GM Taxi System: A Fix on the Horizon?

Greater Manchester's taxi system, once a clear and locally controlled entity, has found itself at a critical juncture. Described by Mayor Andy Burnham as 'broken', the current regulatory framework allows thousands of private hire vehicles to operate within the city-region without holding a local licence. This burgeoning issue of 'out-of-area' licensing has created a significant challenge, weakening local oversight and raising serious concerns about safety, standards, and accountability. But with a new campaign launched and an intensive review underway, is a comprehensive fix finally on the horizon for Greater Manchester's vital taxi network?

The crux of the problem lies in a legislative loophole: private hire vehicles can be licensed by one authority yet operate predominantly in another. This has led to a dramatic surge in vehicles licensed outside Greater Manchester's ten councils, with startling figures showing nearly half of all private hire vehicles on its streets now falling into this category. The City of Wolverhampton Council, for instance, has become a major licensor, now accounting for over 11% of all private hire vehicle licences issued across England. This practice effectively severs the link between the driver, their vehicle, and the local authority responsible for the area they serve, making it incredibly difficult for Greater Manchester's councils to enforce the safety and quality standards they deem necessary. Without this crucial local oversight, there's a tangible disconnect between regulatory intent and on-the-ground reality, leaving passengers potentially vulnerable and local authorities powerless.

A Unified Stand: The 'Backing Our Taxis' Campaign

In response to this growing challenge, Mayor Andy Burnham has launched the 'Backing our taxis: Local. Licensed. Trusted.' campaign. This initiative is not merely a call for minor adjustments but a demand for fundamental reform to England’s taxi licensing laws. The central pillar of the campaign is a plea for the English Devolution Bill to be amended, granting Mayoral Combined Authorities like Greater Manchester the necessary powers over local taxi licensing. This would enable them to prevent 'out of area' operations, ensuring that vehicles and drivers operating within the region are licensed by local authorities who have a direct relationship with them.

The vision is clear: to create a taxi fleet that mirrors the high standards being set by the Bee Network buses, where local control has demonstrably driven up standards and passenger confidence. By bringing licensing powers closer to home, Greater Manchester aims to enhance public safety, boost passenger confidence, and crucially, provide better support for its taxi drivers. The Mayor argues that genuine devolution of these powers would allow local policy to be aligned with community needs, fostering a safer, more accountable, and more efficient transport system for everyone.

Raising the Bar: Enhanced Safety and Standards

The implications of devolving taxi licensing powers are far-reaching, particularly concerning safety and operational standards. Under the current fragmented system, local authorities in Greater Manchester have 'zero oversight' over a significant portion of the vehicles operating within their boundaries. This means a lack of control over vehicle maintenance checks, driver vetting processes, and the ability to swiftly investigate incidents or collisions involving out-of-area licensed taxis. A clearer, more direct link between Greater Manchester Police and the licensing authorities is also a key aspiration, designed to allow for quicker and more effective investigations into any incidents where a taxi is involved.

By regaining control, local leaders could enforce uniform high standards across all public transport, including private hire vehicles, regardless of how they are booked. This would encompass rigorous vehicle standards, ensuring all taxis are well-maintained and roadworthy, and robust driver vetting, providing public confidence that every journey is safe and reliable. The ultimate goal is to guarantee residents that any taxi they step into within Greater Manchester meets the region's expected levels of quality and safety.

Supporting the Backbone: Empowering Greater Manchester's Drivers

Beyond passenger safety, the campaign is deeply committed to safeguarding the livelihoods of Greater Manchester's taxi drivers. Mayor Burnham acknowledges the immense pressure drivers have faced in recent years and stresses that the reforms are as much about making Greater Manchester the best place to be a taxi driver as they are about passenger experience. Local control would provide the ability to better manage the number of taxis serving communities and incentivise drivers to license locally, fostering a stronger sense of community and alignment with local policy.

The campaign also calls for wider government support to assist drivers in transitioning to cleaner and more accessible vehicles. Specific recommendations include:

• Extending VAT exemptions to new wheelchair-accessible taxis.
• Prolonging the national Plug-In Taxi Grant for electric vehicles.
• Lowering VAT rates for public EV charging.

These measures are crucial for encouraging the adoption of greener vehicles, aligning with the region's broader Clean Air Plan. Greater Manchester has already secured £8 million to support Hackney carriage drivers in upgrading their vehicles, and the ongoing review will explore similar funding options, including low-interest loans, for private hire drivers. Furthermore, council leaders have backed proposals to give drivers more time to comply with vehicle emission standards, setting a new target date for the end of 2026, with potential exemptions for vehicles meeting age-limit conditions.

The Path Forward: Reviews and Timelines

The push for reform is not just aspirational; concrete steps are already in motion. A comprehensive 12-week review of licensing policy in Greater Manchester is currently underway. This review is being led by Sara Todd, Chief Executive of Trafford Council, and is supported by expert consultants ARUP/AECOM. Its primary objective is to gather diverse views from the taxi trade through questionnaires, surveys, and interviews, aiming to identify improvements in process efficiency, standards, and financial incentives.

This in-depth discussion with the trade is vital, as it seeks to understand the underlying issues affecting drivers and explore how local licensing processes can be improved and how drivers can be incentivised to register locally without compromising standards. While Greater Manchester is committed to doing everything possible under the current system, it is clear that effective, lasting change will only be achieved through national-level reforms to address the 'out of area' licensing issue.

Evolution of Private Hire Vehicle Licensing in Greater Manchester

Frequently Asked Questions

What does 'out-of-area' licensing mean for passengers in Greater Manchester?
It means that nearly half of the private hire vehicles you might book or use are licensed by authorities outside Greater Manchester. This can lead to a lack of direct local oversight regarding driver standards, vehicle maintenance, and accountability, potentially impacting your safety and the quality of your journey.

How will these proposed changes improve safety for passengers?
By giving Greater Manchester's local authorities control over all taxis operating within the region, they can enforce consistent, high safety standards for all vehicles and drivers. This includes more rigorous checks, better accountability, and a clearer link with police for faster investigations into incidents, ensuring a safer and more reliable service.

Will taxi fares increase if these reforms are implemented?
The current proposals primarily focus on improving safety, standards, and driver support, rather than directly addressing fare structures. While improved standards might have associated costs, the primary aim is to create a more trusted and regulated system, which could indirectly lead to greater passenger confidence and demand.

What support is being offered to taxi drivers to help them comply with new standards?
The campaign calls for extended VAT exemptions for wheelchair-accessible taxis, prolonged Plug-In Taxi Grants for electric vehicles, and reduced VAT on public EV charging. Additionally, £8 million has been secured for Hackney carriage drivers to upgrade vehicles, and similar support, including low-interest loans, is being explored for private hire drivers. There's also a new target date of end-2026 for emission compliance, with potential age-limit exemptions.

When are these changes expected to take effect?
A 12-week review of licensing policy is currently underway, aiming to gather views and identify improvements. However, the most significant changes, particularly those related to stopping 'out-of-area' operations, require amendments to the national English Devolution Bill. The timeline for these legislative changes will depend on government action.

The journey to a truly integrated, safe, and trusted taxi network in Greater Manchester is complex, requiring both local commitment and national legislative change. Mayor Andy Burnham's campaign represents a significant step towards addressing the long-standing issues within the system. By pushing for greater accountability and supporting drivers in their transition to cleaner, more accessible vehicles, Greater Manchester aims to build a taxi fleet that is not only crucial for the transport network but also a source of pride and confidence for its residents and visitors alike. The coming months will be pivotal in determining whether this ambitious vision can be fully realised, transforming Greater Manchester into a leading example of how local control can foster a truly trusted public transport system.

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