Andy Burnham, unions and representatives from the taxi trade are calling on Members of Parliament to back an amendment to stop ‘out of area’ licensing through the government’s Devolution Bill.
Following a constructive roundtable with the taxi trade on Friday, there was consensus that an amendment to the English Devolution and Community Empowerment Bill – currently going through parliament – is needed to tackle ‘a broken taxi system’, where one local authority dominates licensing nationally, undermining local enforcement and accountability.
Greater Manchester’s leaders hope an amendment to the Bill could expedite the way forward, with Elsie Blundell – MP for Heywood and Middleton North – tabling a new clause for an optional “licence where you operate” model – during the Bill’s ‘Report Stage’ next week. This would give Mayoral Strategic Authorities power to require that journeys that start and end within their strategic authority area are fulfilled by locally licensed operators.
The government recognises the need for legislative change, with the English Devolution White Paper (December 2024) committing to consulting on whether ‘Strategic Authorities’ – such as Mayoral Combined Authorities – should assume responsibility for taxi licensing.
A proposal for National Minimum Licensing Standards has also been tabled by the government to be included in the Bill, but it won’t tackle out of area licensing.
Mayor of Greater Manchester, Andy Burnham said:
“Taxis are vital to our transport system and local economy. We want them to be amongst the safest and most trusted in the country. But we can’t do this with the current broken licensing system.
“Almost half of Greater Manchester’s private hire drivers are licensed elsewhere and that’s simply not right. The report is very clear about the benefits of changes at a national level, and the barriers drivers face when getting their licence locally.
“We have listened to what drivers, and the industry has told us, and we are determined to lead the way on licensing reform, ensuring high standards, public safety, and fair competition for our drivers. That is why we, along with the trade, are calling on Members of Parliament to back the amendment to close this legal loophole.”
