TRANSPORT COMMITTEE REPORT Recommendation 3
Following the conclusion of its consultation on transferring taxi and PHV licensing to local transport authorities, the department should publish a comparative appraisal of licensing models, including the local transport authority approach and a potential national licensing model. This appraisal should assess which model would best reduce incentives for extensive out- of-area working.
Government Response
The consultation on proposals to transfer taxi and PHV licensing responsibilities to Local Transport Authorities [LTAs] closed on 1st April 2026. The Government intends to publish its full response to the consultation by the end of the year.
Taxi and PHV licensing in England is currently undertaken at a highly localised level. Responsibility rests, with the exception of London, with individual district, borough, or unitary authorities. These licensing authorities are responsible for setting requirements for drivers, vehicles, and operators within their areas, as well as undertaking compliance and enforcement activity.
As part of its response to the consultation, the Government will consider different licensing models, including LTA-based approaches and potential alternative arrangements, such as a more nationally consistent framework. This will include a comparative assessment of how different models could support more consistent standards, improve the alignment between licensing and enforcement, and reduce incentives for extensive out-of-area working.
Recommendation 4
The government’s plan for national minimum standards must not mean low by default. The areas in which variation in standards is permitted should be minimised in order to disincentivise licence shopping and set at a high level wherever possible to ensure consistently high-quality passenger experience.
Government Response
The Government notes the Committee’s recommendation. The English Devolution and Community Empowerment Act received Royal Assent on 29th April 2026 and provides the Secretary of State with powers to introduce national standards for taxi and PHVs.
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National standards must be sufficiently robust to improve consistency and maintain high levels of passenger safety and service quality. We recognise the Committee’s concern that standards set too low, or with excessive scope for local variation, could perpetuate the incentives for license shopping and undermine confidence in the regulatory framework.
The Government is committed to developing national standards that are clear, enforceable, and set at an appropriately high level. These standards will seek to reduce unnecessary variation between licensing authorities, particularly in relation to safety, driver training, and accessibility. They will also aim to ensure passengers can have confidence in receiving a consistently safe and high-quality service, regardless of where they travel or where a driver, vehicle or operator is licensed.
There could be a role for local flexibility in certain areas, allowing licensing authorities to respond to specific local circumstances and policy priorities. In developing the standards, careful consideration will therefore be given to where a consistent national approach is essential, and where limited variation may be justified to reflect local needs.
However, the Government is clear that any element of local flexibility will not come at the expense of public safety, and the core
requirements will be set nationally to
safety and safeguarding ensure
consistently high standards across England.. Where local varaiton is required we will consider how this could interact with any wider reforms, including any potential measures to incentivise or require drivers to be licenced in the area in which they undertake the majority of their work.
The Government will engage closely with local authorities, industry representatives, trade unions, and passenger groups as part of this process.
Recommendation 5 We
also recommend that requirements for
safeguarding training and clear requirements for frequency of rechecking DBS certificates be included in national standards so that they are applied uniformly across every licensing authority. The department should also review the impact that legislative changes have had on DBS filtering and work with relevant partners to ensure these do not create unintended gaps in the information available to licensing authorities.
NOVEMBER 2026 PHTM
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