A new inquiry by the Transport Committee will investigate how standards for taxis and private hire vehicles (PHVs) could be improved, amid concern about inadequate regulation that varies from one area of the country to another. 

The Transport Committee is a cross-party group of backbench (non-Government) MPs appointed by the entire House of Commons to carry out inquiries into the Department for Transport’s policies, scrutinise its decisions and hold it to account.

The full terms of reference for this inquiry are included below.

Local authorities with the power to issue licences (licensing authorities) – such as Transport for London, city councils, county councils or combined authorities – have some freedom to set their own local standards for safety, driver conduct and accessibility, within a statutory framework.

Despite licensing authorities needing to have regard to statutory standards, local variations have arisen across different authorities.

Additionally, ‘cross-border licensing’ has given rise to the case of Wolverhampton City Council, where 96% of its taxi and PHV licences have been awarded to drivers from outside of the city.

The Greater Manchester Combined Authority is among those calling for a change in the law, after a Freedom of Information Act disclosure showed that 9,000 drivers registered with Wolverhampton City Council reside in the Greater Manchester area.

The cross-party Committee will also examine how standards across the sector could be improved and made more consistent across the country with regards to accessibility, safety and safeguarding of passengers.

The inquiry will look at how best practice could be replicated, the effectiveness of enforcement and inspection regimes, and how standards vary – and could be standardised – between taxis, PHVs and ride-hailing services such as Uber and Bolt.

MPs will also look to the future at how the sector and its regulatory system might need to evolve to enable the use of self-driving vehicles.

The inquiry comes after the Committee published its report on accessible transport, which heard evidence of too few wheelchair-accessible PHVs and taxis being in circulation around the country, and even of drivers turning away blind people with assistance dogs.

Transport Committee Chair Ruth Cadbury MP said: “When it comes to the licensing and regulation of taxi and private hire vehicles, a strange patchwork of driver and vehicle standards now exists across every town and city in the country.

“This inconsistency has given rise to a situation that just isn’t good enough for drivers or for the public, who can unknowingly leave themselves vulnerable when getting into the back of a stranger’s car.

“This Committee will investigate whether a more standardised, more rational regulatory and enforcement regime could do away with the phenomenon of one city receiving applications from all over the country. We want to examine how an improved system could give greater confidence to consumers, particularly disabled people, women, children and other vulnerable people. And we need to look at how the system could make it clear who a passenger can complain to if standards aren’t met.”

CALL FOR EVIDENCE:

The Transport Committee now accepts written evidence submissions from those with knowledge of the sector.

Submissions should be made via the Committee’s website: https://committees.parliament.uk/call-for-evidence/3715 by 11.59pm on 8 September 2025.

Do current licensing arrangements and tools enable local authorities to effectively regulate and oversee the taxi and private hire vehicle (PHV) sector across England, in terms of safety, accessibility and quality of service? If not, what improvements could be made?

What is the impact on the travelling public and drivers of variation between licensing authorities? Is reform needed to bring greater standardisation?

What would be the practical implications for licensing authorities and operators of more stringent or standardised licensing conditions in respect of safety, accessibility, vehicles and driver conduct?

What steps should the Government take to address the challenges posed by cross-border licensing in the taxi and PHV sector?

What would effective reform look like in terms of enforcement, passenger safety and safeguarding, and regulatory consistency? Is there a role for regional transport authorities?

How are digital ride-hailing platforms impacting standards in the sector, and is further regulation in this area required?

How effective, accessible, and trusted are complaints and incident reporting systems in the taxi and private hire vehicle (PHV) sector, for both passengers and drivers?

How effective is the National Register of Licence Revocations and Refusals (NR3) in supporting consistent licensing decisions across local authorities? What barriers, if any, are limiting its use or impact?

What are the implications for taxi and PHV licensing of the future rollout of autonomous vehicles?

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