New proposals set out to reduce 'out-of-area' working for taxis and boost passenger safety

Women and girls will be better protected under government plans to reduce ‘out-of-area’ working by taxi and private hire vehicle (PHV) drivers.  

Currently, 263 different bodies issue licences to drivers, including councils and Transport for London (TfL). But under the proposals set out in a new consultation launched by the Department for Transport (DfT) today (8 January 2026), this would be reduced to 70 local transport authorities (LTAs), which already manage local transport planning.

This change would simplify the licensing system, improve enforcement and tackle ‘out-of-area’ working, which happens when drivers licensed in one area operate mainly in another, creating safety risks and unfair competition.

By reducing the number of licensing authorities, the number of boundaries between areas is reduced and licensees would have fewer opportunities to seek out less stringent licensing rules. For example, currently in Greater Manchester, there are 10 licensing authorities. However, under the proposals, this would be reduced to just one licensing authority.

These proposals form part of the government’s response to Baroness Casey’s National Audit on Group-Based Child Sexual Exploitation and Abuse, which highlighted the issue of ‘out-of-area’ working and recommended more rigorous statutory standards for local authority licensing and regulation of taxi drivers.  

Local Transport Minister, Lilian Greenwood, said: 

Passenger safety is at the heart of everything we do. These proposals, combined with the introduction of national minimum standards, are important next steps to making taxis and private hire vehicles as safe as possible.

By moving licensing to all local transport authorities, we’re encouraging greater consistency and stronger enforcement across the country.

A spokesperson for the Licensed Private Hire Car Association said: 

We are delighted that the government is consulting on making all local transport authorities responsible for taxi and private hire vehicle licensing.

Reducing the number of licensing authorities should enable licensing efficiencies and consistency of standards nationally for taxis and private hire vehicles, which in turn will improve safety for the travelling public.

This public consultation will run for 12 weeks and is available on GOV.UK.   

This consultation follows proposed new standards on taxi licensing to strengthen safety and protections for passengers in taxis and private hire vehicles.

Under the new rules, the Transport Secretary would have the power to introduce national minimum standards for taxi and PHV licensing.

This would see all drivers subject to robust checks and would mean passengers can feel safe in the knowledge that their taxis and PHVs meet strict national standards, no matter where they are in the country.