The Transport Committee has warned the Government that its plan for national minimum standards for taxis must not mean “low by default”.

The Committee’s report into the licensing of taxis and private hire vehicles that was published on 9 June, also calls for a “clear plan” to reduce high levels of out-of-area working.

The report comes amid concern about fragmented regulation that varies from one area of the country to another. Currently there are more than 260 licensing authorities in England, each applying its own standards.

The Government announced in November 2025 that it would legislate to introduce national minimum standards for taxis and private hire vehicles, while some in the sector have called for tougher absolute national standards.

Minimum standards would establish a floor for the conditions set by every licensing authority, while preserving the ability of individual authorities to vary conditions by setting higher requirements where local circumstances warranted it.

Absolute national standards, by contrast, would impose a single set of conditions to be applied consistently by every authority, with no scope to add to or depart from them.

During its inquiry, the Committee heard arguments for both minimum standards and absolute national standards.

The Committee also heard fierce opposition to routine out-of-area working, which sees drivers obtaining their licence in one area and operating mainly in another. In its written evidence, the Blackpool Taxi Association referred to out-of-area working as "the root cause to all that's wrong".

A key concern is that this practice reduces standards by enabling 'licence shopping' - whereby drivers and operators deliberately obtain licences from an authority with less stringent requirements than the one in whose area they primarily operate.

This was highlighted by the 2025 report into group-based sexual exploitation by Baroness Louise Casey, which warned that licence shopping was undermining safeguarding efforts.

In the King’s Speech in May 2026, the Government announced its intention to further modernise the current system with measures unveiled including a national database of all licensed taxis and hire vehicles.

CHAIR COMMENT:

Transport Committee Chair Ruth Cadbury said: “Throughout our inquiry, the Transport Committee heard concerns about inconsistent taxi standards up and down the country. We also encountered deep-seated opposition to routine out-of-area working that many believe reduces standards by enabling licence shopping.

“The Committee welcomes the Government’s determination to turn this around with minimum standards, but we are clear that these standards should be high, comprehensive and consistent, with safety as absolute – both for drivers and passengers.

“Ministers should also build on the foundations they have laid with a blueprint for bringing down high levels of out-of-area working that has undermined public confidence in the sector and made enforcement harder.

“By taking tough action now, we can ensure licence shopping is disincentivised, taxis are safer and passengers get the same high standards wherever they are in the country.”

NATIONAL MINIMUM STANDARDS:

The report states: “We welcome the department’s acknowledgement that greater national consistency in licensing standards is required. However, we are not persuaded that the current plan to pursue national minimum standards will be sufficient, unless those standards are strong enough to avoid a lowest common denominator effect, and carefully specified to remove incentives for licence shopping. The department already accepts that in practice there should be an absolute standard in areas like safety.

“The government’s plan for national minimum standards must not mean low by default. The areas in which variation in standards is permitted should be minimised in order to disincentivise licence shopping, and set at a high level wherever possible to ensure consistently high-quality passenger experiences.”

OUT OF AREA WORKING:

The report states: “Out-of-area working is now a widespread feature of the taxi and private hire vehicle market. We recognise the strength of concern about its impact on standards, local accountability and public confidence. We also acknowledge that outright prohibition would be impractical.

“We urge the Department to bring forward a clear plan to curtail the extensive practice of out-of-area working and create greater incentives for drivers to license in the locality in which they operate. This will enable local licensing authorities to take enforcement action more readily, keep both drivers and passengers safe, and restore trust that has been lost across the sector.”

NPHTA COMMENT:

David Lawrie, Director of NPHTA said: "Having been a part of the inquiry, with both multiple written submissions, and an oral submission in October, We have been waiting for this with bated breath.

"It is finally out there - and WOW, what a read. Everything has been covered, 69 pages - there's just so much detail including:

• National standards alone will not be enough

• Standards must also include turnaround time (processing and issuing licences)

• Fees

• Enforcement

• NO support for any 100% WAV policies in rural areas - instead recognising the need for a reasonable proportion

• CCTV

• Ending predominant out-of-area use (cross-border working)

• Extending of NR3S to include vehicles and operators

"I can honestly say, that the vast majority of everything we said on your behalf has been taken on board!"

Click to read: https://committees.parliament.uk/.../docu.../298932/default/

Remember NPHTA, IoL, and many other stakeholders have already begun discussions with the Transport Minister Lilian Greenwood ... this time, FINALLY, it looks like change IS coming!"

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