The UK Government has announced a Draft Taxi and Private Hire Vehicle Bill that would replace the current patchwork of licensing rules with a single national framework. The Bill introduces a national driver database, mandatory information sharing between councils, stronger cross-border enforcement, and improved accessibility standards. It is currently at the pre-legislative scrutiny stage, so none of these changes are law yet, but they signal the direction the industry is heading.
The Draft Taxi and Private Hire Vehicle Bill was announced as part of the King’s Speech on 13 May 2026. It represents the most significant proposed overhaul of private hire licensing reform in decades. The Bill aims to replace the fragmented system currently in place across England with a single, consistent framework for licensing drivers, vehicles and operators.
At the moment, private hire licensing outside London is governed by legislation dating back to the Town Police Clauses Act 1847. The rules underpinning much of the trade were written in an era of horse-drawn carriages and locally operating vehicles. While the Act itself is not technically limited to horse-drawn transport, the Government’s position is that it was never designed for a market shaped by app-based booking and cross-border working. Over the years, incremental changes have created a patchwork of different standards, enforcement powers and conditions that vary from one council to the next.
For private hire drivers working across platforms like Uber and other operators, this fragmented system has created real practical challenges, particularly around cross-border working, inconsistent licensing standards and gaps in enforcement.
Two main forces are driving this reform. The first is the rise of app-based booking. When the current laws were written, private hire was a local business. A driver got licensed in their area and worked in their area. Today, platforms connect drivers with passengers across council boundaries as a matter of routine, and the regulatory framework has not kept pace.
The second driver is safeguarding. Reviews led by Baroness Casey and others have identified taxi and private hire licensing as an area vulnerable to exploitation, particularly where oversight is inconsistent and information is not shared effectively between authorities. The Government has been explicit that the Bill is intended to address licensing weaknesses that have been exploited to cause serious harm.
According to the Department for Transport’s official taxi and private hire vehicle statistics, there were 313,000 licensed vehicles and 381,100 licensed drivers in England as of 1 April 2024. The Government’s background briefing notes for the King’s Speech state that 52% of all taxi and private hire journeys support economic activity, education or essential services. This is a major part of the transport network, and the Government’s position is that it needs a regulatory framework that reflects that.
The Draft Bill focuses on five key areas.
A single national framework
The Bill would replace the current council-by-council approach with one set of licensing standards across England. This means the rules around getting and holding a licence would be consistent regardless of where a driver is based.
A national database of drivers, vehicles and operators
A central database would be created to support safeguarding investigations, licensing checks and enforcement. At the moment, there is no single system that allows authorities to see the full picture across council boundaries.
Mandatory information sharing between licensing authorities
Current legislation does not require councils to share licensing information with each other. The Bill would change that, closing a gap that safeguarding reviews have repeatedly highlighted.
Stronger cross-border enforcement powers
Cross-border hiring, where drivers get licensed by one council but work primarily in another, has been one of the most contentious issues in the trade. In some areas, the majority of licences issued are to drivers who live and work elsewhere. The Bill aims to tackle this by giving regulators stronger tools to enforce standards where journeys actually take place, not just where the licence was issued.
Improved accessibility for disabled passengers
The Bill also aims to remove practical and legal barriers that affect disabled passengers. According to the Government’s briefing notes accompanying the King’s Speech, people with mobility difficulties make almost 70% more taxi and private hire trips per year than those without.
This is the area most likely to affect working drivers on a day-to-day basis. At the moment, it is legal for a driver to obtain a licence from one council and then operate almost entirely in another area. Some councils have become known for issuing large numbers of licences to out-of-area drivers, with Wolverhampton being a frequently cited example. According to BBC News reporting based on council data, up to 96% of licences issued there between April 2023 and March 2024 were for drivers living outside the city.
The Government’s position is that this creates a mismatch between where licences are issued and where enforcement resources are needed. The Draft Bill signals an intention to close this gap, although the precise mechanisms will become clearer as the legislation progresses through scrutiny.
For private hire drivers who currently operate under a licence from a different authority to the one they mainly work in, this is worth watching closely. It does not mean immediate changes, but it does indicate the direction of travel.
No. The Draft Taxi and Private Hire Vehicle Bill has been put forward for pre-legislative scrutiny. This means it will be examined by a parliamentary committee before being formally introduced as a Bill. There will be opportunities for industry stakeholders, drivers and the public to feed into the process. It could still be amended significantly before it reaches Parliament, and the timeline for it becoming law is not yet confirmed.
That said, the fact that it was included in the King’s Speech signals strong Government commitment to seeing it through.
Nothing changes immediately. The current licensing framework remains in place while the Bill goes through the scrutiny process. But it is worth staying informed, particularly if you hold a licence from one authority and work mainly in another, or if you operate across multiple areas.
The Bill also reinforces the importance of being properly licensed and insured wherever you work. Whatever shape the final legislation takes, the direction is clearly towards higher and more consistent standards across the board.
If you are a private hire driver looking for cover that fits the way you work, get a quote today to see what options are available for your circumstances.
Sources
Department for Transport – Taxi and private hire vehicle statistics, England: 2024. gov.uk/government/statistics/taxi-and-private-hire-vehicle-statistics-england-2024
UK Parliament – King’s Speech 2026, background briefing notes on the Draft Taxi and Private Hire Vehicle Bill. assets.publishing.service.gov.uk
UK Parliament – Transport Committee inquiry into licensing of taxis and private hire vehicles. committees.parliament.uk/work/9260
House of Commons Library – Taxi and private hire vehicle licensing in England, research briefing. commonslibrary.parliament.uk/research-briefings/SN02005
BBC News – Rise in taxi licences for drivers from outside city (Wolverhampton cross-border licensing data). bbc.co.uk/news/articles/c4n13jg4d27o
UK Government – Local transport authorities and the licensing of taxis and private hire vehicles, consultation. gov.uk/government/consultations
Legislation.gov.uk – Town Police Clauses Act 1847 (c. 89). legislation.gov.uk/ukpga/Vict/10-11/89