Transport Secretary says taxi drivers should be licensed where they operate, as MPs urge ministers to “get tough” on standards

Speaking in the House of Commons on Thursday (11 June), Heidi Alexander said in response to a question from Transport Committee Chair Ruth Cadbury MP: “…[We] have already legislated to establish national standards and to reform the way that enforcement action can be taken against private hire drivers and vehicles, no matter where they are licensed. Those standards will provide a robust framework to make sure that people are safe wherever they live, work or travel. 

"I believe that drivers and operators should be licensed where they intend to provide services."

Alexander continued: “We are bringing forward a draft taxi and private hire vehicle Bill for pre-legislative scrutiny in this Session, and I would be grateful for the expertise of my hon. Friend’s Committee in looking at that.

“We want to look at the issue of out-of-area working holistically to make sure that we do not reduce the availability of private hire services for everyone, while also making sure that we have very high standards in place.”

Earlier this month the Transport Committee published a report on its inquiry into taxis and private hire licensing, calling for a “clear plan” to reduce high levels of out-of-area working. It also highlighted concerns about “inconsistent taxi standards up and down the country”.

Currently there are more than 260 licensing authorities in England.

The Government announced in November 2025 that it would legislate to introduce national minimum standards for taxis and private hire vehicles.

The Transport Committee noted: “Minimum standards would establish a floor for the conditions set by every licensing authority, while preserving the ability of individual authorities to vary conditions by setting higher requirements where local circumstances warranted it.

“Absolute national standards, by contrast, would impose a single set of conditions to be applied consistently by every authority, with no scope to add to or depart from them.”

During its inquiry, the Committee heard arguments for both minimum standards and absolute national standards.

The Committee said it also heard “fierce opposition” to routine out-of-area working, which sees drivers obtaining their licence in one area and operating mainly in another.

The Committee noted: “A key concern is that this practice reduces standards by enabling 'licence shopping' - whereby drivers and operators deliberately obtain licences from an authority with less stringent requirements than the one in whose area they primarily operate. This was highlighted by the 2025 report into group-based sexual exploitation by Baroness Louise Casey, which warned that licence shopping was undermining safeguarding efforts.”

In light of its findings, the Committee urged the Department for Transport to bring forward a “clear plan” to curtail the extensive practice of out-of-area working, and create greater incentives for drivers to license in the locality in which they operate.

Ruth Cadbury said: “Throughout our inquiry, the Transport Committee heard concerns about inconsistent taxi standards up and down the country. We also encountered deep-seated opposition to routine out-of-area working that many believe reduces standards by enabling licence shopping.

“The Committee welcomes the Government’s determination to turn this around with minimum standards, but we are clear that these standards should be high, comprehensive and consistent, with safety as absolute – both for drivers and passengers."

She added: “Ministers should also build on the foundations they have laid with a blueprint for bringing down high levels of out-of-area working that has undermined public confidence in the sector and made enforcement harder.

“By taking tough action now, we can ensure license shopping is disincentivised, taxis are safer and passengers get the same high standards wherever they are in the country.”

Lottie Winson