Posted on the 15th September 2026 in PHTM News

GREATER MANCHESTER LAUNCHES £2M FUND TO HELP PRIVATE HIRE DRIVERS UPGRADE VEHICLES

A new £2m fund has officially opened for Greater Manchester private hire drivers to upgrade their vehicles, transport bosses confirmed on Tuesday 15 September 2026.

The scheme provides practical financial support to help local drivers transition to cleaner cars, while leaders simultaneously press the Government for legislative change on out-of-area licensing.

Open for applications from 15 September, the Private Hire Vehicle Support Fund offers grants of up to £2,500 to private hire drivers licensed by one of the region's ten local councils. The scheme helps drivers with older vehicles upgrade to Euro 4 or higher for petrol cars, Euro 6 for diesel cars, or zero-emission capable vehicles.

Transport data shows that taxis and private hire vehicles make an estimated 120,000 journeys in Greater Manchester every day, adding up to roughly 44 million trips annually.

Alongside the funding rollout, city region leaders continue to call on the Government to change the law regarding out-of-area licensing. It is estimated that more than 50 per cent of private hire vehicles working in Greater Manchester are licensed elsewhere, giving local authorities limited oversight, fewer enforcement powers, and no direct control over those drivers.

Civic and transport leaders want a "licence where you operate" model, and the Government has confirmed it will bring forward a Draft Taxi and Private Hire Vehicle Bill for pre-legislative scrutiny.

Mayor of Greater Manchester Bev Craig said: "We've listened to the trade and we're launching this fund to offer private hire drivers practical financial support to help them move to cleaner, more modern vehicles, which is good for them, passengers and good for our environment.

"I'll continue the work with the Government to secure stronger legislation that better supports our locally licensed drivers. They should not be undercut by drivers licensed elsewhere, where we can't guarantee a safe, high-quality service."

Unions have widely welcomed the initiative. Kevin Flanagan, GMB Manchester Central Branch Secretary, stated: "Drivers have faced significant challenges and costs in upgrading their vehicles in recent years, these grants will provide welcome assistance to those still making the transition to newer vehicles."

Andy Wells, Regional Officer for Unite the union, added that the move would "only lead to an improvement in services for the customer".

The new initiative complements Greater Manchester's existing Hackney Support Fund, which launched in December 2025 to help licensed black cab drivers upgrade to cleaner vehicles, with funding already committed to more than 400 locally licensed black cab drivers.

John Potts, a Stockport-licensed hackney cab driver who recently switched to an electric vehicle, noted: "The biggest challenge for many drivers is the upfront cost of changing vehicles. Financial support like this made such a big difference to me and the whole process was really straightforward."

Locally licensed private hire drivers can find out more and apply online at www.greatermanchester-ca.gov.uk/phv-support-fund


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