English Devolution and Community Empowerment Bill

Debate between Baroness Pidgeon and Lord Blunkett

Thursday 5th March 2026 Grand Committee

[Baroness Pidgeon (LD)]

My Lords, there are a number of issues in this group on taxis and private hire, but I will explain my Amendments 235BA, 235CB and 235CC. I thank the noble Lords, Lord Hampton and Lord Bradley, and the right reverend Prelate the Bishop of Manchester for adding their names to them.

Out-of-area working, also called cross-border hiring, allows drivers and vehicles licensed in one area to operate entirely in another. The scale of this is highly significant and is a major feature of the private hire sector nationally. It is estimated that more than 11% of all private hire vehicles nationally are licensed by just one licensing authority: the City of Wolverhampton Council. Let us put this into some context. Back in 2023, TfL was aware of at least 300 private hire vehicle drivers licensed by Wolverhampton but with a London residential address. Data from Greater Manchester shows that 49% of private hires operating in Greater Manchester are licensed by authorities outside of their current 10 local licensing authorities.

Why does this matter? It undermines the ability of local licensing authorities to regulate effectively and creates serious risks for public safety. Last year, the Casey audit into group-based child sexual exploitation exposed harrowing failures in protecting vulnerable children and identified that cross-border hiring was being exploited by individuals and groups sexually exploiting children. The noble Baroness, Lady Casey, recommended that the Government should introduce more rigorous safety standards and put a stop to cross-border hiring. The recommendation was:

“The Department for Transport should take immediate action to put a stop to ‘out of area taxis’ and bring in more rigorous statutory standards for local authority licensing and regulation of taxi drivers”.


The Government accepted all the recommendations made in the report, in order, they said,

“to get justice for victims and survivors, and to get perpetrators behind bars”.

However, the Government have not yet set out when and how they will take action that fully closes the loophole that enables cross-border hiring. In December, they introduced amendments to this Bill that have focused only on national minimum standards. Although those national minimum standards may work to ensure a strong foundation and ensure that more consistent standards apply across different licensing authorities—I welcome this as one step in dealing with this complex issue—this alone does not go far enough. These standards will be subject to consultation, with no clear deadlines for implementation, and they do not close the existing loophole. They are only part of the solution to addressing the recommendation of the noble Baroness, Lady Casey.

Additionally, the Government have not set out how national minimum standards will be enforced. Enforcement is already a challenge for many licensing authorities, and the ability of drivers effectively to licence shop means that authorities who rely on local licensing fees to fund their enforcement will continue to be undermined. I also understand that there is anecdotal evidence that existing enforcement mechanisms are not being used correctly by all licensing authorities, including in cases of driver behaviour representing public safety concerns.

In January, the Government launched a consultation into simplifying the taxi licensing system. However, this is about significantly reducing the number of taxi licensing areas, and it does not set out any actions to address the issue of out-of-area working, meaning that passenger safety will remain at risk. In London, Transport for London has long called for national enforcement powers, which would enable enforcement officers to uphold national standards regardless of where a driver or vehicle is licensed, supported by data-sharing provisions. In Greater Manchester, the mayor and leaders of all 10 local authorities have been advocating for an end to out-of-area licensing, most recently through their “Local. Licenced. Trusted” campaign which they launched last April. In addition, an independent review undertaken in Greater Manchester, with input from over 5,200 licensees, trade bodies and local authority officers, highlighted that legislating on out-of-area was necessary, even in a regional system with licensing powers at a city-region level.

If the Government are serious in their commitment to improve standards and safety for this industry, this Committee urgently needs assurances from the Government on how and when they will fully close the loophole of cross-border hiring and that they will continue to improve enforcement powers as part of their review of the industry. My Amendments 235CB and 235CC look to tackle the out-of-area licensing issue and have the support of Transport for London, Transport for Greater Manchester, other metro-mayor areas and the Local Government Association, which I have contact with. It said:

“The LGA supports this amendment as the most effective way, combined with minimum standards, to meet Baroness Casey’s objective”.


However, I have also tabled my Amendment 235BA, which would grant powers to all licensing authorities to take enforcement action on any private hire or taxi vehicle on their streets, wherever they are licensed. In my view, this could be the way forward that would plug the gap that the noble Baroness, Lady Casey, flagged, but would also allow the Government time to review and research the other issues, such as cross-border hiring, standards and so on, so that, in tackling one issue, the legislation does not restrict access to taxi services in another area. I hope that the Minister will consider that carefully.

The accessibility issues that have been raised by the noble Lord, Lord Borwick, and other noble Lords today are really important as we look at private hire and taxi services across the country. I thank the Ministers for meeting me and other noble Lords to discuss the complexity of issues in this area and I look forward to hearing the Minister’s response.

[Lord Blunkett (Lab)]

My Lords, I shall be very brief for the reasons that we all know about—the number of votes that have taken place in the House this afternoon.

I offer my support to the movers of the amendments that have just been spoken to, first on accessibility. It is fairly close to my heart. Even with a high national profile, I have sometimes had real problems with accessible transport because of having a guide dog, and it is a nightmare for those who are wheelchair users. I hope that we can do something that is within the practicalities of protecting those who are prepared to have the vehicles and pay the extremely substantial investment that is needed to have accessible vehicles when Uber and other operators clearly do not.

I also give my support to the noble Baroness, Lady Pidgeon. An issue has been rumbling along for years in relation to the licensing shopping scheme, where people have been able to license a taxi and then rove around the country, which certainly put people at risk. In my own region, that applied to Rotherham. Apart from Wolverhampton, my city of Sheffield seems to have an inordinate number of taxis licensed in Kirklees in West Yorkshire; we clearly need to do something about it. There would have to be flexibility.

In my Amendments 235CA and 235E, which I speak to this afternoon, I am trying to say that there should first be a recognition that devolution and local empowerment means that there should be continuing engagement of elected members. That is not easy in strategic authorities that are combined authorities, because although we can proclaim elected mayors, the engagement of those who know the localities within which those strategic authorities are placed is left out.

First, we need an accountable input and, secondly, we need national standards that apply right across England and deal, in part at least, with the correct assessment that the noble Baroness, Lady Pidgeon, made of the difficulties and dangers. There should be some flexibility: if you are genuinely licensed in Wolverhampton but the license authority becomes the West Midlands Combined Authority, you need to also be able to use your licence in Telford in Shropshire. I know it quite well and I think that people in Shropshire county are quite bereft of taxi services as it is. There needs to be flexibility that allows the licensing authority to specify very clearly and then, as the noble Baroness rightly said, to actually have some enforcement powers.

But local authorities also tell me that we need transitional arrangements. We need to assess the costs and ensure that there is that genuine local input. There is a serious issue here. I know my noble friend very well and know he will be incredibly sympathetic to the points that have been made this afternoon and, overcoming internal bureaucracies within government, will seek to find a way forward on Report, should we reach it.