Glasgow Business Leaders Push for Lifting Taxi Vehicle Cap

A growing disagreement is unfolding between business leaders and the Scottish Private Hire Association (SPHA) over Glasgow's cap on taxi and private hire vehicle numbers. Business leaders argue that the policy is holding back the city's economic recovery, particularly the night-time economy, while the SPHA claims that lifting the cap would harm drivers' earnings and safety.

Calls to Lift the Vehicle Cap

Business leaders, including the Glasgow Chamber of Commerce, are urging the city to lift the cap on private hire vehicles to support the night-time economy. Stuart Patrick, CEO of the Glasgow Chamber of Commerce, argues that the current limit restricts the number of taxis available in the city centre, particularly at peak times. He believes that increasing the number of vehicles would help make it easier for people to travel home at night, which would support businesses and help revitalize the city centre post-pandemic.

Uber, which supports removing the cap, also stresses that scrapping the limit would offer more opportunities for drivers and improve transport options for passengers. The company adds that drivers would benefit from worker rights like holiday pay, pensions, and union representation if the cap were lifted.

Concerns About Market Oversaturation

In contrast, the SPHA strongly opposes lifting the cap. Eddie Grice, the general secretary of the SPHA, warns that doing so could flood the market with large firms like Uber, driving down earnings for drivers. He argues that an oversaturated market would force drivers to work longer hours to make a living, which could raise safety concerns. Grice emphasizes that the current issue is not a shortage of vehicles, but a shortage of drivers willing to work during peak times, particularly weekends.

The SPHA believes that removing the cap would result in more drivers working longer hours for less money, potentially compromising public safety and service quality.

Licensing Committee Reviews Policy

Glasgow’s licensing committee, which regulates the cap, recently rejected over 680 applications for private hire vehicle licenses between May and the end of 2024 due to the cap being reached. However, the committee has decided to hold a consultation on the policy. Alex Wilson, the chair of the licensing committee, has expressed reluctance to remove the cap but has said that any decision will depend on the findings of the consultation.

Wilson believes the primary issue is not the number of vehicles, but the availability of drivers. Feedback suggests there are enough cars, but many drivers do not work at peak times. He calls for firms to incentivize drivers to work during busy hours to improve availability.

2023 Review Highlights Demand

In 2023, the committee reviewed the cap policy and decided to add 255 more private hire car licenses to address demand during peak times. The review found that while there was unmet demand for taxis, particularly during busy hours, the main issue was a lack of available drivers, rather than a shortage of vehicles. The review concluded that adding more licenses could help attract more drivers to the industry, but challenges remain in recruiting and retaining enough drivers to meet demand.

Post-COVID Challenges in the City Centre

Research commissioned by Glasgow City Council highlights the ongoing challenges facing the city’s night-time economy. The study, conducted by Progressive Partnership and Glasgow Caledonian University’s Moffat Centre, found that the availability of taxis and private hire cars continues to be a deterrent to people visiting the city centre in the evening.

The research shows that the post-COVID recovery in the night-time economy has been slow, and the lack of late-night transport options is a significant issue. This challenge is seen as a barrier to revitalizing the city centre and supporting local businesses.

The Debate Continues

The debate over Glasgow’s taxi and private hire vehicle cap remains unresolved. While business leaders and Uber advocate for lifting the cap to stimulate the night-time economy and provide more transport options, the SPHA argues that it would negatively impact driver earnings and safety. As the licensing committee prepares to consult on the issue, the outcome will determine how Glasgow's transport network evolves in the coming years.