The UK government’s Devolution White Paper could significantly change the taxi and private hire vehicle sector. These proposals aim to empower local authorities and Mayoral Strategic Authorities to regulate the industry more effectively, tackling issues like cross-border working and inconsistent standards.
Why Change is Needed
Taxi and private hire vehicles play an essential role in transport, particularly for vulnerable groups and those in areas underserved by public transport. However, concerns about out-of-area licensing and inconsistent enforcement have plagued the industry. Local authorities often struggle to address these issues due to fragmented licensing systems.
Devolution and Licensing Reforms
Under the proposed reforms, Local Transport Authorities (LTAs) would take over taxi and private hire vehicle licensing. This shift aims to:
- Create consistent standards across larger regions.
- Enhance enforcement powers to tackle cross-border working.
- Improve the efficiency of licensing by consolidating processes.
For example, multinational operators like Uber and Bolt might face tighter scrutiny and higher licensing costs as fees standardise across broader areas. Smaller operators, while benefiting from a level playing field, might struggle to meet new requirements, such as vehicle upgrades or emissions compliance.
TaxiPoint Insight: Larger licensing zones could limit big operators’ flexibility to license vehicles strategically. However, it could also simplify compliance and foster regional branding opportunities.
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Challenges for Small Operators
Smaller operators often rely on local knowledge and reputation. The reforms’ emphasis on regional licensing may dilute these advantages, making competing with larger, app-based firms harder. Financial pressures could mount as standardised fees and stricter regulations take effect.
However, the changes also present opportunities:
- Local operators can collaborate to share resources and adopt shared technologies, such as booking apps.
- Standardisation could eliminate loopholes that larger competitors exploit, giving smaller firms a fairer chance.
TaxiPoint Insight: Small operators could benefit from initiatives like Cordic’s SuperYes job-sharing scheme, which helps them compete with ride-hailing giants.
Enhancing Passenger Experience
Passengers stand to benefit from these reforms in several ways:
- Standardised licensing could improve safety and quality.
- Local authorities would have more control to tackle issues like badly parked hire bikes or poorly maintained vehicles.
- Integrated Local Transport Plans could improve connectivity between taxis, buses, and rail networks.
TaxiPoint Insight: The government’s focus on decarbonisation and multi-modal ticketing systems aligns with passenger demands for greener and more convenient transport options.
Mayoral Strategic Authorities’ Role
Mayoral Strategic Authorities will play a critical role in shaping the future of transport. They’ll be responsible for:
- Coordinating local and strategic road networks.
- Setting up Key Route Networks to manage critical roads.
- Developing comprehensive Local Transport Plans that integrate all transport modes, including taxis and private hire vehicles.
For Mayoral Authorities, the power to regulate Lane Rental schemes and enforce pavement parking rules offers new tools to manage traffic and improve urban accessibility.
What Does The Government’s Devolution White Paper Actually say about Taxi and Private Hire Vehicles?
The white paper only actually mentions the word taxi five times in the two paragraphs provided below. Although, there is little specific detail it does speak of wide ranging ambitions for the sector. This has resulted in much speculation regarding how the resulting consultation will play out.
“Taxis and private hire vehicles are an important part of our transport networks and some of the most vulnerable groups in our society rely on them. We recognise there are concerns about out-of-area working by private hire vehicles and are exploring how best to address these concerns. As part of this, we will consult on whether to make all Local Transport Authorities (including Strategic Authorities) responsible for taxi and private hire vehicle licensing.
Administering taxi and private hire vehicle licensing across this larger footprint would increase the consistency of standards and enable more effective use of enforcement powers across a whole functional economic area. Greater economies of scale should also enable authorities to improve the efficiency of licensing, reducing the incentives for people to license out of their usual working area. This would be a significant change for the sector, and we will work with stakeholders to understand possible impacts before taking a final decision. In London, taxi and private hire vehicle licensing is already the responsibility of the Mayor and Transport for London.”
Looking Ahead
The government’s commitment to devolution and transport reform is clear. By giving more power to local authorities, these changes could address long-standing issues in the taxi and private hire sector. However, their success will depend on careful implementation and collaboration between authorities, operators, and stakeholders.
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