TRANSPORT COMMITTEE INQUIRY Suggestion / summary:
l The use of taxi and private hire services in child grooming has been recognised in Rotherham, but broader implementation of safeguards has been limited.
l The issue is not primarily one of cross-border working or licensing limitations, but of ensuring appropriate safeguards across all local areas.
l Active engagement, advocacy, and awareness are crucial to
improving safety measures and preventing abuse in all transport sectors. 6. Capping of PHV numbers
We do not believe that introducing a cap on the number of private hire vehicles would be beneficial to the travelling public. On the contrary, evidence suggests that such restrictions would have a detrimental effect not only on passengers but also on the private hire industry as a whole.
In practice, a cap on private hire vehicle numbers would primarily benefit large private hire companies, which would acquire available vehicle licences (“plates”) and then rent them to drivers. This would create
capitalisation and monopoly, forcing
independent drivers to rent rather than own their vehicles. Such concentration of ownership reduces competition, raises costs, and limits flexibility within the industry.
As David Pattison of Wolverhampton Council has rightly observed, there is a real risk that a company based in another area - for example, Manchester - could acquire the majority of a local authority’s available plates. This could leave residents within that authority, such as those in Wolverhampton, without sufficient local service provision, simply due to an imposed cap on vehicle numbers.
Current legal position:
Under existing legislation in England and Wales, local authorities do not have the power to cap the number of private hire vehicles.
l Section 37 of the Town Police Clauses Act 1847, read in conjunction with section 16 of the Transport Act 1985, allows councils to limit the number of hackney carriage (taxi) licences only if they are satisfied that there is no significant unmet demand for such services.
PHTM NOVEMBER 2025
l These provisions do not extend to private hire vehicles.
l Furthermore, neither the Local Government (Miscellaneous Provisions) Act 1976 nor the Local Transport Act 1998 provides authority to restrict PHV numbers.
Accordingly, any attempt to introduce such a cap would require primary legislative change.
Comparative example - Glasgow:
In Glasgow, a cap on PHV numbers exists under Scottish legislation, the impact of this measure has been mixed and remains controversial. Independent drivers in Glasgow are unable to license a new vehicle or replace one that has been damaged or written off because no new vehicle licences are available. This forces drivers to rent vehicles from plate holders, artificially inflating vehicle rental values and restricting independent enterprise.
It is also important to note that under the Scottish licensing framework, a private hire driver may accept their own bookings until they operate three or more vehicles. At that point, they are required to obtain a Booking Office Licence - the Scottish equivalent of a private hire operator licence under the system in England and Wales.
The Scottish experience illustrates the economic and operational drawbacks of capping private hire vehicle numbers.
Suggestion / summary:
Introducing a numerical cap on private hire vehicles would be harmful to both the industry and the travelling public. It would:
l Create monopolies dominated by large operators. l Restrict market access for independent drivers. l Increase vehicle rental costs; and
l Reduce availability and service quality for local residents.
Current law does not permit such restrictions, and where caps do exist - such as in Glasgow - they have led to negative consequences. For these reasons, we strongly oppose any proposal to cap private hire vehicle numbers and urge policymakers to maintain an open, competitive, and fair licensing environment that prioritises public benefit.
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