TRANSPORT COMMITTEE REPORT
the Task and Finish Group, which provided valuable recommendations to
strengthen safeguarding,
improve consistency, and support more effective enforcement within the existing framework.
The Task and Finish Group and the Law Commission reached different conclusions on several key issues. In particular, the Law Commission proposed a more flexible national framework,
including consistent
standards for PHVs and fewer restrictions on where journeys may take place. By contrast, the Task and Finish Group recommended tighter controls on out-of- area working, including requiring that journeys start or end within the licensing area, and proposed that licensing authorities should, where justified, have powers to limit the number of taxis and PHVs.
The Government will draw on both the Law Commission’s draft Bill and the work of the Task and Finish Group in developing its reforms, while updating and adapting their proposals to reflect the current market.
Recommendation 2
We urge the department to bring forward a clear plan to curtail the extensive practice of out-of-area working (OOAW) and create greater incentives for drivers to license in the locality in which they operate. This will enable local licensing authorities to take enforcement action more readily, keep both drivers and passengers safe, and restore trust that has been lost across the sector.
Government Response
As stated in the Committee’s report, the ways people travel are not restricted to administrative boundaries. The Government recognises that taxis and PHVs play a vital role in connecting people to employment, education, healthcare and leisure opportunities, particularly in more rural areas.
The Government shares the Committee’s concern regarding the extent of out-of-area working [OOAW] by taxis and PHVs and the challenges it presents. As the Committee notes, OOAW has raised issues regarding the consistency
effectiveness of enforcement, and the alignment of enforcement resources with areas of demand.
We agree that the current system has created a patchwork of licensing standards across the country, creating an incentive for some drivers and operators to license in areas with lower requirements, quicker
PHTM NOVEMBER 2026
processing times, or lower licensing fees. The Government has already taken action to address this through proposals to introduce national standards and consulting on moving the licensing level to local transport authorities. These could reduce the incentive for license shopping and reduce inconsistencies in standards.
The Committee is right to highlight the enforcement challenges associated with OOAW.
Currently,
enforcement powers rest with the licensing authority that issued the licence, which can limit the ability of other authorities to take action against drivers who operate outside the area where they are licensed. The Government has already taken steps, through the English Devolution and Community Empowerment Act, to address this. New powers adopted in the Act will enable local authorities to immediately suspend licenses in the interests of public safety, regardless of where a driver is licensed. To support licensing authorities in using this new power, the Government will provide guidance on its use to ensure it is exercised consistently and where justified by the circumstances of the case.
of standards, the
Any reforms introduced by the Government will be guided by the need to ensure passenger safety, particularly for women and girls, whilst ensuring that communities continue to have access to a reliable and accessible taxi and PHV service. The Government recognises that there is a relationship between restrictions on cross-border working, service availability , and passenger safety. Any measures that significantly restrict journeys across licensing boundaries could reduce vehicle availability in some areas, increase waiting times, and make it harder for passengers to access transport when and where they need it. In its evidence to the Committee, the Suzy Lamplugh Trust emphasised the importance of ensuring reforms support passenger safety and highlighted the need for a regulatory framework that protects the public while maintaining effective provision. The Government agrees and will therefore carefully consider any proposals that could limit cross-border working, ensuring reforms strengthen safety, safeguarding and regulatory oversight while not negatively impacting supply.
We will continue to work with the Committee, licensing authorities, industry representatives, unions and passenger groups to develop these options further.
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