In 2015, the UK government passed the Deregulation Act — a wide-reaching piece of legislation designed to reduce bureaucracy across many industries. But hidden in the fine print was a major change to taxi and private hire licensing that has since caused serious problems for local councils, operators, and drivers.
What Changed in 2015?
The Deregulation Act 2015 included a clause that allowed private hire vehicles (PHVs) licensed in one council to operate freely in any other council area in England and Wales.
Before 2015:
A driver could only operate where they were licensed.
After 2015:
A PHV licensed in Council A can work in Council B, C, or anywhere else, as long as the booking is made through their original operator.
This change was made without consulting many in the industry and has led to serious consequences for local regulation and passenger safety.
📅 You can read the full Act here: Deregulation Act 2015 on legislation.gov.uk
Why This Is a Problem
This loophole, now known as cross-border hiring, has:
Removed control from local councils: Licensing authorities can no longer stop out-of-town drivers from flooding their streets.
Created safety gaps: A driver licensed 100+ miles away may not meet local standards for DBS checks, vehicle signage, or safeguarding.
Undercut local operators: Some areas now issue thousands of licences because they have low entry requirements — letting drivers work anywhere in the country.
The worst part? Councils can’t do much about it. Even if local passengers complain, the council has no authority to discipline or revoke licences issued elsewhere.
Real-World Example: Wolverhampton
Wolverhampton has issued over 35,000 taxi licences — far more than its population needs.
Drivers with Wolverhampton plates are now working all over the UK.
Local authorities like Wyre Forest, Redditch, and Worcester have lost enforcement power.
Why It Matters to You
If you’re a:
Driver: You’re playing by the rules, while others exploit the system.
Operator: Your local trade is undercut by out-of-town cars.
Passenger: You might be picked up by a driver your local council never vetted.
This isn’t just a licensing issue. It’s a public safety issue and a threat to the future of local taxi services.
What Taxi Unity Is Doing About It
We’re building a platform to:
Help local associations and drivers speak with one voice
Launch petitions to show public and industry support
Push councils and MPs to close the cross-border loophole
Call for restoring local council powers over licensing and enforcement
Join the Campaign
We can’t undo the Deregulation Act alone. But together, we can build enough pressure to force the changes that matter.
[Sign the Petition]
[Learn More About Taxi Unity]
[Start or Join a Local Chapter]
Taxi Unity — Protecting Local Drivers. Rebuilding Local Control.