MODERNISING PH LICENSING
Article by Wesley Bishop Chief Customer Officer Addison Lee
www.addisonlee.com
Addison Lee has long advocated for a robust licensing framework - one that genuinely reflects the needs of those it serves and places public safety at its core.
The government’s decision last year to introduce national minimum standards for the private hire industry was a significant and welcome step toward closing a critical regulatory gap. Passengers rightly expect a consistently high standard of service wherever they travel, and this move marked an important milestone in building that assurance across the sector.
But the reforms don’t have to stop there. There are ways to maintain the flexibility our industry needs while curbing excessive out-of-area working.
Modifying enforcement powers
The government recently tabled an amendment to the English Devolution Bill which would give licensing authorities the power to temporarily suspend a licence, regardless of which authority originally issued it.
Currently, enforcement officers do not have the power to stop a vehicle for basic checks, such as confirming the driver’s licence and ensuring that they are in a roadworthy vehicle. This presents a clear issue in terms of passenger safety.
As such, the proposed update is a vital modification to the current framework that marks a meaningful step forward in strengthening enforcement and protecting public safety. It is a position Addison Lee has championed for some time, and we have been working closely with the DfT to help make it a reality.
Maintaining flexibility and a level playing field
While the government’s announcements so far establish a solid baseline for regulating out-of-area working, stronger and more targeted measures are needed to tackle licence shopping and protect local accountability.
A percentage-based system for out-of-area bookings would give operators the flexibility they need, while drawing a clear line against excessive licence shopping. It would preserve local accountability and ensure authorities retain genuine oversight of
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services within their communities. As a practical starting point, operators could be restricted to fulfilling no more than 20% of bookings entirely outside their licensed area.
Operational realities also argue for a degree of local flexibility. An operator based near a border with another authority will naturally handle a higher volume of cross-border work, while proximity to airports, stations or major venues just outside a licensed area will similarly generate regular demand from customers travelling to and from those locations.
There will also be occasions where other forms of public transport fail, adding another layer of complexity. Train breakdowns or flight diversions require vehicles from across a region to mobilise rapidly to meet demand, with journeys potentially terminating anywhere in the country.
The most compelling case for a percentage-based system is its measurability. Operators are already required to record booking details, including pick-up and drop-off addresses. A straightforward requirement to submit that data – whether it is weekly, monthly or quarterly, would provide authorities with a clear and auditable picture on out-of-area activity.
Making the NR3 database mandatory
Making participation in the NR3 database mandatory across all authorities would be another straightforward step towards a safer, more coherent licensing system. Its current weakness is well documented: where authorities neither check nor contribute to the database, gaps emerge that drivers with a refused or revoked licence elsewhere can exploit simply by applying to another authority.
Mandatory participation would close that loophole permanently, ensuring that every licensing decision is made with full visibility of an applicant’s history, regardless of where in the country they apply.
Modernising the licensing framework
The case for reform is clear. A modern licensing framework should be measurable, enforceable and fair – for passengers, drivers and operators. The steps outlined here are neither radical nor burdensome; they are the logical extension of progress already underway.
Addison Lee will continue to work closely with government to ensure that the regulatory landscape keeps pace with the industry it governs, and that public safety remains its foundation.
APRIL 2026 PHTM
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