Government Reviews Taxi Cross-Border Hiring Amid Industry Debate

The UK government is currently reviewing taxi and private hire vehicle (PHV) regulations amid ongoing concerns regarding cross-border hiring. This issue, where vehicles are allowed to operate beyond their licensed areas if bookings are pre-arranged, has sparked debate within the industry.

In a recent parliamentary exchange, Mary Foy, Labour MP for City of Durham, inquired about potential reforms to the regulations. The Department for Transport (DfT) confirmed that the current framework permits both taxis and PHVs to operate outside their licensing zones, as long as jobs are pre-booked. However, taxis are restricted from picking up passengers at ranks or being hailed on the street outside their licensed areas.

Transport Minister Simon Lightwood addressed these concerns, stating that the flexibility of the current regulations aims to better meet customer demand. However, he acknowledged that the government is aware of the industry's concerns regarding out-of-area working. He added that the DfT is actively considering regulatory changes but did not provide a timeline for any proposed reforms.

In February 2024, Andy Burnham, Mayor of Greater Manchester, called for a ban on out-of-area taxi operations, pledging that a Labour government would tackle the issue. This has further fueled the ongoing discussion about the need for regulatory updates.

Simon Lightwood stated:

"The Government recognises concerns around out-of-area working and is considering options to strengthen the regulation of the sector."