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Reforming the regulation of taxis and private hire vehicles

Law Commission | Law Commission

4 min read Partner content

Taxis and private hire services, which include minicabs, are an essential link in the transport network of England and Wales, with passengers spending in excess of £2.5 billion a year on fares.

But the law that governs how the taxi and private hire trades operate is old, inconsistent and struggling to deal with internet-driven changes in passenger behaviour.

In a report published today, the Law Commission is recommending reforms that would update the law and make it clearer for those working in the taxi and private hire trades and their passengers.

The Commission’s report recognises the value to passenger choice of the two-tier system of private hire vehicles – which must be pre-booked, and taxis – which can use ranks or ply for immediate hire. It makes recommendations to retain and reinforce the distinction.

Passenger safety is at the forefront of the Commission’s reforms. It is recommending that standards be set nationally for public safety, accessibility and environmental impact. For the first time, passengers of taxis and private hire vehicles could confidently expect consistent levels of safety and quality wherever they travel. Under the reforms:

• all private hire vehicles, including stretch limos and other “novelty” vehicles, would be subject to the same standards, wherever they operate
• taxis would be subject to a comparable set of standards, which could be added to locally, allowing licensing authorities to choose to set higher standards where they want to, and
• local licensing authorities would have the power to inspect and, if necessary suspend, any vehicles working within their areas, wherever they are licensed.

These reforms would not impact on the famous black cabs in London, where standards of safety and accessibility are already high. But pedicabs in the capital will fall within taxi licensing for the first time, allowing Transport for London to set appropriate standards. Cars used for weddings and funerals, however, will continue to be exempt from regulation.

Among the measures designed to improve the accessibility of services for disabled people, the Commission is recommending a national requirement for taxi and private hire drivers to take disability awareness training. And local licensing authorities would be able to impose a duty on taxis to stop when they are hailed, bringing to an end the unacceptable practice of drivers passing by disabled people.

There would be stiffer penalties, too, for touting (actively soliciting customers), which poses a significant safety risk. Under the Commission’s reforms, licensing authorities would be given the power to impound any vehicles used in connection with touting.

Passengers are increasingly turning to the internet to book their taxi and private hire services. In a move to help the private hire trade respond, the Law Commission is recommending that operators should no longer be barred from accepting bookings or using drivers and vehicles from outside their licensing areas.

Licensing authorities should be able to continue to limit taxi numbers, provided they conduct a regular review of the service being provided. Restrictions on the numbers of taxis in some areas have led to inflated “plate values”. To protect the investment of existing drivers, the Commission recommends that the trade in licences should be allowed to continue. But, in areas where quantity restrictions are introduced for the first time, licenses should not be tradeable.

Nicholas Paines QC, the Law Commissioner leading on the project, says:

“The taxi and private hire trades are of enormous value to England and Wales. They provide a living for thousands of operators and drivers, and many more thousands of people depend on them to go about their daily lives.

“The reforms we are recommending will clarify the legal distinction between taxis and private hire services, and retain the valuable qualities of both. They will equip operators, drivers and their vehicles to meet the demands of a modern passenger-service trade, while making passenger safety and accessibility paramount.”

Notes:

We estimate that £2.72 billion was spent by UK households on taxi journeys in 2012 based on ONS estimates of household expenditure on transport services (which covers transport by bus, coach, taxi and hire car with driver) of £7.78 billion for the same period. See http://www.ons.gov.uk/ons/datasets-and-tables/data-selector.html?cdid=ADWIdataset=cttable-id=07.CN

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