Posted on the 15th May 2026 in PHTM News

GOVERNMENT UNVEILS MAJOR REFORM TO TAXI INDUSTRY IN KING'S SPEECH

The British government has announced a massive shake-up of taxi laws to fix a broken system that dates back to the era of horse-drawn carriages.

Outlined in the King’s Speech, the new Taxi and Private Hire Vehicle Bill marks the most significant change to the industry in over a century, ensuring passengers receive consistent, reliable services wherever they travel in England. 

It also aims to stop drivers from licensing their cars in one city while working hundreds of miles away in another.

Wolverhampton has been nicknamed the "taxi capital" of the UK after recent figures show the city licensed nearly 34,000 private hire vehicles in 2025, a huge jump from about 10,000 in 2020. Remarkably, up to 96% of these drivers do not actually live in Wolverhampton.

Other local councils have complained that this "out-of-area" working makes it impossible to enforce safety rules, as they have no power over drivers licensed by a different authority.

The government warned that "enforcement activity and resources remain misaligned," which has damaged public trust and created a "patchwork" of different safety standards across the country.

The new Bill aims to create a single, consistent framework for all of England. Key changes include the creation of a mandatory national database of every licensed vehicle and driver, ensuring that authorities can share information instantly to protect passengers.

Regulators will also receive much stronger powers to take "swift and effective action" against drivers who break the law or fail to meet safety standards.

Public safety is at the heart of the reform, following major reviews into child exploitation and passenger security. The government stated the new laws will fix a "fragmented system that has not always protected passengers as it should."

The plans also focus on making travel easier for disabled passengers, who rely on taxis significantly more than the general population.

The City of Wolverhampton Council said it "wholeheartedly" supports the changes. A spokesperson explained that they have been calling for "uniform standards, uniform fees and improved cross-border enforcement powers" for years.

The council also clarified that they do not profit from the high number of licences, as the fees are legally required to be spent only on licensing services.

James Button, President of the Institute of Licensing, welcomed the move, calling the reform "long overdue."

He said the industry needs a modern system that fits the 21st century and keeps taxis a vital part of the public transport network. While the new rules will apply across England, the government confirmed that Wales will not be covered by this specific Bill.


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