Out-of-area taxi-licensing reform in King's Speech

The government will press on with reforming taxi licensing to clamp down on out-of-area taxi work, after some details were set out in the King's Speech on Wednesday.

Wolverhampton has been dubbed the "taxi capital" of the UK as the city council has become the largest licensing authority in England.

But details in the speech on a draft Taxi and Private Hire Vehicle Bill stated: "Without a closer match between where licences are issued and where journeys take place, enforcement activity and resources remain misaligned, limiting effectiveness and undermining public confidence."

The City of Wolverhampton Council said it "wholeheartedly" supported any government plans for reform.

Ministers first stated in January that they were to overhaul the practice of out-of-area taxi work, in which drivers get a licence in one place but operate mainly in another.

Up to 96% of taxi driver licences issued in Wolverhampton between April 2023 and the end of March 2024 were for people living outside of the city.

In November, figures showed the council had licensed 33,893 private hire vehicles in 2025, compared to 10,768 in 2020.

Several councils around the country have raised concerns about Wolverhampton's taxi licensing, although applicants can apply to any licensing authority.

But the varying licensing standards and practices among authorities was highlighted in the speech: "Including in decision-making, fees, conditions, and enforcement activity.

"While national standards are expected to improve baseline consistency and reduce incentives for drivers and operators to license away from where they intend to work, taken alone they are unlikely to resolve the full problem."

In response, the city council said safeguarding was its "number one priority" in taxi licensing and supported the government's plans for reform.

"We gave evidence to the government's Transport Select Committee, stating that the law needs urgent reform and have called for the introduction of uniform standards, uniform fees and improved cross border enforcement powers," a spokesperson said.

They added it was illegal to refuse taxi applicants on the basis of where they live and was also illegal to impost a time limit on the number of private hire licences issued.

"We do not gain financially from taxi licensing, as the fees are legally ring-fenced for spend only on related activities," they said.

The draft Taxi and Private Hire Vehicle Bill will also look at introducing a national database of all licensed taxis and hire vehicles and give regulators stronger enforcement powers, a government spokesperson said.

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