Government will not legislate to deal with out-of-area restrictions

The Department for Transport (DfT) has recently reaffirmed its stance that the Government will not introduce legislation to deal with cross border hiring.

The department confirmed this in responses to questions at the recent LGA Licensing conference.  In the written responses to questions, the DfT wrote:

“Out-of-area or cross border working has been permitted for many years. The Local Government (Miscellaneous Provisions) Act 1976 permits a PHV journey to take place anywhere, so long as the driver, vehicle and operator are all licensed by the same authority. It was always possible for a PHV operator to sub-contract a booking to an operator licensed in the same area. Operators in Greater London have always been able to sub-contract bookings to operators in other areas; section 11 of the Deregulation Act 2015 extended that ability to operators outside of Greater London.

 

“The Government is aware of the challenges out-of-area working present to licensing authorities. Out-of-area working was one of the areas that the TFG on Taxi and PHV Licensing considered and on which it was not possible to reach a consensus. The Government’s response committed to consider, in more detail, the recommendation around tackling out-of-area working…Many approaches discussed have detrimental impacts for drivers, businesses, and ultimately passengers, along with congestion and air quality.

 

“There were particular concerns that restrictions on the availability of taxis and PHVs may impact adversely on passenger safety by increasing the use of unlicensed, unvetted and uninsured drivers and vehicles. Following this engagement with the sector, the Government concluded that it will not, at this time, take forward out-of-area restrictions.”

On a different subject, but related, the DfT added: 

“The Department is also currently considering the long-term regulation of passenger transport as part of the Future of Transport Regulatory Review. The Future of Transport Regulatory Review Call for Evidence last year sought views on which areas of the bus, taxi and PHV framework should be considered in future stages of the Review. As the Government’s summary of responses set out, there is a clear view that future regulation should focus on the purpose of the service rather than the capacity of the vehicle as is currently the case.”

This confirms there is therefore no new legislation for taxi and private hire vehicle (PHV) regulation forthcoming.  Instead, DfT said:

“We will consult shortly on updated Best Practice Guidance which will encourage every licensing authority to look afresh at what they require in taxi and PHV licensing and what the benefits and costs are to passengers and the trade.”

Finally, the DfT observed that:

“Continuing to require something because that is what has long been the case is not sufficient justification. Excessive and unnecessary regulation has a cost, it denies passenger’s choice, increases the fares they must pay, which may in turn be detrimental to safety if passengers turn to unlicensed vehicles.”

It is abundantly clear from this that the future focus for transport regulation, including taxis and PHVs will strongly focus on the service user experience (passengers) and less on the provider and mode (i.e. taxi/PH licence holders).