ALL THINGS LICENSING
Article by Mike Smith, Senior Specialist for Licensing and Community Safety at Guildford Borough Council and Vice-Chair of the Institute of Licensing South East Region.
Please note that this article represents my own views which are not presented as the views of the Institute of Licensing or Guildford BC.
What a year 2025 was!
Firstly, a Happy New Year to members of the trade. It may seem strange starting the new year looking back at the old, however 2025 probably saw the start of perhaps the most significant potential changes to the licensed trade for many years.
Beginning with the announcement of local government reorganisation, promising the biggest change to local government in 50 years seeking to reduce the number of licensing authorities regulating the trade, with the intention of reducing variation across the current 260+ authorities which currently deliver taxi and private hire licensing functions.
2025 also saw the definitive ruling from the Supreme Court allowing operators to contract with passengers and drivers as they wish outside of London, with the later announcement in November’s budget about the addition of 20% VAT on private hire fares taking effect from this month.
Across the industry continuing issues such as driver shortages, increased automotive costs, costs of living squeezing customer habits and evolving innovations to technology influenced trends.
However perhaps the most significant developments were the publication of the Casey report in June, which was damning in its assessment of previous failings around safeguarding with recommendations to close the gap caused by ‘out of area working’. Following the report, we have had the Parliamentary call for evidence and inquiry, with the proposal of national minimum standards drafted into legislation which is making its way through parliament.
In December, last month, the English Devolution and Community Empowerment Bill cleared its second reading in the House of Lords, triggering an extensive debate over the Bill’s proposed licensing reforms, particularly those concerning taxi and private hire vehicle regulation.
60 The Bill, intended to strengthen local governance
expand devolution and across England,
introduces new powers enabling the Secretary of State to establish national minimum standards for taxi and private hire licensing. During the 8 December debate, peers examined these provisions closely, reflecting long-standing concerns from local authorities about inconsistent regulatory standards and enforcement challenges.
The Government, represented by Baroness Taylor of Stevenage, positioned the reforms as a means to address fragmentation across the country. She argued that national minimum standards covering driver vetting, safety compliance, vehicle specifications and operator conduct would help ensure consistent protection for passengers irrespective of where they travel in England. Addressing the issue of “out-of-area working” - where drivers operate primarily outside the authority that licensed them - she noted that the current patchwork of rules has reduced accountability and complicated safeguarding.
Several peers, however, argued that uniform national standards must be complemented by stronger local enforcement capabilities. Labour’s
Lord Bradley
highlighted ongoing concerns raised by metro mayors, including those in Greater Manchester, who cite loopholes that permit companies to be licensed in areas with less stringent requirements while conducting most of their operations elsewhere. He pressed the Government to consider further statutory measures that would require operators and drivers to be licensed where they actually work.
Other contributions focused on safeguarding, referencing recent findings by Baroness Casey on child sexual exploitation. Speakers noted that effective enforcement requires local authorities to have clear jurisdiction and adequate resources to monitor compliance, particularly when passengers rely on taxis in vulnerable circumstances. They emphasised that national standards alone will not resolve these issues unless matched with robust, localised enforcement frameworks.
Beyond taxi and private hire regulation, the Bill also contains wider licensing provisions, including expanded powers for the Mayor of London relating to the hospitality and night-time economy sectors. Supporters argue these powers could drive economic growth, while critics caution against over centralisation and the potential weakening of borough-level autonomy.
JANUARY 2026 PHTM
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