ALL THINGS LICENSING
Key questions the consultation poses The consultation has a number of question themes:
l Governance and accountability: how should LTAs be held to account for licensing performance and safety outcomes across large areas?
l Transition and resourcing: what’s the best way to transfer staff, systems, and casework from districts to LTAs without disrupting services or disadvantaging applicants?
l Consistency vs local flexibility: how far should standards be harmonised, and where should local discretion remain (e.g. vehicle age policies, local conditions)?
l Enforcement powers and collaboration: what joint- working arrangements and powers are needed to tackle non compliance and cross-border issues effectively?
What should you do now?
The DfT is seeking views from all stakeholders. Obviously the trade and local authorities will have different approaches in their response. However, there does appear to be an increasing desire from all parties for more consistency.
Licence holders may wish to assess how harmonised standards might impact operating models, cross- border work, and investment decisions (e.g. fleet specifications and accessibility features); prepare constructive feedback on where consistency helps and where local flexibility is vital.
Licensing authorities will need to review current capacity, enforcement arrangements, and digital systems; map how functions could scale to an LTA footprint; and prepare evidence on costs, benefits and transition risks to include in their response.
Timeline and how to respond
The consultation opened on 8 January 2026 and closes at 11:59pm on 1 April 2026. Details on how to respond are on the consultation pages at:
https://shorturl.at/R13kK
In addition to the consultation regarding moving licensing responsibility to LTAs, the English Devolution Bill continues to attract interest, particularly with regard to proposals around national standards and potentially legislating to reduce concerns around out- of-area working.
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Reforming taxi and PHV licensing: what the English Devolution Bill changes mean for councils and the licensed trade
Potentially significant changes to taxi and PHV licensing are moving through Parliament as part of the English Devolution and Community Empower- ment (EDCE) Bill. These reforms seek to address a long-standing national problem: the rise in out-of-area licensing, where drivers are licensed in one authority but operate predominantly in another.
For both local authorities and the licensed trade, these proposals represent the most substantial shift in licensing policy in over a generation.
Why change is being proposed
Concerns around safety, safeguarding, and inconsis- tent licensing standards have been gathering pace nationally. A key driver has been Baroness Casey’s national audit into group based CSE, which high- lighted weaknesses in the current taxi/PHV licensing framework, particularly around vetting and oversight.
The government responded by committing to
strengthen licensing laws through the EDCE Bill. At its core is the reduction in variation between authorities to prevent individuals exploiting regulatory differences by licensing in areas with minimal requirements.
The problem: out of area licensing
Out-of-area working has become central to the national debate. In some regions, most PHV drivers are licensed elsewhere, limiting councils’ ability to enforce standards and protect passengers.
• Greater Manchester, for example, reports that 49% of PHV drivers operating locally are licensed by Wolverhampton City Council, far outside the region. Local leaders, including GM Mayor Andy Burnham, describe this system as “broken”, warning that councils cannot regulate drivers they don’t license, making safeguarding and enforcement significantly harder.
• Indeed, DfT statistics for last year show that over 11% of all PHVs in England are now licensed by Wolver- hampton, up from less than 0.5% a decade ago.
What the EDCE Bill proposes 1. National minimum licensing standards
The most significant amendment is the introduction of national minimum standards for taxi and PHV driver and operator licensing.
FEBRUARY 2026 PHTM
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