ALL THINGS LICENSING


This is arguably the most significant - and most challenging - recommendation in the report.


National database: a foundation for reform


Alongside standards and out-of-area working, the report notes the Government’s commitment to introducing a national database of licensed taxis and private hire vehicles.


There is a subtle but important distinction here between minimum and absolute standards. Absolute standards would remove local discretion entirely, mandating a single set of requirements nationwide. Minimum standards, by contrast, allow authorities to go further, but not below the baseline.


The Committee stops short of endorsing a fully centralised system but leaves little doubt that, in certain areas, particularly those involving public safety, uniformity is essential.


Out-of-area working: elephant in the room


No issue provoked stronger reaction during the inquiry than out-of-area working. For those outside the sector, the concept can seem counterintuitive: a driver licensed in one district is legally permitted to operate in another, often many miles away. But for those working in licensing and enforcement, this has become one of the defining challenges of modern regulation.


The Committee recognises that: out-of-area working is now widespread and is closely linked to licence shopping, and overall it undermines local accountability and public confidence. The evidence presented was stark. Some stakeholders described out-of-area working as “the root cause to all that’s wrong” in the sector.


Critically, the Committee also links this issue to safeguarding concerns, citing findings from Baroness Casey’s 2025 report into group-based sexual exploitation, which identified licence shopping as a factor undermining effective protections.


Yet, despite the strength of feeling, the Committee stops short of calling for an outright ban. It acknowledges that prohibition would be impractical in a modern, flexible transport market.


Instead, it calls for a “clear plan” to reduce high levels of out-of-area working and to incentivise drivers to license where they primarily operate.


PHTM JULY 2026


While this is not explored in depth within the Committee’s commentary, its importance should not be underestimated. A national database has the potential to:


l Improve information sharing between authorities l Enhance enforcement capability l Support public confidence and transparency


For many years, licensing officers have operated with limited visibility beyond their own districts. A truly functioning national database could change that dynamic fundamentally.


Implications for the public: consistency, safety, and trust


For passengers, the Committee’s report is ultimately about confidence. The current system leaves too much to chance. A passenger taking a journey in one town may be subject to entirely different standards than in another. That is difficult to justify in a sector so closely tied to public safety.


If implemented effectively, the Committee’s recommendations could deliver:


1. Consistent safety standards


High national minimum standards would ensure that core safeguarding measures are non-negotiable, regardless of location.


2. Greater transparency


A national database could allow passengers - and authorities - to verify licensing credentials more easily. 3. Improved accountability


Reducing out-of-area working would make it clearer which authority is responsible for oversight and enforcement.


However, there are risks. Poorly designed minimum standards could fail to address existing weaknesses. And if enforcement is not strengthened alongside reform, public confidence may not improve as intended.


61


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78