Tuesday, April 09, 2013


Following an extensive consultation on the regulations governing taxis and mini-cabs (private hire vehicles), the Law Commission has announced, in an interim statement, a change of direction on two key proposals: setting restrictions on local taxi numbers, and licensing for wedding cars.

The Commission initially proposed abolishing the right of licensing authorities to restrict the number of taxis permitted to operate in an area. But it has been convinced that the benefits of change are outweighed by the advantages of continuing to allow restrictions. On the one hand, the Commission accepts that restrictions can have a place in combating congestion and over-ranking, and supporting a viable taxi trade to maintain high standards. On the other, there is no compelling evidence that de-restriction reduces fares or has a significant effect on waiting times. It will also recommend that areas where numbers of taxis are now limited should be able to retain their traditional “plate value” systems. If new areas regulate numbers, however, licenses would not be transferrable, preventing plate values from accruing.

The proposal to bring wedding and funeral cars into the same regulatory framework as mini-cabs has also been revisited, and the Commission will be recommending that they retain their statutory exemption from licensing, rather than relying on the Secretary of State or Welsh Ministers to exempt them.

The Commission has restated its commitment to keeping the two-tier system that distinguishes taxis from mini-cabs. It will recommend retaining the local nature of the hackney trade, with only taxis being able to pick up passengers from a rank or on the street (“ply for hire”). Mini-cabs should continue to be restricted to offering a pre-booked service.

Frances Patterson QC, the Law Commissioner leading the project, says: “The legal framework governing the taxi and private hire trades is complex and inconsistent. The purpose of our review is to improve and simplify it, and ensure it is fit for purpose.

“We listened to a great many people during our consultation – drivers, operators, licencing authorities and passengers. They confirmed what we have always believed, that the two-tier system distinguishing taxis and mini-cabs should stay. And they convinced us that the trade and its passengers will benefit if licensing authorities continue to have the power to limit taxi numbers.”

The Commission is half way through its review and expects to make final recommendations for reform to Government at the end of the year. In light of the consultation, which brought in more than 3,000 responses, it has reached a number of other early decisions on what it will recommend, including:
Applying a national set of standards for mini-cabs.
Introducing compulsory disability discrimination training for all drivers, and making it a licence condition that drivers should not discriminate against disabled passengers.
Responses to the Commission’s consultation can be found on www.lawcom.gov.uk. The final report, with a draft Bill, will be published at the end of 2013.


1. In July 2011 the Law Commission started working on the project to review of the law relating to the regulation of taxis and private hire vehicles. We opened a four month consultation period in May 2012, outlining provisional proposals and questions, with a view to publishing a final report and draft Bill at the end of this year. Once we publish the draft Bill, it is up to government whether to accept our recommendations. We will publish our final report and a draft Bill at the end of 2013.

2. This is not a further consultation nor does this document include our analysis of the responses received. Our discussion of the responses and our reasoning will be published in the final report. This is an interim document outlining the key decisions we have reached. It is not normal practice for the Law Commission to publish any indication of its preferred policy at this point; however, we recognise that many stakeholders are concerned about possible changes to taxi and private hire licensing laws. We appreciate that waiting until the end of this year for our conclusions to be published is a long time. That is why we have decided to depart from our usual procedure and publish our thinking at this interim stage.

3. This deliberately short paper gives an indication of what will be contained in the proposed Law Commission draft Bill. We publish this alongside the responses we received during consultation. It should be stressed that this document is an interim statement and not our final report, and we will continue working on developing policy alongside Parliamentary counsel until the end of the year. It is important to be aware that our final recommendations might differ as a result of that process from those set out here. We continue to work to the government’s deadline of December 2013 for our final report and draft Bill, but we would take this opportunity to stress that our recommendations cannot change the law, and the decision whether to accept the proposed policy rests with the government.


4. The consultation attracted over 3000 written responses from a wide range of stakeholders, including taxi drivers and private hire operators, licensing officers,disability groups, specialist consultants, trade unions and the police. We attended consultation meetings and events over a period of four months. We attended 84 meetings across England and Wales, many of which attracted large-scale attendance, including conferences and meetings organised by taxi associations and trades unions representing taxi drivers, the Institute of Licensing and the National Association of Licensing and Enforcement Officers, trade associations and councillors, as well as a two day road show at an exhibition event, organised by the National Private Hire Association. The Private Hire and Taxi Monthly magazine undertook a significant survey based on our provisional proposals, with over 800 responses. We were also assisted by some very helpful discussions with experts in the field, including an advisory group and an expert legal panel on plying for hire.

Retaining a two-tier system

5. The two-tier system, distinguishing between taxis on the one hand, and private hire vehicles on the other, should remain. Only taxis should be allowed to pick passengers up from hails or at ranks. Private hire vehicles should only be able to pick up passengers if pre-booked through a licensed operator. When requested,operators should be required to give passengers the price of the journey up-front, as is already the case in London. London should be covered by the reforms, which wethink give enough flexibility to allow for the significant differences in its taxi and private hire markets. We suggest moving away from the out-dated concept of plying for hire and use instead a more modern definition of the limits to the way private hire services may be offered, using the concept of pre-booking (which would be statutorily defined) through a licensed operator.

Quantity controls

6. We no longer recommend abolishing quantity controls. We initially proposed that local authorities should lose the ability to limit the number of taxis licensed in their area on the basis of economic theory, whereby the market could be left to determine the appropriate number of vehicles. The weight of evidence received during consultation and further comparative research have led us to change this key recommendation in order to allow licensing authorities to limit taxi numbers should they wish to do so.

7. We propose that in any areas where the licensing authority chooses to implement new quantity restrictions, vehicle licences would not be transferrable, meaning that licences would not have a saleable value. In areas that already have quantity restrictions, transfers would continue (and therefore licences could still have a value), but we will recommend that the Secretary of State and Welsh Ministers should consider the future of licence transfers.

Who and what would be covered by licensing?

8. During consultation many stakeholders complained about vehicles operating at the fringes of licensing, or outside of licensing altogether. Pedicabs and stretch limousines are two examples that we recommend bringing clearly within the scope of taxi and private hire regulation, such that they may be controlled as necessary.

9. We recommend that wedding and funeral cars should continue to be exempted from licensing. Our provisional recommendation in respect of the wedding and funeral car exemption raised unparalleled concern among members of these trades, although licensing authorities and the police agreed that the current exemption could cause problems. On balance, we have concluded that there are valid arguments to keep the exclusion from licensing in primary legislation.


10. Our provisional proposals for national safety standards for both taxi and private hire services proved popular and we maintain this recommendation. We think that the Secretary of State and Welsh Ministers should have the power to set standards in relation to safety, accessibility and enforcement.


11. We also suggested that in respect of taxis, local authorities should retain their ability to impose additional conditions on top of national standards, and this too proved uncontroversial. Taxis would continue to only be able to be flagged down and use ranks in their licensing area, but would still be free to take pre-bookings elsewhere.

National standards for private hire services

12. We continue to recommend that only national standards should apply to private hire services. We appreciate the concerns of those who thought that local knowledge tests and signage should be retained, but think that appropriate national standards, including driver training, and vehicle signage, can address these concerns, alongside added customer protection through up-front pricing requirements for private hire journeys.


13. It would remain the case that taxis would only be allowed to pick up passengers in their own area (unless they had a pre-booking). However, we will recommend freeing up cross-border working for private hire services. Operators would no longer be limited to using drivers and vehicles from their own area; nor would they be restricted to only inviting or accepting bookings within that same licensing area. Under no circumstances would a private hire vehicle be allowed to pick up a passenger without a pre-booking with a valid operator.

Operators, taxi radio circuits and intermediaries

14. We support the retention of private hire operator licensing, but recommend a tighter definition that would only cover dispatch functions. We suggest that requiring a licence for the mere acceptance or invitation of bookings (as under current law) is unnecessary and creates grey areas around smartphone applications, aggregator websites and other intermediaries. We recommend that intermediaries should only be liable if acting in the course of business, and if they assist in the provision of an unlicensed journey. We do not propose to extend licensing to taxi radio circuits.

Equality and accessibility

15. We regard the Secretary of State and Welsh Ministers’ powers to set standards to promote accessibility as striking the right balance between local and national control.

16. Stakeholders highlighted the problem of drivers avoiding disabled passengers through ignoring their hails. In order to help address this problem, we recommend clarifying compellability, combining it with a new duty to stop in certain circumstances. In addition, taxi legislation should make it clear that drivers are not allowed to charge passengers more for the time it takes them to board the vehicle, reflecting the Department for Transport best practice guidance. Provisions to make complaints procedures more accessible can also be particularly valuable to empower disabled users. We will continue to recommend that all drivers should undergo disability awareness training.


17. Consultees were very concerned about enforcement – both that the current system was being insufficiently enforced, and that our proposals for opening up crossborder activities of private hire vehicles would increase the practical difficulties in information sharing and licence fee allocation. We recommend introducing a range of tougher powers for licensing officers, including the ability to stop licensed vehicles, impounding and fixed penalty schemes. We also recommend that such powers should apply in respect of out-of-area vehicles. We also recommend clarifying the scope of the touting offence and reinforcing licensing officers’ powers in dealing with it.

Hearings and appeals

18. Magistrates’ courts would continue to hear appeals in respect of licensing decisions. We think it should be easier to challenge local taxi conditions. We therefore recommend a simplified judicial review procedure in the County Court, akin to procedures that exist in relation to some housing challenges.

Law Commission9 April 2013



Why did they break with their normal pattern?

(I took this below from a Taxi forum earlier today)

Update on the BBC debacle of Sunday 7 April.

I was persuaded to appear on Radio 5 Live Investigates.

I duly worked through Friday and Saturday nights, collating and printing the remaining evidence I had collected concerning Sex Attacks in Manchester and the implications of the lack of any enforcement in Manchester which has led to nearly a hundred vehicles from ten different Authorities, some of whom were up to 90 miles away, coming here to work as PH cars.

I emphasized the fact that Manchester's PH vehicle restriction were brought in, after the savage murder of Rachel Thacker in 1996. Rachel was murdered by a Scot pervert who had ran from Scotland because the police were on to him. I suggested he had chosen Manchester, because of the reputation that we have that 'anything goes'.

I supplied evidence to this theory. The BBC were excited and we planned to go ahead with the broadcast.

On Sunday morning at 9 am a researcher with the program called me and cancelled the program. I asked why and received the non committal fudge about other news matters.

The program broadcast at 11.45 was a hastily arranged item about College fee rip off's.

I made inquiries and found that the Institute Of Licensing officer that was booked to be against/alongside me on the broadcast had pulled out.

Further inquiries revealed that something was happening at the Law Commission. That something, is published on this blog. It was obvious the Law Comm had been pressured into making an interim statement, something they admit they do not usually do.

I also note that Unites planned 'No Submission, to the Law Commission' rally is planned to leave Leeds and go to London on April 30.

The announcement today (April 9) will probably mean, that Unite will re think that strategy. It would appear they have won already why go to London mob handed now ??

We will see. As always, watch this space. You will get the info FIRST.

Source: http://www.mrblackcab.proboards.com/


Anonymous said...

This is dangerous and needs to be challenged immediately

13. It would remain the case that taxis would only be allowed to pick up passengers in their own area (unless they had a pre-booking). However, we will recommend freeing up cross-border working for private hire services. Operators would no longer be limited to using drivers and vehicles from their own area; nor would they be restricted to only inviting or accepting bookings within that same licensing area.

This will see hoards of PH vehicles descending on London over busy week ends from surrounding authorities working from Satellite offices seeing as how easy these licenses are to acquire.

w14dad said...

If out of town PH come to London, it will put greater pressure on an already inept and woefully lacking licensing authority. I can see war between the touts. London has to embark upon an upgrading of their enforcement services in the mould of New York.
Currently touts are raping vulnerable females, when will they start killing them? Come on LTPH, up your game.

Anonymous said...

Comes as no surprise, this article will attract little interest.
You'd get more reaction posting about football.

The drivers don't care that the trade is going down the toilet, they can't see further than tonight's shift.

Anonymous said...

Your rigth mate I tell drivers all the time just they just don't want to know all they want is the next fare

Anonymous said...

Just an idea, but think most of this will go right over most taxi drivers heads. Perhaps you could rewrite this post in easy to understand language

Anonymous said...

Probably just what LTPH is waiting for as they obviously don't understand this statement either.

Anonymous said...

a private hire from one city can work in another city ...how does that sound... yet a hackney carriage cant ... how safe is that for the public.
dream up anything and call it a law.