the best practice guidance replaces all previous versions and will be subject to revision when necessary.
1.2 Terminology
Vehicles licensed under section 37 of the Town Polices Clauses Act 1847 and section 6 of the Metropolitan Carriage Act 1869 are referred to in that legislation as ‘hackney carriages’. This term is also used in older regulations. In more recent legislation the term ‘taxi’ is used.
In this document ‘taxi’ means vehicles licensed under the aforementioned sections of the above acts only. It does not include private hire vehicles (PHVs).
Vehicles licensed under section 48 of the Local Government (Miscellaneous Provisions) Act 1976, section 7 of the Private Hire Vehicles (London) Act 1998 and section 5 of the Plymouth City Act 1975 are often referred to as as ‘minicabs’, ‘cabs’ and even ‘taxis’. The term ‘private hire vehicle’ is used in aforementioned sections of the above acts and so is used throughout this guidance to refer to all such vehicles.
Private hire vehicles include executive cars, chauffeur services, limousines and some school and day centre transport services. One of the overarching objectives of this guidance is to provide greater distinction for the public between taxis and PHVs so that the public is increasingly aware of this. Licensing authorities should adopt this approach in its communications.
1.3 Scope of the best practice guidance
This guidance does not seek to cover the whole range of possible licensing requirements. Instead, it seeks to concentrate on those issues that have caused difficulty in the past or that seem of particular significance. This document will be reviewed and updated when necessary and other specific issues may be added should the need arise. The law on taxi and private hire vehicle licensing contains many complexities which are beyond the scope of this guidance.
The guidance does not purport to give a definitive statement of the law and any decision made by a licensing authority remains a matter for that authority. Licensing authorities will need to seek their own legal advice on issues that are particularly relevant to them. The department is not responsible for interpreting the law – that is a matter for the courts.
The personal safety of passengers is critical. The government has clearly set out measures that licensing authorities should take to safeguard passengers in the Statutory Taxi and Private Hire Vehicle Standards. This guidance seeks to reinforce that message by highlighting other measures that should be considered to assist the sector to deliver the range of services the public demand.
Licensing authorities have to consider a range of vehicles and services in the context of private hire vehicle licensing. The department has produced guidance to assist licensing authorities in deciding which vehicles and services require licensing under the private hire vehicle regime and which fall outside the private hire vehicle definition. The guidance sets out the key principles and characteristics which the department considers define a private hire service.
The guidance on whether services might require a private hire vehicle licence stresses that it remains for licensing authorities to make decisions in the first instance and that, ultimately, the courts are responsible for interpreting the law.
2. The role of taxis and private hire vehicles
Taxis and private hire vehicles play a vital part in local transport, connecting residents to the local economy and in enabling businesses and residents to reach wider transport networks. All social groups use taxis and private hire vehicles. Groups that use them the most are low-income young women, amongst whom car ownership is low, and those with mobility difficulties.
The taxi and private hire vehicle sector is entirely demand-led. Though these services are most often associated with journeys for leisure, social and business purposes, they are an important part of the transport network. As discussed in section 14 of this guidance, they should be considered as part of local transport planning.
Taxis and private hire vehicle services reduce the need for private car ownership, enable key workers to commute when other modes are unavailable, provide door-to-door transport for those that are not able to travel via other modes and assist on meeting the needs for home-to-school transport provision. Taxis and private hire vehicles have a particularly important role in the night-time economy getting people home safely late at night.
3. The role of licensing authorities
As stated in the Statutory Taxi and Private Hire Vehicle Standards issued by the department to licensing authorities, the primary and overriding objective of licensing must be to protect the public. Licensing authorities should also be aware that, as well as ensuring taxi and private hire vehicle services are safe, the public have a reasonable expectation that the services available will be accessible and affordable.
It is for licensing authorities to ensure that their licensing policy and requirements are proportionate, so that passengers can choose from a wide range of safe services. As indicated above, the primary function of the licensing regime is public safety; however, an unduly stringent regime on other issues may restrict the supply of taxi and private hire vehicle services by putting up the cost of operation, or otherwise restricting entry to the trade. Licensing authorities should recognise that too restrictive an approach can be counter-productive, restricting the licensed trade to such an extent that the public resort to the use of unlicensed, unvetted and uninsured drivers and vehicles.
Section 17 of the Crime and Disorder Act 1998 requires local authorities to consider the crime and disorder implications of all their activities and functions and do all that they reasonably can to reduce crime. Licensing authorities routinely do this by setting licensing requirements that protect passengers, but this duty also extends to considering ways that licensing requirements and policies can reduce crime against drivers. It is the case that drivers are subjected to robbery, verbal and physical assault, this can be racially motivated or aggravated. Licensing authorities must consider ways to protect those working in the trade as well as those that use its services.
Licensing authorities are required under the Public Sector Equality Duty to pay regard to the need to eliminate conduct prohibited by the Equality Act 2010, to promote equality of opportunity and to foster understanding between people who share a protected characteristic and those who do not. It is beyond the scope of this document to identify actions which would demonstrate compliance with this duty, and ultimately only a court can do so definitively. We would however suggest that authorities:
- maintain a body of evidence on the impact of services on people with different protected characteristics and use it to make policy decisions consistent with the duty
- consider how they can actively promote equality, such as by consulting regularly with users, planning strategically to provide services which meet their needs, and by prioritising actions which seek to eliminate discrimination or barriers to equal access
- consider how to demonstrate the consideration given in a manner which promotes public awareness of the authority’s inclusive approach to service support and provision
Disability is a protected characteristic under the Equality Act 2010, and disabled people may face particular barriers accessing taxi and private hire vehicle services if authorities fail to regulate services inclusively and to uphold the rights of affected passengers. In our view, an inclusive service accessible to disabled people is one where:
- there are sufficient vehicles meeting disabled people’s access needs, to allow them to travel as easily, between the same locations and at the same times, as non-disabled people
- policy decisions are informed by an accurate and up-to-date understanding of the experience and needs of disabled people with a range of visible and less visible impairments
- action is taken proactively to improve the accessibility of the services supported
- disabled people have confidence that services will meet their needs and that, if things go wrong, their concerns will be understood and investigated thoroughly
- if operators and drivers fail in their responsibilities, that appropriate enforcement action is taken to prevent its recurrence and protect other disabled passengers
3.1 The regulators’ role
Licensing authorities are required under section 22(2) of the Legislative and Regulatory Reform Act 2006, to have regard to the Regulators’ Code.
The code states that:
Regulators should avoid imposing unnecessary regulatory burdens through their regulatory activities and should assess whether similar social, environmental and economic outcomes could be achieved by less burdensome means. Regulators should choose proportionate approaches to those they regulate, based on relevant factors including, for example, business size and capacity.
As with other regulators, licensing authorities’ interventions should be focussed on mitigating safety risks for passengers and drivers, and enabling fair competition within the trade by ensuring consistency of regulation and enforcement. Licensing authorities should actively promote inclusivity, equality and independence for disabled people and ensure that they only issue licences to those that are fit and proper to hold one.
A need to intervene might be established through analysing complaints received or consulting with passengers and/or the trade. Licensing authorities should consider the wider impact of interventions and how they affect the delivery of safe, available, affordable and accessible services.
3.2 The objective of regulation and consideration of policies
When formulating a taxi and private hire vehicle policy, the primary and overriding objective must be to protect the public. Ensuring high safeguarding requirements and processes, as set out in the Statutory Taxi and Private Hire Vehicle Standards, is only one way in which licensing authorities can help ensure the personal safety of passengers.
Ensuring local residents understand the distinction between the taxi and private hire vehicle trades and how each service can be legally engaged is very important.
The key message needs to be that, unless you are hailing a locally licensed taxi in the street or at a stand, you should not get in any other vehicle unless you have pre-booked it and have received information from the operator to identify it. This messaging can be supported by a policy that makes taxis look distinct from private hire vehicles; this is discussed further in section 8.
In addition to the safety of passengers, regulation should protect equality and enable fair competition. Once a need to intervene is established, licensing authorities should consider whether any policy changes would have unintended negative consequences that might outweigh the benefits of that policy.
For example, if a licensing authority established that the drivers they license have frequent collisions, it may set an objective to reduce these. The authority might try to address this concern by requiring all drivers to have ten years’ driving experience on the basis that ‘experienced drivers are safer’.
Such a requirement would however prevent an individual under the age of 27 entering the trade. This would be regardless of whether they held an advanced driving qualification. It is probable that such an individual is a safer driver than someone over 27, who passed their driving test 10 years ago but has rarely driven since. While experience is generally useful, individuals should be able to evidence that they meet the objective of the policy rather than an arbitrary criterion.
Licensing authorities should ensure that their various licensing requirements are proportionate to the risk they aim to address or the policy objective they are seeking to achieve. The cost of a requirement, in terms of its effect on the availability of transport to the public, should be at least matched by its benefit. A detailed, quantitative, cost-benefit assessment is not needed in each case, but licensing authorities are urged to look carefully at the costs, financial or otherwise, imposed by each of their licensing policies and of the equality impacts as required by law.
The Competition and Markets Authority provided guidance to licensing authorities to consider when designing policy or regulations to assess their impact on competition and the interests of consumers. Their competition impact assessment guidelines are a useful tool in this process.
The guidelines contain 4 tests which help policy makers assess whether their proposals will limit competition:
- Will the measure directly or indirectly limit the number or range of suppliers?
- Will the measure limit the ability of suppliers to compete?
- Will the measure limit suppliers’ incentives to compete?
- Will the measure limit the choices and information available to consumers?
Consideration of these questions will help ensure licensing authorities are aware of the restrictions they may be introducing on competition and may encourage them to consider alternative courses of action where possible.
As well as setting licensing requirements and imposing conditions, licensing authorities may introduce byelaws to assist them in the regulation of the taxi sector. The department has provided:
3.3 Delivering licensing services
Taxi and private hire vehicle licensing is a statutory function of licensing authorities and it is important they consider how best to deliver this service in a timely and efficient manner.
Enabling those that wish to enter the trade to evidence that they meet the necessary requirements in a timely way will benefit the trade and passengers through greater choice and availability.
As an example, the statutory standards state that licensing authorities “should require taxi and private hire vehicle drivers to undertake safeguarding training”; licensing authorities should consider how this training is provided to avoid unnecessary delays to gaining a licence. This might mean providing training material (hardcopy or online) and requiring the driver to attend an assessment. There should be sufficient availability of assessment slots to enable an applicant to evidence this knowledge in a reasonable time.
During the COVID-19 pandemic, several licensing authorities did not accept new licence applications for a substantial period. Refusing to accept an application makes the licensing authority vulnerable to judicial review and reputational damage. New ways of working were implemented by many licensing authorities, including training via virtual meeting platforms, temporary measures / relaxation of licensing requirements, temporary licences, and self-declarations.
Licensing authorities should learn from the challenges presented by COVID-19 and review their contingency plans to improve the way they administer the system and make sure the statutory licensing function can continue if circumstances make ‘normal’ procedures and processes impossible.
3.4 Licensing fees
It is essential to a well-functioning taxi and private hire vehicle sector that those administering and enforcing the regime are well-resourced. The licensing model is intended to be self-funding through licensing fees and it is expected that licensing authorities seek to provide a well-resourced system at the lowest cost to licensees. Licensing authorities should regularly review their fees to reflect changes to costs, both increases and reductions.
3.5 Licensing policy
The department recommends that all licensing authorities make publicly available a cohesive policy document or single online page which complies with current accessibility guidance, including WCAG 2.1 accessibility standard to Level AA as a minimum and the Public Sector Bodies (Websites and Mobile Applications) (No. 2) Accessibility Regulations 2018 for digital content, that brings together its key information on taxi and private hire vehicle licensing. This should include, but not be limited to:
- details on how the public can provide feedback on taxis and PHV licensees
- a ‘fit and proper’ person test
- licence conditions
- vehicle standards
- taxi tariffs
- licensing fees
Licensing authorities should also refer to the Statutory Taxi and Private Hire Vehicle Standards when compiling this document.
3.6 Consultation at the local level
Licensing authorities should consult on proposed changes in licensing rules that may have significant impacts on passengers and/or the trade. Such consultation should include not only all taxi and private hire vehicle licensees but also groups likely to be the trades’ customers.
Examples are groups representing disabled people, chambers of commerce, organisations with a wider transport interest (for example, local transport user groups and other transport providers), women’s groups, local traders, and local multi-agency safeguarding arrangements. It may also be helpful to consult with night-time economy groups (such as Pubwatch) if the trade is an important element of dispersal from the local night-time economy’s activities.
Any decision taken to alter the licensing regime is likely to have an impact on the operation of the taxi and private hire vehicle sector in neighbouring areas. Licensing authorities should engage with these areas to identify any concerns and issues that might arise from a proposed change. Many areas convene regional officer consultation groups or, more formal, councillor liaison meetings; this approach should be adopted by all authorities.
3.7 Changing licensing policy and requirements
Any changes in licensing requirements should be followed by a review of the licences already issued. If a need to change licensing requirements has been identified, this same need is likely to apply to those already in possession of a licence. That is not, however, to suggest that licences should be automatically revoked overnight. For example, if a vehicle specification is changed, then it is proportionate to allow those that would not meet the criteria to have the opportunity to adapt or change their vehicle.
The same pragmatic approach should be taken to driver licence changes - if requirements are changed to include a training course, a reasonable time should be allowed for this to be undertaken or gained. The implementation schedule of any changes that affect current licence holders must be transparent and communicated promptly and clearly.
Licensing authorities must consider each case on its own merits. Where there are exceptional, clear and compelling reasons to deviate from a policy, then they should consider doing so. Licensing authorities should record the reasons for any deviation from the policies that are in place.
4. Accessibility
There are around 13.9 million disabled people in the UK, representing 20% of the population, a proportion that is expected to rise as the average age of the population increases. National Statistics published in the current Family Resources Survey showed that the proportion of people in England who reported a disability was 21%. As people age, the incidence of disability increases, with 40% of over 60s and 75% of over 80s being disabled, meaning that disability will become a fact of life for an increasing number of people, which may not always appear obvious.
Disabled people are particularly reliant on taxi and private hire vehicle services, either because they may not have access to a private car, are unable to use public transport, or because the built environment is insufficiently accessible to meet their needs. This can mean that the availability of an accessible, affordable taxi or private hire vehicle service can make the difference that allows them to live their life the way they want to, and ultimately, to fulfil their potential.
The government wants disabled people to be able to travel easily, confidently and without additional cost, and it is important that all transport services play their part in making this a reality.
The way in which people are disabled and the specific barriers they face may not always be obvious. Licensing authorities and providers of taxi and private hire vehicle services must therefore anticipate the needs of people whose access needs may be more apparent, such as wheelchair users and assistance dog owners, as well as those with less visible impairments, including autistic people or those with mental illness.
Every taxi and private hire vehicle passenger is an individual, each with their own unique wishes and requirements, none more than a disabled passenger using services. It is, however, important to recognise that there are certain access barriers which will be familiar to people with similar impairments, which authorities should take time to understand.
4.1 Accessibility barriers
Many disabled people face physical barriers when accessing transport services. This may be because the built environment includes features which are difficult for them to use, such as steps, or it may be because vehicle designs cannot accommodate a particular size of wheelchair. Some barriers to the provision of taxi and private hire vehicle services include:
- ranks provided with inadequate space to deploy a ramp
- waiting areas lacking seating for people unable to stand for prolonged periods
- inadequate supply of wheelchair accessible vehicles to ensure that every passenger can travel when and where they want to
- vehicle designs which do not accommodate larger or heavier wheelchairs
- private hire vehicles needed to pick up passengers in large or complex car parks, such as at airports or railway stations
- street design which prevents taxis and private hire vehicles from stopping close to destinations
To mitigate these physical barriers authorities must ensure that due regard is given to the Public Sector Equality Duty (PSED) (see section 149 of the Equality Act 2010) when taking decisions concerning the provision of taxi and private hire vehicle services and supporting infrastructure, and that reasonable adjustments are made to remove barriers preventing disabled people from accessing taxi and private hire vehicle services.
Licensing authorities should also do the following:
- consult with disabled passengers regularly on their experience of using taxi and private hire vehicle services, in addition to consulting trade unions and associations representing those providing services, and ensure that their feedback informs service development
- incentivise the uptake of wheelchair accessible vehicles where mandating them would be inappropriate.
- consider specifying that wheelchair accessible vehicles should be capable of carrying wheelchairs larger than the reference size
- work with airports, station operators and other locations where large numbers of passengers use taxi and private hire vehicle services to ensure disabled passengers can always access and exit vehicles safely and easily
- exercise discretion on application of other vehicle requirements if they would prevent suitable wheelchair accessible vehicles from being brought into service where there is unmet demand
4.2 Communication barriers
Disabled people may experience communication barriers when booking taxis or private hire vehicles or completing journeys. These may be related to a sensory impairment, such as blindness or deafness, or due to a cognitive impairment or autism. Taking time to understand the communication needs of individual passengers can make them feel more confident when using services. Communication barriers might include:
- inability to book a taxi or private hire vehicle where using a telephone is the only option
- inability to book a taxi or private hire vehicle where the use of an app, inaccessible to visually impaired people, and those with limited or no access to technology, is the only option
- difficulty identifying the vehicle and seeking assistance from its driver
- difficulty communicating with drivers, particularly when conducted through a screen separating the driver and passenger compartments
- inability of some passengers to understand the driver and to provide information necessary for completing the journey
- inability for some passengers to read a meter (if fitted)
To mitigate these communication related barriers, authorities should take the relevant actions provided in the other sections of this guidance and ensure that:
- a range of booking methods are provided, so that people with limited access to certain forms of technology or communication can request a PHV
- operators should identify a passenger’s accessibility needs prior to taking a booking, to ensure an appropriate vehicle is provided.
- information provided in hard copy in vehicles and in public places (such as libraries or private hire vehicle offices) is also readily available in alternative accessible formats, including large print, Braille, and Easy Read
- authority websites, including any pages relating to the taxi and private hire vehicle services and procedures for providing feedback and making complaints, comply with current accessibility guidance and legislation, including WCAG 2.1 accessibility standard to Level AA as a minimum and the Public Sector Bodies (Websites and Mobile Applications) (No. 2) Accessibility Regulations 2018 for digital content
- operator websites and digital booking apps comply with the WCAG 2.1 accessibility standard to Level AA and with the principles of the Public Sector Bodies (Websites and Mobile Applications) (No. 2) Accessibility Regulations 2018 as a minimum for digital content
4.3 Barriers relating to the carriage of assistance dogs
There are around 6,000 assistance dog partnerships in the UK, supporting disabled people to navigate the built environment, respond to sounds they cannot hear, react to health emergencies, and interact with objects and obstacles. They are often vital for their owners’ ability to live independently, confidently and safely, yet 76% of assistance dog owners surveyed for the 2022 Inclusive Transport Strategy Evaluation report had experienced a refusal or near-refusal during the preceding year. The main barriers faced by assistance dog owners when using these services include:
- the outright refusal of carriage
- an initial refusal of carriage followed by a protracted argument over an assistance dog owner’s right to travel
- the provision of a sub-standard service because of a wish not to carry an assistance dog
- longer waits for booked vehicles due to operators allocating only drivers willing to convey passengers accompanied by assistance dogs
- the charging of higher fares or additional fees
- requiring the assistance dog to travel in a separate compartment to its owner
- the failure of local authorities to prosecute drivers even where sufficient evidence exists, preventing affected passengers from having their legal rights upheld
4.4 Confidence barriers
Many disabled people lack confidence to use public transport services including taxis and private hire vehicles. They may have had negative experiences in the past or read about accessibility issues that others have experienced. Social media now makes it simple for disabled people, and others, to share accounts of being refused carriage or of licensing authorities failing to take decisive action against drivers who discriminate, and this can exacerbate perceptions that such services are not accessible. Confidence related barriers might include:
- the expectation that services will not be accessible, leading disabled people not to travel, or to use other less convenient or safe means
- the fear of confrontations which can ensue when attempting to travel with mobility equipment or an assistance dog
- the fear of being charged too much or taken on a circuitous route
- anxiety linked to mental health or other conditions, exacerbated by previous negative experiences or a fear of not being provided with appropriate assistance
- a lack of confidence in accessibility issues being investigated effectively and drivers facing sanctions where appropriate
To mitigate these confidence-related barriers authorities should take the relevant actions provided in the other sections of this guidance and:
- provide information publicly on the accessibility of taxi and private hire vehicle services, and the action that will be taken if they fall short of reasonable expectations
- always ensure that passengers are kept informed about the progress of investigations into complaints they have made, and that they understand the rationale for any resulting decision on action to be taken
- include in operator and driver facing communications testimonials of passengers who face confidence-related barriers when using taxis and private hire vehicles
- provide handouts explaining how confidence can be undermined by poor service
- support local travel training initiatives to support disabled people to access taxi and private hire vehicle services independently
- invite positive feedback on the accessibility of services, and champion inclusive behaviour, perhaps through communications, awards or other incentives
To assist passengers who would like to raise a complaint, licensing authorities should require operators to provide a driver’s private hire licence number and any information relating to a booking upon the relevant licensing authority’s request.
4.5 Supporting an inclusive service
Licensing authorities are uniquely placed to ensure that taxi and private hire vehicle services within their jurisdiction actively promote equality and independence for disabled people. By ensuring drivers and operators understand how to provide every customer with the assistance they need, authorities can ensure disabled people can travel with confidence that their needs will be met.
By taking action to ensure there are sufficient wheelchair accessible vehicles to satisfy passenger demand, authorities can ensure that wheelchair users need no longer structure their lives around the times and locations when vehicles accessible to them are likely to be available. And, by taking prompt and robust action to investigate and prosecute licensees in response to cases of discrimination, authorities can ensure that every operator and driver treats seriously their role in providing an inclusive service. Authorities should ensure those that are found liable for discriminatory treatment towards a disabled person are subject to a fine or the loss and/or suspension of their license as a consequence.
Supporting an accessible service is an integral aspect of licensing authorities’ role, therefore, it is important that authorities make the provision of an inclusive service a core strategic aim, and that they consider the factors which can influence the extent to which such services meet the needs of all passengers.
4.6 Inclusive service plan
All licensing authorities should develop and maintain an inclusive service plan (ISP), either as a standalone document or as an integral element of a wider strategy. The ISP should describe:
- the demand for accessible services in their area, from wheelchair users and non-wheelchair users, and from people with both visible and less-visible impairments, and an assessment of the extent to which that need is currently being met
- the authority’s strategy for making transport more inclusive generally, and specifically in relation to taxi and private hire vehicle provision
- the steps that the authority will take to improve the inclusivity of the taxi and private hire vehicle services it supports, including timescales for their completion
- the courses or assessments authorities require applicants to undertake - these should be suitable for a range of participants e.g. including older drivers
ISPs should be developed collaboratively with organisations representing the interests of disabled people and people with other protected characteristics. This should be based on accurate and up-to-date evidence of need and usage. To support the production and updating of an ISP, authorities should survey existing and potential disabled passengers at least every 5 years, building an understanding of the extent to which the vehicles and services provided by taxi and private hire vehicle fleets adequately support the needs of all passengers and whether driver training needs are being met.
ISPs should be policy documents first and foremost, intended to demonstrate publicly authorities’ commitment to improving accessibility continually. They may, however, also serve to demonstrate to passengers the steps being taken to improve services. Authorities should consider how the content can be made more accessible to the public. They should in any case always be made available on authority websites and in alternative accessible hard copy formats, consistent with authorities’ legal equalities duties.
ISPs should be updated at least every 5 years, to ensure decisions are based on an up-to-date understanding of passenger needs. ISP reviews should align with other periodic aspects of licensing practice and, where possible, the production of the local transport plan.
ISPs should be developed with an awareness of the context facing disabled passengers. Unfortunately, too many disabled people still report receiving inadequate service from taxi and private hire vehicle operators and drivers, or a lack of support from licensing authorities when they report alleged discrimination. In the three years after rules on the carriage of wheelchair users were introduced, over 30% of authorities had not implemented them, denying disabled passengers the right to be treated like anybody else.
Two decades have passed since the law made it illegal for taxis and private hire vehicles to refuse an assistance dog and yet today too many owners report that they continue to be refused carriage. Additionally, disabled people continue to face barriers when using taxis and private hire vehicles, for example from unhelpful drivers, vehicles with too high a step or a lack of handholds or being refused carriage and left waiting at the kerbside.
To ensure decisions taken on the regulation of services are informed by the lived experiences of disabled people, authorities should take steps to ensure that policy makers and staff dealing with the public understand the barriers that disabled people can face when using transport services. Therefore, relevant authority staff should complete disability awareness training.
ISPs should also take into account any authority rules on the specification of licensed vehicles, including the ease with which they can be converted to convey passengers seated in a wheelchair. We understand that there is a particular challenge with some electric vehicles, and authorities should ensure they have considered fully the impact of any decision to require the use of such vehicles before changing licensing requirements.
4.7 Assistance for all passengers
Drivers and operators have specific duties not to discriminate against disabled passengers generally, and passengers in wheelchairs or who are accompanied by assistance dogs specifically. However, they also have general duties not to discriminate against anybody on account of their protected characteristics and proactively to provide reasonable adjustments that permit disabled passengers specifically to access their services. Although such general duties are enforced by disabled people through the Civil Courts, authorities have a role to play in creating an expectation that every potential passenger should be valued, regardless of any protected characteristic, and that any passenger requiring reasonable assistance is provided with it.
As a matter of course, drivers should help passengers to stow mobility aids, pushchairs and luggage, to ensure that older, younger or disabled passengers leave the vehicle safely away from traffic, and support customers to use card readers or count their change. Authorities can reinforce this through communications and training but could also include relevant requirements in licensing conditions or byelaws, which can be enforced by the authority.
All licensing authorities must comply with the Public Sector Equality Duty (PSED) (see Section 149 of the Equality Act 2010) when taking decisions concerning the provision of taxi and private hire vehicle services and supporting infrastructure. Licensing authorities must also ensure that reasonable adjustments are made to remove physical barriers preventing disabled people from accessing taxi and private hire vehicle services.
Licensing authorities should provide a straightforward, accessible means of reporting alleged instances of discriminatory behaviour, including a dedicated email address and a telephone number. They should also take proactive steps to investigate allegations, interview passengers, and seek relevant evidence from operators and partner agencies.
Cases should be prosecuted where there is sufficient evidence to identify the driver and substantiate the claims made. The guidance on the assessment of convictions provided with the Statutory Taxi and Private Hire Vehicle Standards states that where an applicant has a conviction involving or connected with discrimination in any form, a licence will not be granted until at least seven years have elapsed since the completion of any sentence imposed. Licensees convicted of such offences should be subject to the same standards.
Where a complaint about discrimination is received that will not result in a conviction, licensing authorities should consider a range of outcomes and take appropriate action based on the balance of probabilities. Licensing sanctions should be considered, such as suspension or revocation. The licensing authority must give full consideration to the available evidence before any decision is made and the licensee should be given the opportunity to state their case. Possible outcomes would include no action being taken and the complaint being recorded, a suspension until disability and equality awareness training/assessment is completed, or revocation of a licence and a refusal to issue another for an appropriate period.
4.8 Assistance dogs
To mitigate barriers relating to the carriage of an assistance dog, authorities must comply with the Public Sector Equality Duty (PSED) (see Section 149 of the Equality Act 2010) when taking decisions concerning the provision of taxi and private hire vehicle services. This includes adoption of any policies affecting the carriage of assistance dogs in taxis and private hire vehicles or the investigation and, where appropriate, prosecution of drivers alleged to have discriminated against their owners.
Licensing authorities should:
- remind operators and drivers regularly of their duties under sections 168 to 171 of the Equality Act 2010 and of the authority’s intention to prosecute those that refuse to comply
- make it simple for passengers to report alleged instances of illegal discrimination relating to the carriage of assistance dogs
- investigate all such alleged instances, and prosecute drivers where sufficient evidence is identified
- where drivers are legally exempt from carrying assistance dogs, provide them with a card confirming this in large print and Braille, in addition to the statutory exemption notice
- invite operators and drivers to meet with assistance dog owners and learn about the role they play
- work with organisations, such as the Guide Dogs for the Blind Association, to produce hand out material which can be provided to operators and drivers
- encourage drivers to accept the carriage of trainee assistance dogs, which can benefit service accessibility by familiarising operators and drivers with the role of respective dogs and by helping the dogs to learn to behave appropriately when travelling by taxi or private hire vehicle
- build relationships with private hire vehicle operators to encourage proactive reporting of drivers alleged to have discriminated against passengers with assistance dogs, and provision of relevant evidence to support the authority’s investigation.
- consider implementing policies at a local level which provide for categories of assistance dogs other than those prescribed at s173 of the Equality Act 2010 to travel in vehicles, where this is deemed appropriate
5. Enforcing the licensing regime
This section reiterates the importance of this function as outlined in the Statutory Taxi and Private Hire Vehicle Standards.
Implementing an effective framework for licensing authorities, to ensure that a full range of information is made available to suitably-trained decision makers who are supported by well-resourced officials, is essential to a well-functioning taxi and private hire vehicle sector. Whilst this helps prevent the licensing of those that are not deemed ‘fit and proper’, it does not ensure that those already licensed continue to display the behaviours and standards expected.
5.1 Setting expectations and monitoring
Licensing authorities should ensure that licensees are aware of the policies to which they must adhere, are properly informed of what is expected of them, and the repercussions for failing to do so.
The provision of a clear, simple and well-publicised process for the public to make comments and complaints about drivers, vehicles and operators will enable authorities to recognise and promote excellence and target compliance and enforcement activity. This will provide a further source of intelligence when considering the renewal of licences and of any additional training that may be required.
It is then for the licensing authority to consider if any intelligence indicates a need to suspend or revoke a licence in the interests of public safety or due to discriminatory behaviour, or to prosecute drivers in the Magistrates’ Court for evidenced breaches of sections 165, 168 or 170 of the Equality Act 2010.
Authorities should note that it can be particularly difficult for disabled passengers, including those who are visually impaired, to provide evidence of incidents. They may not, for instance, always be able to identify a driver visually. Authorities should still investigate such reports thoroughly, including taking statements from passengers, drivers and witnesses, accepting video or audio recordings as evidence where appropriate, and seeking evidence from partner agencies and from private hire vehicle operators (where relevant).
Where operators or drivers are prosecuted for Equality Act 2010 offences enabling those affected to give evidence in court may help to strengthen the authority’s case, crystalise the harm caused to individuals, and increase complainants’ confidence in the enforcement process. It is our view that prosecuting drivers and operators for offences under the Equality Act 2010, rather than relying solely on licensing sanctions, is proportionate to the harm caused by such discrimination and is vital to increasing the confidence of disabled passengers to use services.
We therefore recommend that cases are prosecuted where sufficient evidence exists and doing so would be in the interest of the inhabitants of the area. Blanket policies on not prosecuting offences may be incompatible with authorities’ wider equalities duties.
Well-directed compliance and enforcement activity by the licensing authority benefits not only the public but also the responsible people in the taxi and private hire vehicle trades. Indeed, it could be argued that public safety depends upon licensing authorities having effective compliance and enforcement mechanisms in place. This includes actively seeking out those that operate outside the licensing system, not just those who come forward seeking the appropriate licences.
The resources devoted by licensing authorities to enforcement will vary according to local circumstances, including, for example, any difficulties with touting by unlicensed drivers and vehicles (a problem in some urban areas). Licensing authorities will also wish to liaise closely with the police. Multi-agency enforcement exercises (involving, for example, the Department for Work and Pensions) have proved beneficial in some areas.
Licensing authorities often use enforcement staff to check a range of licensed activities (such as premises selling alcohol, market traders etc.) as well as the taxi and private hire vehicle trades, to make the best use of staff time. But it is desirable to ensure that taxi and private hire vehicle enforcement effort is at least partly directed to areas where there is an evening or late-night economy, when problems such as touting and illegal standing or plying for hire tend most often to arise. In formulating policies to address these issues, licensing authorities should be aware of the Sentencing Council’s guidelines that specifically consider taxi touting/soliciting for hire and ensure those considering cases are aware of these and further guidelines on offences committed for ‘commercial’ purposes.
5.2 Test purchasing
Test purchasing can be a powerful tool in identifying drivers and operators that are not complying with the requirements and standards an authority expects of its licensees; and those that are unlicensed, uninsured and unvetted who are seeking to illegally carry passengers.
This tool can be particularly useful in identifying those who discriminate against disabled passengers, particularly as evidencing ad hoc incidents can be difficult for the passengers concerned. Authorities have used disabled staff volunteers to run such exercises, targeting locations or particular operators linked to complaints about discrimination, with enforcement officers on hand to take evidence to support potential future prosecutions. Publicising the use of such approaches may act as a deterrent to licensees considering refusing carriage to a disabled person.
Licensing authorities should consider seeking legal advice before undertaking any covert test purchasing activity that will or is likely to take place inside a vehicle. This is so that an assessment can be made as to whether the proposed activity is considered to be covert surveillance (either directed surveillance or intrusive surveillance) under the Regulation of Investigatory Powers Act 2000 (RIPA). More information on directed and intrusive surveillance can be found in the Covert Surveillance and Property Interference Code of Practice.
Test purchase activity does not in general require a covert human intelligence sources (CHIS) authorisation under RIPA as vendor-purchaser activity does not normally constitute a relationship as the contact is likely to be so limited. However, if repeat contact is made with the same driver or operator to encourage familiarity, a relationship may be established for a covert purpose and a CHIS authorisation should be considered.
5.3 Joint authorisation of enforcement officers
Licensing authorities should, where the need arises, jointly authorise officers from other authorities so that compliance and enforcement action can be taken against licensees from outside their area. An agreement between licensing authorities to jointly authorise officers enables the use of compliance and enforcement powers regardless of which authority within the agreement employs the officer and which issued the licence. This will mitigate the opportunities for licensees to evade regulation. Such an agreement will enable those authorities to take action against vehicles and drivers that are licensed by the other authority when they cross over boundaries. A model for agreeing joint authorisation is contained in the LGA Councillors’ handbook.
5.4 The Community Safety Accreditation Scheme
The Community Safety Accreditation Scheme (CSAS) is a voluntary scheme under which chief constables can choose to accredit employed people already working in roles that contribute to maintaining and improving community safety with limited but targeted powers. These roles include neighbourhood wardens, hospital security guards, park wardens, shopping mall guards and train guards and local authority enforcement officers.
The scheme creates a framework for public and private bodies to work in partnership with the police, providing additional uniformed presence in communities and capitalising on the skills and information captured by those already engaged with the community.
All schemes are managed, monitored and assessed at a local level by the responsible police force. Main benefits of the scheme include:
- increasing uniformed presence on the streets (CSAS accredited persons wear the uniform of their employing organisation, with an identification badge endorsed by the local police force)
- saving valuable police time in community safety
- promoting partnership working and the two-way exchange of information and intelligence between agencies
For more information about CSAS in your area, please contact your local police force.
5.5 Points-based enforcement systems
To increase compliance with licensing requirements some licensing authorities operate a points-based system, which allows minor breaches of the rules to be recorded and considered in context, while referring those with persistent or serious breaches to the licensing committee (or other bodies charged with reviewing). Such systems can provide greater consistency in enforcement and make better use of the licensing committee’s time. Authorities that operate a points-based enforcement system should make clear to licensees that these are separate to the ‘penalty points’ (endorsements) that the courts can put on a motorist’s licence. As set out at 5.1, licensing authorities that use a points-based system should ensure that licensees are aware of the policies to which they must adhere, are properly informed of what is expected of them, and the repercussions for failing to do so - the points for specific breaches should be clearly set out.
Where a points-based enforcement system is in operation points incurred should remain on the record for a fixed period. The usual duration of a driver and private hire vehicle operator licence is 3 and 5 years respectively. To ensure that all past behaviour is taken into account when considering whether to grant a new licence, the department recommends that points should remain on the record from the date of the incident for a minimum of 3 years for drivers and a minimum of 5 years for private hire vehicle operators.
It should be noted that reaching a points limit must not result in an automatic action but should be used to trigger a review of the conduct of the licensee and whether further action is necessary to address any concerns. Such action might be undertaking additional training not just a suspension or revocation. Licensing authorities should however consider whether a review is undertaken in situations where points are incurred within a short period but have not reached a review point; for example, a rapid accumulation of points may indicate deteriorating standards or increasingly unsatisfactory conduct.
5.6 Suspension and revocation of driver’s licences
Section 61 of the Local Government (Miscellaneous Provisions) Act 1976, section 16 of the Private Hire Vehicles (London) Act 1998 and section 19 of the Plymouth City Council Act 1975 provide licensing authorities with the ability to suspend or revoke a driver’s licence.
Following the High Court’s decision in Singh-v-Cardiff City Council 2012 EWHC 1852 Admin, the interim suspension (pending investigation or trial) of a licence is no longer practicable. A decision to suspend a licence is a final decision and should not be made before a reasoned determination has been made that one of the above grounds (detailed in the relevant aforementioned act) has been met.
Before any decision is made, the licensing authority must give full consideration to the available evidence and the driver should be given the opportunity to state their case. As with the initial decision to license a driver, this determination should be reached based on probability, not on the burden of beyond reasonable doubt. If a period of suspension is imposed, it cannot be extended or changed to revocation later.
A decision to revoke a licence does not prevent the reissuing of a licence if further information is received that would alter the balance of probability, nor does a suspension prevent a subsequent decision to revoke. The decision to suspend or revoke is based on the evidence available at the time it made the determination. New evidence may, of course, become available later.
New evidence may be produced at an appeal, leading the appeal court to a different decision to that reached by the licensing authority. Alternatively, an appeal may be settled by agreement between the licensing authority and the driver on terms which, in the light of new evidence, become the appropriate course. If, for example, the allegations against a driver were now, on the balance of probability, considered to be unfounded, a suspension could be lifted and if the licence was revoked, an expedited re-licensing process used.
A suspension may still be appropriate if it is believed that a minor issue can be addressed through additional training or following a review of the individual circumstances where the limit of a points-based system is met. In this instance, the licence would be returned to the driver once the training has been completed without further consideration. This approach is clearly not appropriate where the licensing authority decides that, based on the information available at that time and on the balance of probability, the driver presents a risk to public safety.
Section 61(2B) Local Government (Miscellaneous Provisions) Act 1976 and section 17(2) of the Private Hire Vehicles (London) Act 1998 enable licensing authorities to suspend or revoke a taxi or private hire vehicle driver’s licence with immediate effect on the grounds that it is in the interest of public safety and provided that the appropriate form of notice is given. In other cases, the suspension or revocation will take effect 21 days after the appropriate notice is given. The department is not proposing to issue any specific guidance on this issue of when immediate suspension or revocation of a licence is appropriate, preferring to leave it to the discretion of licensing authorities as to when the power should be used.
5.7 Suspension and revocation of vehicle licences
Section 60 of the Local Government (Miscellaneous Provisions) Act 1976, section 16 of the Private Hire Vehicles (London) Act 1998 and section 18 of the Plymouth City Council Act 1975 provide licensing authorities with powers to suspend or revoke vehicle licences.
In addition, licensing authorities have powers to inspect and test taxis and private hire vehicles. If the licensing authority is not satisfied as to the fitness of the vehicle, or as to the accuracy of the taximeter in the case of taxis, they can suspend the vehicle licence and require the vehicle or the taximeter to be made available for further inspection. If the authority is not satisfied as to the fitness of the vehicle or accuracy of the taximeter after 2 months, this can lead to revocation of the vehicle licence - see section 68 of the Local Government (Miscellaneous Provisions) Act 1976, section 9 of the Private Hire Vehicles (London) Act 1998 and section 26 of the Plymouth City Council Act 1975 for further details.
5.8 Suspension and revocation of private hire vehicle operator licences
Section 62 of the Local Government (Miscellaneous Provisions) Act 1976 provides authorities with wide powers to suspend an operator’s licence, section 20 provides a similar power under the Plymouth City Council Act 1975. Transport for London may, under section 16(2) of the Private Hire Vehicles (London) Act 1998, suspend or revoke an operator’s licence. Additionally, if in the interests of public safety, the suspension or revocation may take effect immediately under section 17(2) of the 1998 act. Otherwise, the suspension or revocation takes effect 21 days after the appropriate notice is served.
6. Driver licensing
6.1 Duration of driver licences
The Local Government (Miscellaneous Provisions) Act 1976 (as amended), the Private Hire Vehicles (London) Act 1998 and the Plymouth City Council Act 1975 set a standard length of 3 years for taxi and private hire vehicle driver licences. Any shorter duration licence should only be issued when the licensing authority thinks it is appropriate in the specific circumstances of the case. For example, where the licence holder’s leave to remain in the UK is time-limited, the licensee has requested a shorter duration or the licence is only required to meet a short-term demand. Taxi and private hire vehicle licences should not be issued on a ‘probationary’ basis.
6.2 Fit and proper test
The Statutory Taxi and Private Hire Vehicle Standards sets out the approach licensing authorities should take in respect to the fit and proper test. However, in addition to those checks provided in the statutory standards, as a minimum, the department would expect all applicants to undergo an assessment of their medical fitness. Before making a decision on a person’s application for, or for the renewal of, a driver’s licence a licensing authority must search the database provided by the National Anti-Fraud Network, the National Register for Revocations, Refusals and Suspensions (NR3S), for entries relating to the applicant.
This requirement to search the database arises under the Taxis and Private Hire Vehicle (Safeguarding and Road Safety) Act 2022. The responsibilities of licensing authorities to share safeguarding and road safety concerns about taxi and private hire vehicle drivers with each other under this act are outlined in statutory guidance.
6.3 Disability awareness
Drivers should be trained in disability awareness and/or have their knowledge and skills assessed. Drivers should also be encouraged, through targeted and general communications, to uphold the highest standards of customer service. The training or assessment should include but not be limited to:
- the features of an inclusive, high quality service
- appropriate attitudes, behaviours and skills
- assistance that can be provided to all passengers
- the protected characteristics, and related Equality Act 2010 duties
- understanding the different barriers that disabled people face when using taxis and private hire vehicles, and how they might be identified
- the role of taxis and private hire vehicles in enabling disabled people to be independent and the role of drivers and operators in facilitating this
- how to communicate with people with different communication needs
- how to assist people with a range of visible and less visible impairments
- supporting wheelchair users to board, alight and travel in safety and comfort whilst seated in their wheelchair
- the identification and role of assistance dogs
- legal obligations towards disabled passengers and the consequences of not complying with them
- an assessment of the trainee’s knowledge and skills
The REAL disability equality training programme created on behalf of the Department for Transport, which includes common content for all modes as well as content developed for taxi and private hire vehicle drivers may provide a foundation for the development of courses meeting these requirements and should be considered when assessing disability awareness training needs.
Licensing authorities should encourage drivers to learn British Sign Language, including contributing to related costs.
6.4 Driver proficiency
The Road Safety Statement published in 2019 stated that:
The need to improve road safety does not end with the driving test; nor does it exclude those who drive or ride professionally or as part of their job.
Licensing authorities should require taxi and private hire vehicle drivers, as professional drivers, to display a higher degree of driving aptitude and diligence than a private motorist. This is considered appropriate and proportionate and is consistent with other elements of taxi and private hire vehicle driver licensing, for example, medical and vision assessments.
The ability to drive a car is tested when obtaining a driving licence. Nevertheless, evidence shows that driving behaviours are a significant contributor to road collisions. Factors such as fatigue, distractions and excess speed contribute significantly to collisions; excess speed alone accounted for 12 percent of all road traffic collisions in 2021 and 25 percent of those that resulted in a fatality. As professional drivers, for whom time is money, an appreciation of the effect of additional distractions and pressures which can negatively influence their driving behaviours is particularly relevant.
Licensing authorities should require taxi and private hire vehicle drivers to undertake training and/or assessment focussed on attitudes and behaviours, such as those provided by IAM Roadsmart and the Royal Society for the Prevention of Accidents (RoSPA), at first application and renewal (typically every 3 years). Where an authority has specific concerns about the driving ability of a driver, for example through passenger complaints, it would be appropriate for the authority to consider whether the driver in question should undertake a practical driving ability training course or assessment to address those concerns.
6.5 Acceptance of non-UK driving licences
Individuals can drive legally in the UK with non-UK car and motorcycle licences for up to 12 months. Some individuals will then be required to (or may wish to) exchange a licence issued by another country. A tool is available to provide more information on which licences must be exchanged as well as the requirements and processes involved.
6.6 Medical and vision assessment
There is general recognition that it is appropriate for taxi and private hire vehicle drivers to have more stringent medical standards than those applicable to normal car drivers because:
- they carry members of the general public who have expectations of a safe journey
- they are on the road for longer hours than most car drivers
- they may have to assist disabled passengers and handle luggage
Licensing authorities should apply the Group 2 medical required for an entitlement to drive lorries (category C) and for buses (category D).
All initial category C and D licence applications require a medical assessment by a registered medical practitioner - recorded on the D4 form, this does not need to be the applicant’s GP. Category C and D licence holders are required to make a medical declaration at each renewal of their category C or D driver’s licence (every 5 years) until the age of 45 when an assessment is required again.
From age 45 an assessment is required every 5 years until the age of 65 when the requirement is an annual medical assessment.
Though it is not a requirement, the DVLA recommends that drivers who submit a medical report with an application or renewal for a category C and D licence should obtain this from a doctor with access to their full medical records. When conducting medical investigations, the DVLA will write to the driver’s GP or consultant if further medical information is required; licensing authorities should do the same.
It is the responsibility of licensing authorities to assess the medical information they receive and decide whether a taxi or private hire vehicle licence should be issued. It is not the responsibility of the medical professional that provides the information to do this. Licensing authorities should seek the same information to inform their decision as required by the DVLA for category C and D licences. It is therefore suggested that DVLA’s medical examination report (D4) is used as a template for licencing authorities to gather relevant information.
Detailed guidance on assessing medical fitness to drive is available in DVLA’s Assessing fitness to drive – a guide for medical professionals.
6.7 Immigration checks
The Immigration Act 2016 (section 37 and Schedule 5) amended existing licensing regimes in the UK to prevent illegal working in the taxi and private hire vehicle sector, as drivers and operators. Licensing authorities are prohibited from issuing a licence to anyone who is disqualified by reason of their immigration status, and they discharge their duty by conducting immigration checks. The Home Office have provided guidance for licensing authorities on this matter.
Being disqualified from holding a licence by reason of their immigration status means that the person is in the UK illegally, is not permitted to work, or is permitted to work, but is subject to a condition that prohibits them from holding a licence in this sector.
The requirement to check the immigration status of licence applicants is in addition to and does not amend or replace the existing ‘fit and proper’ test.
6.8 Age limits
It is not appropriate to set a maximum age limit for drivers. Medical fitness to drive should be regularly assessed. Minimum age limits, beyond the statutory periods for holding a full driving licence, also seem inappropriate. Applicants should be assessed on their merits, and to do otherwise may in any case be contrary to the Equality Act 2010, unless such restrictions can be justified in the public interest.
6.9 Language proficiency
The Statutory Taxi and Private Hire Vehicle Standards recommend that a licensing authority’s test of a driver’s proficiency should cover both oral and written English language skills. Written proficiency is relevant because this could affect a driver’s ability to understand written documents, such as policies and guidance relating to the protection of children and vulnerable adults, and applying this to identify and act on signs of exploitation. Oral proficiency will be relevant in identifying potential exploitation through communicating with passengers and their interaction with others.
Language proficiency will bring wider passenger benefits to those set out in the Statutory Taxi and Private Hire Vehicle Standards in terms of the driver’s ability to demonstrate an understanding of the desired destination, an estimation of the time taken to get there and other common passenger requests and for the driver to provide a legibly written receipt upon request.
6.10 Vocational training and assessment
The Statutory Taxi and Private Hire Vehicle Standards are clear that all drivers should be required to undertake safeguarding training to understand policies and guidance relating to the protection of children and vulnerable adults to identify and act on signs of exploitation.
Whilst the minimum recommended requirements for safeguarding and disability awareness training could be met by requiring drivers to undertake vocational qualifications, it does not have to be delivered through this route. As set out in section 3 of this document, licensing authorities should be able to demonstrate that any licensing conditions or requirements over and above that recommended by government are justified and proportionate.
Vocational qualifications provide a ‘snapshot’ of learning as they are awarded based on the curriculum of the course at the time it is taken. The training required of drivers will naturally evolve over time and so a vocational qualification may need to be supplemented with further training and assessment. An example of this is the inclusion of ‘county lines’ awareness as part of safeguarding training.
Given the need for driver knowledge and awareness to evolve and the potential need for periodic assessment, licensing authorities should not require applicants for a licence to have obtained a vocational qualification. If drivers and private hire vehicle operators wish to go beyond what is required to obtain a licence as part of their development or business model they can obviously do so, but it should not be a licensing requirement.
6.11 Topographical knowledge
Taxi drivers need a good working knowledge of the area for which they are licensed because taxis can be hired immediately, directly with the driver, at ranks or on the street and so drivers are not able to prepare a route. Licensing authorities should therefore require prospective taxi drivers to pass a test of local topographical knowledge as a pre-requisite to the first grant of a licence. The department’s view is that the stringency of the test should reflect the complexity or otherwise of the local geography, in accordance with the principle of ensuring that barriers to entry are not unnecessarily high.
Private hire vehicles are not legally available for immediate hiring. To hire a private hire vehicle the prospective passenger must go through an operator; the operator should gather sufficient information from the passenger to identify the collection and drop-off points, this will enable the driver to check the details of a route before starting a journey and plan or enter it in a navigation system. Given the availability, reliability and ease of use of sat nav systems, licensing authorities should not require any topographical knowledge or navigational tests for private hire vehicle drivers.
6.12 Intended use policies in respect of taxi drivers
Holders of taxi licences are permitted to carry pre-booked fares anywhere in England and Wales, reflecting that taxi drivers may carry passengers beyond the boundary of their licensing authority, the ‘compellable area’, and seek a return fare to avoid additional miles without a fare. We are aware that a number of licensing authorities have introduced a taxi ‘intended use’ policy when considering licence applications aimed at reducing the number of taxis working predominantly to carry prebooked fares in other areas rather than plying for hire in their licensed area.
Licensing authorities should require an applicant for a taxi driver licence to declare that they intend to work predominately within the licensing authority’s area. The residential address provided by the application should be considered in assessing the likelihood of this declaration being adhered to when assessing an application for a taxi driver licence.
6.13 Vehicle condition check
The driver of a vehicle is always legally responsible for its condition while in use. Licensing authorities should require drivers to conduct a walkaround check as part of a driver’s core role. Drivers can be fined up to £2,500, be banned from driving and get three penalty points for driving a vehicle in a dangerous condition. Annex 6 of the Highway Code provides information and rules about vehicle maintenance.
A driver should undertake a walkaround check before a vehicle is used. Where more than one driver will use the vehicle during the day’s running, the driver taking charge of a vehicle should make sure it is roadworthy and safe to drive by carrying out their own walkaround check.
Drivers should be required to retain the vehicle checklist as proof that they have undertaken the required vehicle check. Drivers should be made aware that they may be subject to sanctions if they are unable to produce this or it is clear that while the form has been completed, the check has not. Further sanctions may result against them, as well as vehicle proprietors, if they are found using a defective vehicle, especially if the condition of the vehicle is such that it is obvious no routine checks have occurred over several days.
A model vehicle checklist is available on GOV.UK landing page for this guidance.
7. Private hire vehicle operator licensing
The objective in licensing private hire vehicle operators is, again, the safety of the public, who will be using operators’ premises and the vehicles and drivers arranged through them. The Statutory Taxi and Private Hire Vehicle Standards sets out relevant safeguarding checks for operators, including criminality checks. In addition, the Department consider it appropriate to ensure that private hire vehicle operators administer their business correctly to be considered ‘fit and proper’. Licensing authorities should consider the following as part of their assessment.
7.1 Sources of information
Checking open-source information, cross checking information with bodies such as Companies House and the Office of the Traffic Commissioner can help licensing authorities assure themselves that the company is suitable to be licensed.
7.2 Disability awareness
The licensee and all staff in customer facing roles and people managing service delivery should be trained in disability awareness, or have their knowledge and skills assessed, and be encouraged through targeted and general communications to uphold the highest standards of customer service. Training or assessment should include but not be limited to:
- the features of an inclusive, high quality service
- appropriate attitudes, behaviours and skills
- assistance that can be provided to all passengers
- the protected characteristics, and related Equality Act 2010 duties
- understanding the different barriers that disabled people face when using private hire vehicles, and how they might be identified
- the role of private hire vehicles in enabling disabled people to be independent and the role of operators in facilitating this
- how to communicate with people with different communication needs
- how to assist people with a range of visible and less visible impairments
- the identification and role of assistance dogs
- legal obligations towards disabled passengers and the consequences of not complying with them
- an assessment of the trainee’s knowledge and skills
The REAL disability equality training programme created on behalf of the Department for Transport, which includes common content for all modes, as well as content developed for taxis and private hire vehicles may provide a foundation for the development of courses meeting these requirements, and should be considered when assessing disability awareness training needs.
Licensing authorities should require operators to ensure that any digital booking platforms comply with the WCAG 2.1 accessibility standard to Level AA and with the principles of the Public Sector Bodies (Websites and Mobile Applications) (No. 2) Accessibility Regulations 2018 as a minimum.
Cases should be prosecuted where there is sufficient evidence to substantiate offences under section 167A or section 170 of the Equality Act 2010, or where an operator has unlawfully discriminated against a passenger or failed to make reasonable adjustments under the same Act.
7.3 Private hire vehicle operators – duration of licences
The Local Government (Miscellaneous Provisions) Act 1976 (as amended) and the Private Hire Vehicles (London) Act 1998 set a standard length of licence of 5 years for private hire vehicle operators. Any shorter duration licence should only be issued when the licensing authority thinks it is appropriate in the specific circumstances of the case. For example, the licence holder’s leave to remain in the UK is time-limited, the licensee has requested a shorter duration, or the licence is only required to meet a short-term demand. Private hire vehicle operator licences should not be issued on a ‘probationary’ basis.
7.4 Insurance
It is appropriate for a licensing authority to check that appropriate public liability insurance has been obtained.
7.5 Health and Safety responsibilities
Health and safety law creates duties on businesses where requirements apply to workers in the same way as they do for employees. Guidance from the Health and Safety Executive (HSE) (Health and safety for gig economy, agency and temporary workers - HSE) outlines the different type of workers and what is expected of businesses who use their services.
In practice, this means establishing effective management arrangements and carrying out an assessment of the risks to workers while they are at work, and to other people who may be affected by their work activities. Any assessment should identify the significant risks affecting workers and others, and, importantly, identify measures to reduce those risks. For example, this includes how to ensure work-related road safety (see Driving for work for further guidance), training requirements and the provision and use of any protective equipment. The HSE also provide guidance for both employers and workers on protecting lone workers. This guidance applies to anyone contracted to work for an operator, including self-employed people.
Secured by Design (SBD) is the official police security initiative that works to improve security to provide safe places, including those in which to work. SBD’s product based accreditation scheme – the Police Preferred Specification - provides a recognised standard for all security products that can deter and reduce crime and includes those for lone workers.
Devices and apps are available to help employers protect lone workers, however they are not likely to be sufficient on their own. Operators must still manage the risks of working alone, including training, supervising and monitoring lone workers as well as keeping in touch with them and responding to any incidents.
In the department’s view, although it may not be the role of licensing authorities to enforce Health and Safety legislation, it is reasonable for any breaches of this legislation to be considered as part of the ‘fit and proper’ test. As stated in this guidance, the primary and overriding objective must be to protect the public.
7.6 Compliance with employment law
It is not within the scope of this guidance to offer an opinion on the employment status of private hire vehicle drivers, nor is it for licensing authorities to decide on these matters: only the courts can make rulings on employment status. The Department for Business and Trade has published guidance to make it easier for individuals and businesses to understand which employment rights apply to them.
In the department’s view, where an employment tribunal or a court of law has ruled on the employment status of a driver or drivers working for an operator, whether the operator is complying with that decision in respect of the driver(s) referred to in the ruling, should reasonably be considered by a licensing authority as part of the ‘fit and proper’ test for a private hire vehicle operator.
8. Vehicle licensing
The legislation gives licensing authorities a wide range of discretion over the types of vehicle that they can license as taxis or private hire vehicles. Some authorities specify conditions that in practice can only be met by purpose-built vehicles but the majority license a range of vehicles.
8.1 Specification of vehicle types that may be licensed
Normally, the best practice is for licensing authorities to adopt the principle of enabling as many different types of vehicles as possible to be licensed. Indeed, licensing authorities should set down a range of general criteria, leaving it open to the taxi and private hire vehicle trades to put forward vehicles of their own choice which can be shown to meet those criteria. In that way, there can be flexibility for new vehicle types to be readily considered.
Licensing authorities should give very careful consideration to a policy that automatically rules out particular types of vehicle or prescribes only one type or a small number of types of vehicle. For example, the department believes authorities should be particularly cautious about specifying that only purpose-built taxis can be licensed, given the strict constraint on supply that that implies. Nevertheless, purpose-built vehicles are amongst those that a licensing authority could be expected to license. It may also be too restrictive to automatically rule out considering multi-purpose vehicles, provided that the capacity of the vehicle is not more than 8 passengers.
The owners and drivers of vehicles may want to make appropriate adaptations to their vehicles to help improve the personal security of the drivers. Licensing authorities should look favourably on such adaptations, but, as mentioned in the section of this guidance on partitions in vehicles, they may wish to ensure that modifications are present when the vehicle is tested and not made after the testing stage.
8.2 Motorcycles
It is recognised that some licensing authorities may wish to license motorcycles as private hire vehicles. To assist those authorities the department has published guidance which outlines the standards and conditions which the department considers to represent best practice when licensing motorcycles as private hire vehicles.
8.3 Pedicabs
Pedicabs or rickshaws are pedal-powered vehicles in combination with a trailer designed to carry passengers. They include electrically assisted pedal cycles. Pedicabs offer short-distance, zero emission journeys. Outside London, pedicabs can be regulated as taxis. Where there is local interest in providing pedicab services, licensing authorities should make appropriate adjustments to their licensing requirements for drivers and vehicles to accommodate these requests. Under London legislation, pedicabs cannot be licensed as taxis.
8.4 Vehicle age limits
The frequency of testing required (see frequency of vehicle tests) to ensure the ongoing safety of vehicles is a separate issue to the setting of maximum age limits at first licensing, or maximum age limits beyond which an authority will not licence a vehicle.
The setting of an arbitrary age limit may be inappropriate, counterproductive and result in higher costs to the trade and ultimately passengers. For example, a maximum age for first licensing may have adverse unintended consequences. A 5-year-old used electric vehicle will produce less emissions than a new Euro 6 diesel or petrol car – enabling the trade to make use of previously owned vehicles will assist it to transition more rapidly to zero emission vehicles and improve air quality.
Licensing authorities should not impose age limits for the licensing of vehicles instead they should consider more targeted requirements to meet their policy objectives on emissions, safety rating and increasing wheelchair accessible provision where this is low.
8.5 Vehicle safety ratings
The increasing ability of a car to reduce or prevent injury during an impact is reported as having had the most significant effect on road casualty totals in recent years. Although numbers have remained broadly consistent since 2010, they still indicate 30% fewer fatalities in 2018 than a decade earlier.
Euro NCAP is an independent, not-for-profit, organisation which is widely recognised by the motor industry and road safety professionals as providing motorists with objective information on the crash safety of passenger cars. The 1-5 star rating helps consumers compare the safety potential of different models and is based on assessment in 4 important areas:
- adult occupant protection (for the driver and passengers)
- child occupant protection
- vulnerable road user protection (pedestrians and cyclists)
- Safety Assist, which evaluates driver assistance (for example, lane keeping and autonomous emergency braking) and occupant status (for example, seat belt reminders and driver monitoring) technologies
Evolving vehicle regulations and consumer information have supported this trend and a 2019 research paper considered differences in real-world injury outcome for occupants in cars rated by Euro NCAP. It concluded that the risk of fatal injury was reduced by 40% for occupants of a 5-star rated car when compared with an equivalent 2-star rated car.
The NCAP star rating system goes beyond type approval and not all new vehicles undergo Euro NCAP tests. A car that just meets the minimum type approval standards would not be eligible for any stars. This also means that a car which is rated poorly is not necessarily unsafe, but it is not as safe as its competitors that were rated better. As of 2021, Government Buying Standards for transport have required that new cars must have a minimum and valid 5-star Euro NCAP safety rating.
Licensing authorities should consider the safety benefits to passengers, drivers and pedestrians of vehicles which have received a higher NCAP rating, where these have been assessed, alongside the potential impacts on the availability of vehicles for passengers. Any requirements should be kept under review as the range of vehicles changes.
8.6 Environmental considerations
The UK is committed to a 2050 net zero target. This puts the UK on track to end our contribution to climate change, becoming one of the first major economies to legislate for net zero emissions. On transport, government is phasing out the sale of new petrol and diesel cars and vans, from 2035 all new cars and vans must be zero emissions at the tailpipe.
Where clean air zones are introduced, authorities will already be working to address local environmental considerations under the Clean Air Zones Framework. More widely, licensing authorities, in discussion with those responsible for environmental health issues, will wish to consider how its vehicle licensing policies can and should support any environmental policies adopted by the local authority. This will be particularly important in designated air quality management areas or low/ultra-low emission zones.
Licensing teams should work with council colleagues with air quality and climate responsibilities to ensure taxi and private hire vehicle fleets play their part in work to tackle local emissions. Leading areas cite large-scale change in these fleets needs a longer-term strategy, with a coordinated approach across council teams and local trades, that considers licencing requirements, other supportive policies (for example, try-before-you-buy scheme), and, in the context of moving to a fully zero emission vehicle fleet, a strategy for supporting the installation of electric vehicle charge points.
Taxis and private hire vehicles that operate predominantly in urban areas can be significant contributors to poor local air quality, if not properly maintained and regularly checked, due to their higher usage.
Licensing authorities should carefully and thoroughly assess the impact of vehicle emission requirements to enable the sector to plan for the future. The short-term objective should be to mitigate the harm from internal combustion engines through the setting of high EURO emission standards for example, EURO 6 but, in the long-term, the trade will need to be fully prepared for the end of the sale of new petrol and diesel cars and the need to transition to zero emission vehicles. Licensing authorities should set out their own long-term plan in good time.
In response to local air quality concerns, many licensing authorities are considering how to support the use of ultra-low or zero emission vehicles given the growing range of vehicles available. As stated in the vehicle age limit section of this guidance, greater flexibility regarding the age of vehicles licensed can result in more rapid improvement in air quality than mandating new ‘clean’ internal combustion engine vehicles.
8.7 Imported vehicles: type approval
It may be that, from time to time, an authority will be asked to license a taxi or private hire vehicle that has been imported independently (by somebody other than the manufacturer). Such a vehicle might meet the authority’s criteria for licensing, but the authority may nonetheless be uncertain about the wider rules for foreign vehicles being used in the UK. Such vehicles will be subject to the ‘type approval’ rules. For passenger cars up to 10 years old at the time of first GB registration, this means meeting the technical standards of either a GB vehicle type approval or an individual vehicle approval.
Most registration certificates issued since late 1998 should indicate the approval status of the vehicle. The technical standards applied (and the safety and environmental risks covered) under each of the above are proportionate to the number of vehicles entering service. Read further information about these requirements and the procedures for licensing and registering imported vehicles.
8.8 Tinted windows
For most cars on the road today, the minimum light transmission for windscreens is 75% and 70% for front side windows. There are no rules for tinting the windows rear of the B-pillar and vehicles are often manufactured with glass in the rear that is darker than the front, especially in luxury, estate and people carrier style vehicles.
There is a significant cost and inconvenience associated with requiring drivers to replace the standard manufacturer or factory specifications for window glass. Some passengers may feel more comfortable in vehicles that do not have very heavily tinted rear windows but there is a lack of evidence to suggest that these are detrimental to public safety. Balancing these factors, the department considers that licensing authorities should not require the removal of windows rear of the B-pillar if they have a minimum light transmission of 30% or above. This should maintain passenger confidence whilst ensuring a wide range of vehicles may be licensed.
The department recognises that a minimum light transmission of 30% for windows rear of the B-pillar might impact on executive hire vehicles, where passengers demand a higher degree of privacy. Some licensing authorities already grant executive hire vehicles plate exemptions, and they could determine that an exemption from the 30% minimum light transmission level for these vehicles is appropriate. Authorities should be assured that those vehicles are not used for ‘normal fares’.
Authorities should carefully consider the views of the public and the trade when considering the acceptance of ‘after-market’ tinting and should be assured that any after-market window tinting does not negatively affect the safety features of the glass it is applied to.
Read separate guidance about the rules for tinted vehicle windows.
8.9 An accessible fleet
The physical accessibility of vehicles used to provide taxi and private hire vehicle services is a significant factor in the inclusivity of the overall service provided. Wheelchair accessible vehicles are essential for wheelchair users who are unable to transfer from their wheelchair to the vehicle, or who prefer to travel in their wheelchair.
Licensing authorities should understand the demand for mixed fleets in its area and ensure that, when issuing licences, it has the right mix of vehicles. They should recognise that some designs of wheelchair accessible vehicles may not be suitable for some ambulant disabled passengers.
Licensing authorities should assess the demand for wheelchair accessible vehicles in its area on a 5-yearly basis and publish the results. If demand is not currently met, it should also provide an explanation about how the licensing authority plans to meet this demand. Licensing authorities should consider ways to incentivise an increase in wheelchair accessible vehicle provision. This may consist of licence fee rebates, access to bus lanes where agreed with the local highways authority, relaxation of other licensing requirements where it would otherwise be difficult to source appropriate wheelchair accessible vehicles, priority roadway access and, in the case of taxis, rank access.
8.10 Inclusive vehicle specifications
The design of non-wheelchair accessible vehicles licensed for use as taxis or private hire vehicles can also have a bearing on their accessibility. This guidance advises authorities to adopt the principle of setting down general criteria for vehicles and allowing drivers and operators to demonstrate how their vehicles fulfil them. When setting minimum criteria for newly licensed vehicles, authorities should consider factors which could influence the accessibility of vehicles to disabled passengers, including:
- the ease with which passengers can enter and leave the vehicle, including the height of steps and the positioning of seats
- the space available for assistance dogs to remain with their owner in the vehicle
- the space available for folded mobility aids in addition to other items of luggage
- the comfort and safety with which disabled people can use them
- wheelchair accessible vehicles (WAVs)
The government’s 2022 statutory guidance ‘Access to taxis and private hire vehicles for disabled users’ recommends that WAVs large enough to accommodate a passenger seated in a “reference wheelchair” should be designated formally as being “wheelchair accessible” for the purposes of section 167 of the Equality Act 2010.
This reflects the department’s view that a vehicle which is only able to accommodate smaller wheelchairs would not be accessible to the majority of wheelchair users. Authorities should also maintain a consistent policy on their support or otherwise for WAVs which wheelchair users enter through the rear door. Many wheelchair users find boarding and travelling in such vehicles can be easier and more comfortable, and authorities should consider permitting their use where this is not already the case.
We have undertaken a review of the reference wheelchair standard and believe that further consideration on its use is required. In the meantime, we suggest that licensed WAVs meet minimum size requirements and any changes in policy will be reflected in future guidance.
For some passengers in wheelchairs, only vehicles which enable them to board, alight from and travel whilst remaining in their wheelchair are accessible and it is important that sufficient vehicles of this category are available throughout the day to provide an acceptable service.
Other wheelchair users may be able to transfer onto the seat of a car, with or without assistance, with the wheelchair stored in the vehicle’s boot during the journey. For such passengers, and for some ambulant disabled people, for whom high steps and large open spaces may be difficult to negotiate, traditional WAVs may be challenging to access.
Licensing authorities should adopt policies on the minimum standards for WAVs, noting that some passengers need to use wheelchairs larger and heavier than the reference wheelchair.
A truly inclusive transport system is one where a mixed fleet is available, where wheelchair users can travel as easily as anybody else, and this means ensuring that there are sufficient suitable vehicles to serve their needs.
Licensing authorities should assess the demand for wheelchair accessible taxis and private hire vehicles within their jurisdiction at least every five years, aligning with the production of the local transport plan where possible, and take appropriate steps to ensure that the supply of suitably accessible vehicles meets the demand for them.
The assessment, targeted proportion, and details of the steps that will be taken to achieve it should be documented in the authority’s inclusive service plan.
8.11 Accessibility equipment
Authorities should consider the benefits of requiring additional accessibility equipment to be provided in vehicles beyond that which might be included in a standard vehicle specification, noting that the benefits to disabled customers in terms of their confidence and willingness to travel cannot always be monetised. Authorities should, as a minimum, require the installation of hearing loops in vehicles where an internal screen is fitted, to support passengers who are deaf or hard of hearing to communicate with drivers.
Authorities should also investigate options for making the payment process more accessible for visually impaired passengers. Whilst not widely used in the UK, ‘talking’ meters are used in other countries, and some payment card readers are more accessible than others. Implementing such interventions could support more disabled passengers to use taxi and private hire vehicle services with confidence.
Licensing authorities should ensure that such modifications are present when the vehicle is tested and not made after the testing stage.
8.12 Vehicle identification and signage
Members of the public can often confuse private hire vehicles with taxis, failing to realise that they are not available for immediate hire and that a private hire vehicle driver can only fulfil pre-booked requests. Greater differentiation in signage will help the public to distinguish between the two elements of the trade. To achieve this, licensing authorities should seek to differentiate the profile of private hire vehicles as these can only be legally engaged through a booking with a licensed operator.
Licensing authorities should not permit roof signs of any kind on private hire vehicles and should require all taxis to display a ‘taxi’ roof sign/box that can be illuminated when available for hire. Roof signs must comply with the Road Vehicles Lighting Regulations 1989. Permitting any sign/box on a private hire vehicle, regardless of the wording on such a sign, is likely to increase awareness of the vehicle and the likelihood of being mistaken for a taxi.
This increases the success of those illegally standing or plying for hire and may lead to confrontation when private hire vehicle drivers refuse a request for a journey that has not been pre-booked. Having an illuminated sign on taxis and prohibiting them from private hire vehicles will provide a simple way for the public to differentiate between the two services and we encourage all licensing authorities to promote this difference to raise public awareness.
Licensing authorities should not impose a livery requirement on private hire vehicles. The more distinctive a private hire vehicle is made to appear, the greater the chance that this might be confused with a taxi. To assist the differentiation further, licensing authorities which require taxis to be a particular colour should prevent private hire vehicles from being that same colour, unless they are easily identifiable i.e. they are purpose-built vehicles as is the case in many of our cities.
Licensing authorities’ private hire vehicle signage requirements should be limited to the authority licence plate or disc and a “pre-booked only” door sign.
This approach enables passengers to be given the clear and consistent message that you should only get in a vehicle that ‘has a taxi sign on the roof’ unless you have pre-booked a private hire vehicle and have received information from the operator to identify it.
A private hire vehicle driver and proprietor are free to work with more than one operator and licensing conditions or requirements that effectively tie a vehicle or driver into an exclusive relationship with an operator should not be implemented or should be discontinued where these are currently imposed. Examples of such policies are a requirement for the private hire vehicle to display the name of the operator under which it is operating by means of a permanent or semi-permanent sign, or to require a driver to advise the licensing authority of the operator who they intend to work for and require notification in advance of any change.
Where an exclusive relationship exists between the vehicle proprietor, driver and operator, a licensing authority should consider permitting the display of operator details in a discreet manner to not undermine the overall objective of enabling the public to differentiate easily between taxis and private hire vehicles. This might, for example, be through small branding on the rear of the vehicle.
Restrictions on the use of terms which might lead to confusion among the public are detailed in section 64 of The Transport Act 1980 in respect of roof-signs; to assist the public in differentiating taxis from private hire vehicles, similar restrictions should be applied to all signage on private hire vehicles. Signs which include the word “taxi” or ”cab”, whether singular or plural, or any word of similar meaning or appearance to any of those words, whether alone or as part of another word should not be permitted.
Licensing authorities should only exempt the display of a licence plate by a private hire vehicle in exceptional circumstances. ‘Executive hire’ services are licensed as private hire vehicles and licensing authorities should assure themselves that there is sufficient justification to exempt these vehicles from a requirement to display a plate or disc and that there is an effective means to prevent the vehicle being used for ‘normal’ private hire work.
8.13 Passenger capacity
Licensing authorities are responsible for deciding how many passengers a taxi or private hire vehicle is licensed to carry. Whilst the Vehicle Registration Certificate (V5C) issued by the Driver and Vehicle Licensing Agency states the seating capacity of a vehicle, licensing authorities are entitled to restrict the passenger carrying capacity in the interest of convenience and comfort. When considering limiting the passenger carrying capacity on the grounds of comfort, authorities should consider the principles set out in the Competition and Market Authority’s guidance.
Licensing authorities should consider whether there may be a safety risk for passengers in terms of ‘third row’ seats, if passengers must move other seats with which they are unfamiliar to enter or exit the vehicle in an emergency situation. Should these seats be included in the licensed seating capacity, licensing authorities should require operators to advise passengers in advance that some seats have restricted access and so may be unsuitable for those with mobility difficulties.
Given the benefits of seatbelts, the department considers that taxis and private hire vehicles should not be licensed to carry more people than the number of seatbelts available. Though rear-facing seats do not require a seatbelt, they often are equipped with one. Vehicles that have a designated space for the carrying of a wheelchair should have this space considered in the vehicle’s licensed capacity.
8.14 Carrying children
The safest way for a child to travel by car is in an appropriate car seat. It is however unreasonable and impractical for a taxi or private hire vehicle to carry a range of seats to meet the possible needs of all passengers. If the correct child car seat has not been provided, the law allows children to travel in taxis and private hire vehicles, but only if they travel on a rear seat; children under three can travel in a rear seat without a seat belt, and children who are three or older must wear an adult seat belt.
Children aged 3 and over should always count towards the licensed capacity of the vehicle because if an appropriate car seat is not available, they must wear an adult seat belt. Children under the age of 3 do not need to wear an adult seatbelt when an appropriate car seat is not available, so they do not need to count towards the licensed capacity. Licensing authorities should provide advice to licensees on its policy on the carriage of children under three years to provide certainty in terms of overloading and refusal of carriage in such situations.
Further information on the carriage of children safely in taxis and private hire vehicles has been published by the Royal Society on the Prevention of Accidents (RoSPA) with the support of the Department for Transport. Drivers and operators should be made aware of this guidance to ensure compliance with the law and to protect passengers.
8.15 Personal security
The personal security of taxi and private hire vehicle drivers and staff must be considered. Section 17 of the Crime and Disorder Act 1998 requires local authorities and others to consider crime and disorder reduction while exercising all their duties. Authorities should ensure that security adaptations (for example, partitions in vehicles) do not prevent drivers from fulfilling their legal obligations towards disabled passengers. For example, whilst front seats may not be included in occupancy numbers or generally used by passengers where security screens are fitted, some disabled people may require access to the front seat to complete a journey comfortably and safely, thereby reducing the numbers carried in the back.
To emphasise the reciprocal aspect of the taxi and private hire vehicle services, licensing authorities should make available signs or notices which set out not only what passengers can expect from drivers, but also what drivers can expect from passengers who use their service. Two sample notices have been provided for illustrative purposes but licensing authorities are encouraged to formulate their own, in the light of local conditions and circumstances.
Licensing authorities should seek to build good links between the taxi and private hire vehicle trades and the local police force, including participation in any community safety partnerships.
The Health and Safety Executive list the installation of CCTV with visible signage as a successful measure to improve safety. Community safety partnerships are also required to invite public transport providers and operators to participate in the partnerships. Research has shown that anti-social behaviour and crime affects taxi and private hire vehicle drivers and control centre staff. It is therefore important that the personal security of those working in the sector is considered.
Other security measures include guidance, talks by the local police and conflict avoidance training. The department has issued guidance for drivers on staying safe:
8.16 Partitions in vehicles
Vehicles used by the trade that are not purpose built are unlikely to have a partition between the front and rear of the vehicle which may provide protection for the driver from assault. Partitions can be made from materials that withstand a knife attack or hard body impact and can be fitted and taken out easily.
The fitting of in-vehicle partitions must not cause the vehicle to be a danger to anyone in the vehicle or on the road, in compliance with regulation 100 of the Road Vehicles (Construction and Use) Regulations 1986. In order that the partition is effective in providing a means to separate drivers and passengers, the front passenger seat should not be included in the seating capacity of the vehicle licence where a partition is fitted. The department has published guidance on the design and fitting of screens to taxis and private hire vehicles not originally designed to have a screen.
Licensing authorities may wish to ensure that such modifications are present when the vehicle is tested and not made after the testing stage.
8.17 In-vehicle visual and audio recording – CCTV
The Statutory Taxi and Private Hire Vehicle Standards set-out the department’s position on this matter - that CCTV can provide additional deterrence to prevent crime and investigative value when it occurs. The use of CCTV can provide a safer environment for the benefit of taxi and private hire vehicle passengers and drivers by:
- deterring and preventing the occurrence of crime
- reducing the fear of crime
- assisting the police in investigating incidents of crime
- assisting insurance companies in investigating motor vehicle accidents
The statutory standards state that all licensing authorities should consult to identify if there are local circumstances which indicate that the installation of CCTV in vehicles would have either a positive or an adverse net effect on the safety of taxi and private hire vehicle users, including children or vulnerable adults, and taking into account potential privacy issues. Signs in the vehicle are required to highlight the presence of CCTV to passengers and an extra indicator is required to show when audio recording has been activated. The department’s view is that CCTV in vehicles can enhance both drivers’ and passengers’ safety and consideration of the merits of CCTV by licensing authorities must include both aspects.
Licensing authorities should review the Statutory Taxi and Private Hire Vehicle Standards for further information on consideration of mandating CCTV in taxis and private hire vehicles.
8.18 Emergency equipment
The Highway Code advises that should a vehicle catch fire, the occupants should get out of the vehicle quickly and to a safe place and not to attempt to extinguish a fire in the engine compartment, as opening the bonnet will make the fire flare. The National Fire Chief Council (NFCC) recommends that licensing authorities that require fire extinguishers to be provided in vehicles, should ensure that suitable and sufficient training is received by the drivers.
The NFCC’s advice is that if a licensing authority elects not to require drivers to undertake training on the safe way to tackle a vehicle fire, vehicles should not be required to carry fire extinguishers and drivers advised to get out and stay out of the vehicle and call 999, rather than attempting to firefight.
8.19 Vehicle testing
Licensing authorities must only license vehicles that are safe. It is therefore appropriate and proportionate that authorities require vehicles to pass rigorous safety checks. There is considerable variation between licensing authorities on vehicle testing, including the related but separate question of age limits. The following can be regarded as best practice.
Frequency of vehicle tests
The legal requirement is that private hire vehicles which are at least three years old, and all taxis, must be subject to an MOT test or its equivalent at least once a year. Local authorities may obtain a designation from the Secretary of State for Transport to issue ‘Certificates of Compliance’. The requirements of the test normally include those in an MOT test but may also include another inspection by a licensing officer to ensure the vehicle meets the relevant local requirements for issuing a taxi or private hire vehicle licence e.g. cleanliness of the vehicle inside and outside, correct plates displayed etc.
An annual test for licensed vehicles of whatever age (including vehicles that are less than three years old) seems appropriate in most cases, unless local conditions suggest that more frequent tests are necessary. More frequent tests may be appropriate for older vehicles which may be more prone to mechanical defects (see Vehicle age limits or for vehicles owned by proprietors that persistently present vehicles that do not meet the standards required by the authority. More information is also provided in the Environmental considerations section of this guidance.
Monitoring diligence
Licensing authorities should, where possible, obtain details of the test, including failures. Where testing arrangements do not make the sharing of this information possible, the licensing authority should use GOV.UK to check the MOT record of a vehicle to ascertain if any vehicle defects were identified during an MOT. Where licensing authorities designate where a vehicle must be inspected, and the outcome is not recorded on the MOT database, the authority should require the tester to provide them with the outcome of the test.
It is expected that diligent monitoring and maintenance of the vehicle condition by proprietors should result in few if any dangerous or minor defects being detected at on-road compliance checks. A vehicle proprietor should ensure that a vehicle is in a safe and satisfactory condition, frequent failures can be raised with the proprietor and authorities can consider whether they are content that the proprietor is taking sufficient action to monitor and maintain the safety of their vehicles.
Criteria for tests
MOT tests ensure that vehicles comply with roadworthiness and environmental standards which contribute to the government’s road safety strategy. It seems appropriate to apply the same criteria to taxis and private hire vehicles. However, taxis and private hire vehicles provide a service to the public, so it is also appropriate to set criteria for assessing the internal condition of the vehicle, for example, wheelchair fixings and restraint straps, though these criteria should not be unreasonably onerous.
Number of testing stations
As the application of the MOT standards is considered appropriate to ensure the mechanical safety of a vehicle it should be accepted that any DVSA approved testing centre is able to conduct this assessment in this respect and that any recent MOT will evidence the fact the vehicle is roadworthy. This approach maximises the testing capacity available to vehicle proprietors and allows licensing authorities to focus their testing capacity on any additional criteria that they consider necessary for taxi and private hire vehicles.
Licensing authorities should ensure that their testing standards are publicised and easily obtainable by applicants for vehicle licences.
9. Quantity restrictions of taxi licences outside London
9.1 Legal powers
The present legal provision on quantity restrictions for taxis outside London is set out in section 16 of the Transport Act 1985. This provides that the grant of a taxi licence may be refused for the purpose of limiting the number of licensed taxis if, but only if, the licensing authority is satisfied that there is no significant unmet demand for taxi services in their area.
In the event of a challenge to a decision to refuse a licence, the authority concerned would have to establish that it had, reasonably, been satisfied that there was no significant unmet demand.
9.2 Impacts of quantity restrictions
The Competition and Markets Authority was clear in its 2017 guidance on the Regulation of taxis and private hire vehicles: understanding the impact of competition that:
Quantity restrictions are not necessary to ensure the safety of passengers, or to ensure that fares are reasonable. However, they can harm passengers by reducing availability, increasing waiting times, and reducing the scope for downward competitive pressure on fares.
Most licensing authorities do not impose quantity restrictions. The department regards that as best practice. Where restrictions are imposed, the department would urge that the matter should be regularly reviewed. The matter should be approached in terms of the interests of the travelling public:
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What benefits or disadvantages arise for them because of the continuation of controls?
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What benefits or disadvantages would result for the public if the controls were removed?
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Is there evidence that removal of the controls would result in a deterioration in the amount or quality of taxi service provision?
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Are there alternative ways in which the issue could be addressed?
If alternative measures could be used to achieve the same effect, then the department believes these should be used in preference to quantity restrictions.
It has been observed that where quantity restrictions are imposed, vehicle licence plates command a premium, often of tens of thousands of pounds. This indicates that there are people who want to enter the taxi market and provide a service to the public, but who are being prevented from doing so by the quantity restrictions.
9.3 Demand surveys
If a licensing authority does nonetheless take the view that a quantity restriction can be justified in principle, there remains the question of the level at which it should be set, bearing in mind the need to demonstrate that there is no significant unmet demand. This issue is usually addressed by means of a survey. It will be necessary for the licensing authority to carry out a survey sufficiently frequently to be able to respond to any challenge to the satisfaction of a court. To assist in the inclusion of the taxi and private hire vehicle sector in Local Transport Plans these surveys should, where possible, follow the cycle of their production but should be undertaken at least every 5 years.
The following points should be considered when conducting a survey on quantity restrictions:
- waiting time at ranks
- waiting time for street hailing
- waiting time for telephone/online/app engagement
- latent demand (those that would choose to travel by taxi but do not due to excessive waiting times) peak demand (the most popular times for consumers to use taxis should not be discounted as atypical)
- assessments should consider whether the demand for WAVs has been met
The financing of demand surveys should be paid for by the local taxi trade through general revenues from licence fees. Other funding arrangements may call in to question the impartiality and objectivity of the survey process.
9.4 Consultation on quantity restrictions
As well as statistical demand surveys, assessment of quantity restrictions should include consultation with all those concerned, including user groups. User groups that typically use taxis (and/or private hire vehicles) the most include people with mobility difficulties, women, older people and those without access to a car. The views of the retail and hospitality sector (including hoteliers, operators of pubs and clubs and visitor attractions) should also be sought and considered, recognising that most taxi (and private hire vehicle) journeys are for leisure and shopping purposes.
The role taxis can play in dispersing the public that have enjoyed the night-time economy should not be ignored. Alongside pre-booked private hire vehicles, taxis may be the only means by which people can return home. Excessive waits for vehicles may lead to conflict among passengers or the increased use of unlicensed, unvetted and uninsured drivers and vehicles, both of which may then result in increased call upon police resources: they should therefore be consulted on any restrictions.
All local transport plans are expected to promote the use of active or public transport - taxis are frequently used for the ‘first and last mile’ of longer journeys that could be made using public transport. The views of the providers of other transport modes (such as train operators) should also be sought and considered if a quantity restriction is to be imposed.
All the evidence gathered in a survey should be published, together with an explanation of what conclusions have been drawn from it and why. If quantity restrictions are to be continued, their benefits to consumers and the reason for the level at which the number is set should be set out.
9.5 Reviewing quantity restrictions
The department’s view is that licensing authorities that elect to restrict taxi licences should review this decision and, if the policy continues, the quantity at least every 5 years and aligned to the production of local transport plans where possible. The department also expects the justification for any policy of quantity restrictions to be included in the local transport plan process where this is their responsibility. Licensing authorities should consider the following questions when considering quantity controls.
Have you considered the government’s view that quantity controls should be removed unless a specific case that such controls benefit the consumer can be made?
Questions relating to the policy of controlling numbers
- Have you recently reviewed the need for your policy of quantity controls?
- What form did the review of your policy of quantity controls take?
- Who was involved in the review?
- What decision was reached about retaining or removing quantity controls?
- Are you satisfied that your policy justifies restricting entry to the trade?
- Are you satisfied that quantity controls do not:
- reduce the availability of taxis
- increase waiting times for consumers
- reduce choice and safety for consumers
- What special circumstances justify retention of quantity controls?
- How does your policy benefit consumers, particularly in remote rural areas?
- How does your policy benefit the trade?
- If you have an accessibility policy, how does this fit with restricting taxi licences?
Questions relating to setting the number of taxi licences
- When last did you assess unmet demand?
- How is your taxi limit assessed?
- Have you considered latent demand, i.e. potential consumers who would use taxis if more were available, but currently do not?
- Are you satisfied that your limit is set at the correct level?
- How does the need for adequate taxi ranks affect your policy of quantity controls?
Questions relating to consultation and other public transport service provision
When consulting, have you included:
- those working in the market
- consumer and passenger (including disabled) groups
- groups which represent those passengers with special needs, children and other vulnerable groups
- local interest groups, e.g. hospitals or visitor attractions
- the police
- a wide range of transport stakeholders e.g. rail/bus/coach providers and traffic
- managers
Do you receive representations about taxi availability?
What is the level of service currently available to consumers (including other public transport modes)?
10. Taxi fare rates
10.1 Legal powers
Licensing authorities have the power to set maximum taxi fares for journeys within their area, and most do so. There is no power to set fares for private hire vehicles. Unlike most licensing functions, the setting of fares is an executive function, not a council function.
10.2 Setting taxi fare rates
Maximum fare rates should be designed with a view to practicality and reviewed regularly, including any variability of the fare rates dependent on time of day or day of the week. Authorities should consider adopting a simple formula for deciding on fare changes as this will increase understanding and improve the transparency of the process for passengers. The Department recommends that in reviewing fare rates, authorities should pay particular regard to the needs of the travelling public, with reference both to what it is reasonable to expect people to pay but also to the need to give taxi drivers the ability to earn a sufficient income and so incentivise them to provide a service when it is needed. There is likely to be a case for higher fare tariffs at times of higher demand to encourage more drivers to make themselves available or when the journeys are required at anti-social times.
To ensure that taxi tariffs reflect the costs of the trade they should be reviewed following significant changes in licensing fees and other major costs such as fuel. Regular reviews will assist drivers in maintaining their earnings and so continue to attract those seeking to become taxi drivers and provide existing licensees with greater confidence to remain in the trade and plan for future investment in new vehicles. Regular reviews will also avoid large changes in fares for passengers that infrequent reviews are more likely to result in.
The Competition and Markets Authority recognised in its 2017 report the need for licensing authorities to be responsive to patterns of demand, that they:
should monitor waiting times and consider adjusting the regulated fare cap to address mismatches between supply and demand. Addressing such mismatches is likely to benefit passengers.
10.3 Price competition in taxi fares
Taxi fare tariffs are a maximum, and in principle are open to downward negotiation between passenger and driver. It is not good practice to encourage such negotiations at ranks, or for on-street hailing; there would be risks of confusion and security problems.
Licensing authorities should however make it clear that published fares rates are a maximum. The growing use of telephone and electronic means to hire taxis means that passengers may benefit from competition and price comparison among taxi intermediaries. It is perfectly legitimate for taxi intermediaries to advertise discounted fares, such as ‘5% discount from fares.’
11. Taxi ranks and roadside infrastructure
Taxi ranks can provide a useful interchange between modes of transport and a focal point for taxis and passengers at peak periods. There are a number of aspects that should be considered when assessing the number and location of taxi ranks, including how ranks contribute to a wider transport policy and its success in delivering accessible transport as disabled users are less able to seek alternatives.
When providing new taxi ranks or redesigning areas of the built environment in which existing ones are located, authorities should seek to locate ranks as close as possible to transport interchanges and other key destinations that they serve in order to minimise walking distances for passengers and follow the Department for Transport’s Inclusive Mobility guidance and other sources of best practice in accessible street design. As well as the taxi trade, licensing authorities should seek the views of residents and other interested parties such as businesses in the night-time economy and transport hub operators.
The provision of taxi ranks should be subject to regular review. This will help authorities establish whether a change is required to current provision and how to make necessary amendments to ranks for the benefit of the travelling public. The department’s view is that, in the absence of regular engagement with the taxi trade on this issue, a review at least every 5 years strikes the right balance between the burden placed on licensing authorities, being responsive to changes in passenger uptake or changing patterns in people flow and, where possible, alignment with the production of local transport plans.
Taxi ranks late at night can become a hotspot for anti-social behaviour. These problems can be mitigated or even solved through a taxi marshal scheme in busy town and city centres. Such schemes can be jointly funded by taxi drivers and licensing authorities. Marshals can help local authorities support their night-time economy by fostering public confidence in taxis by encouraging users to form an orderly queue, eliminating potential flashpoints and moving people quickly and efficiently. It is also an opportunity to prevent the use of unlicensed vehicles plying for hire.
If feasible, a short-term waiting area for drivers of taxis picking up disabled passengers should be considered. This could be an area of the footway with a kerb assigned as a setting-down/picking-up point for people using taxis that have ramps designed for transfer directly to the footway.
Wheelchair access to most taxis is on the nearside, though some taxis load wheelchair users through the rear door or the far side door. Where taxi ranks are being designed or redeveloped, they should be designed to facilitate access into all vehicle types without creating safety risks for either customers or drivers.
Licensing authorities should work with local authority partners to ensure that vehicle priority measures, parking and waiting restrictions do not prevent disabled passengers from being picked up and/or dropped off close to their origin or destination. Taxi and private hire vehicle drivers, operators and those developing cycling infrastructure play a collective role in ensuring vulnerable road users can reach their destinations safely. The need for inclusively designed cycle infrastructure should be considered so that disabled passengers are able to access the kerbside with ease where possible. The local transport note guidance (LTN 1/20) supports authorities with the delivery of accessible cycling infrastructure, and further advice can be sought from Active Travel England.
Consideration should also be given to how disabled people relying on taxis and private hire vehicles will gain access to the kerbside on roads where access is prevented, such as areas where bus priority is implemented.
Authorities should also work with the operators of facilities served by a high volume of private hire vehicles to ensure that safe spaces are provided for drivers to collect passengers, without requiring them to navigate busy car parks alone.
Where information is provided at taxi ranks, authorities should consider including directions to nearby public toilet facilities.
12. Taxi zones
The areas of some licensing authorities are divided into two or more zones for taxi licensing purposes. Drivers may be licensed to ply for hire in one zone only. Zones exist for historical reasons, due to local authority boundary changes.
Taxi and private hire vehicle licensing is highly devolved with lower tier local authorities often responsible for administering the regime. The Department recommends the abolition of taxi zones. This would chiefly benefit the travelling public. Zoning tends to diminish the supply of taxis and the scope for customer choice – for example, if 50 taxis were licensed overall by an authority, but only 25 of them were entitled to ply for hire in each zone. It can be confusing and frustrating for people wishing to hire a taxi to find that a vehicle licensed by the relevant authority is nonetheless unable to pick them up (unless pre-booked) because they are in the wrong part of the authority’s area. Abolition of zones can also reduce costs for the authority, for example through simpler administration and enforcement. It can also promote fuel efficiency, because taxis can pick up a passenger anywhere in the authority’s area, rather than having to return empty to their licensed zone after dropping a passenger in another zone.
It should be noted that, in 2008, the government made a legislative reform order that removed the need for the Secretary of State to approve amalgamation resolutions made by licensing authorities. Although these resolutions no longer require the approval of the Secretary of State, the statutory procedure for making them – in paragraph 25 of schedule 14 to the Local Government Act 1972 – remains the same.
13. Flexible transport services
It is possible for taxis and private hire vehicles to provide flexible transport services in a number of different ways. Such services can play a valuable role in meeting a range of transport needs, especially in rural areas – though potentially in many other places as well.
The department encourages licensing authorities, as a matter of best practice, to play their part in promoting flexible services to increase the availability of transport to the travelling public. This can be done partly by drawing the possibilities to the attention of the taxi and private hire vehicle trade. It also should be borne in mind that vehicles with a higher seating capacity than the vehicles typically licensed as taxis (for example those with 6, 7 or 8 passenger seats) may be used for flexible services and should be considered for licensing in this context.
The main legal provisions under which flexible services can be operated are:
Shared taxis and private hire vehicles – advance bookings (section 11, Transport Act 1985): licensed taxis and private hire vehicles can provide a service at separate fares for passengers sharing the vehicle. The operator takes the initiative to match up passengers who book in advance and agree to share the vehicle at separate fares (lower than for a single hiring). An example could be passengers being picked up at home to go to a shopping centre or returning from the shops to their homes. The operator benefits through increased passenger loadings and total revenues.
Shared taxis – immediate hiring (section 10, Transport Act 1985): such a scheme is at the initiative of the local licensing authority, which can set up schemes whereby licensed taxis (not private hire vehicles) can be hired at separate fares by people from ranks or other places that have been designated by the authority. Authorities are required to set up such a scheme if holders of ten per cent or more of the taxi licences in their area ask for one. The passengers pay only part of the metered fare and without pre-booking, but the driver receives more than the metered fare.
Taxi and private hire vehicle buses (section 12, Transport Act 1985): owners of licensed taxis and private hire vehicles can apply to the Traffic Commissioner for a ‘restricted public service vehicle (PSV) operator licence’. The vehicle owner can then use it to provide a bus service for up to eight passengers. The route must be registered with the Traffic Commissioner and must have at least one stopping place in the area of the authority that licensed the taxi, though it can go beyond it. The bus service will be eligible for Bus Service Operators Grant (subject to certain conditions) and taxi/private hire vehicle buses can be used for local authority subsidised bus services. The benefits are that the travelling public have another transport opportunity opened for them, whilst taxi and private hire vehicle owners have another business opportunity.
14. Local transport plans and strategy
The Transport Act 2000 as amended by the Local Transport Act 2008, requires all local transport authorities in England, excluding London, to produce a Local Transport Plan (LTP), having regard to Government policy.
An LTP is a public facing document that sets out the future of transport in the local authority. LTPs should clearly articulate an integrated transport strategy drawn from a robust evidence base and vision for the local area, and also include an implementation plan that list the policies and interventions that will deliver the strategy.
All modes of transport including taxi and private hire vehicle services have a valuable part to play in the provision of local transport, and so licensing authorities are likely to have a role to play in delivering LTPs. The key policy themes for such services could be availability and accessibility. LTPs can cover:
- quantity controls, if any, and plans for their review
- licensing conditions, with a view to safety but also to a good supply of taxi and private hire vehicle services
- how passengers can access services, such as the provision of taxi ranks and safe areas for pick-up and drop-off points
- vehicle suitability and availability for people with disabilities
- vehicle emission standards and the location and capacity of electric vehicle charging infrastructure to support taxis and private hire vehicle to contribute to air quality objectives
- encouragement of flexible services
The Greater London Authority Act 1999 places a similar duty on the Mayor of London. The Mayor must publish a transport strategy to develop and implement policies for the promotion and encouragement of safe, integrated, efficient and economic transport facilities and services to, from and within Greater London. As above, taxi and private hire vehicle services have a valuable part to play in overall transport provision.
15. Tax checks in taxi and private hire vehicle licensing
HMRC introduced a tax registration check (tax check) for renewed applications in England and Wales to drive taxis and private hire vehicles and to operate a private hire vehicle business in April 2022.
An applicant who wishes to renew a licence needs to carry out a tax check. The licensing authority must obtain confirmation from HMRC that the applicant has completed the check before being able to consider their renewed licence application.
This aims to address part of the hidden economy by helping applicants for taxi and private hire vehicle driver and operator licences to understand their tax obligations and by making access to the licences they need to trade conditional on completing a tax check.
The rules apply to applications made by individuals, companies and partnerships, including Limited Liability Partnerships. Licensing authorities are required to signpost first-time applicants to HMRC guidance about their potential tax obligations and obtain confirmation that the applicant is aware of the guidance before considering the application.
Where the application is not a first-time application (a renewed application) the licensing body must, before considering the application, obtain confirmation from HMRC that the applicant has completed a tax check.
An applicant can carry out a tax check by providing information to enable HMRC to satisfy itself that the applicant has told HMRC about income earned under the licence. The check verifies that a person has complied with an obligation to notify their chargeability to tax, where such an obligation applied. The check is quick and easy to complete, and HMRC has developed a digital system to facilitate it. Additional help is also available to individuals who are digitally excluded or need extra support.
HMRC has published guidance for licensing authorities and applicants on how to complete checks.