30/03/2019
The bustling streets of Greater Manchester are a familiar sight for countless taxis, ferrying commuters and revellers alike. However, behind the seamless flow of traffic, a significant debate has been brewing, centring on the origins of many of these vehicles. A substantial proportion of private hire vehicles operating within Greater Manchester are, surprisingly, licensed by Wolverhampton Council, a situation that has ignited a fierce discussion among local authorities, cabbies, and transport officials. This unusual arrangement has prompted Greater Manchester Mayor Andy Burnham to advocate vigorously for changes, welcoming a recent government commitment as a 'big step forward' towards potentially banning these out-of-area operations and restoring local control over taxi licensing.

The sheer scale of this phenomenon is striking: nearly 9,000 private hire drivers in Greater Manchester, accounting for approximately 35 per cent of the total, hold licenses issued by Wolverhampton Council. This figure, revealed earlier this year by the Manchester Evening News, underscores the widespread nature of the issue. While Wolverhampton Council maintains that its licensing regime is not inherently easier, quicker, or cheaper, it is widely understood that drivers opt for registration there precisely for these perceived advantages. The council is not acting illegally, yet this practice has left many Greater Manchester cabbies feeling understandably aggrieved, and local councils frustrated by their inability to exert control over vehicles operating within their own jurisdictions.
The Heart of the Matter: Why Wolverhampton?
The primary driver behind private hire operators seeking licenses from Wolverhampton, despite operating hundreds of miles away in Greater Manchester, is a perceived disparity in licensing requirements and processes. While Wolverhampton Council denies that its regime is 'easier, quicker, or cheaper', this perception persists strongly among drivers. The implications of this are far-reaching. If drivers can obtain a license more readily elsewhere, it creates a loophole that undermines local efforts to manage and regulate the taxi trade effectively. This perceived ease might relate to the speed of application processing, the cost of fees, or even the stringency of certain checks, though specific details are not publicly detailed in the current discourse. The attractiveness of an efficient, cost-effective licensing process in one area can inadvertently draw drivers from across the country, creating a complex web of cross-border operations that challenge traditional regulatory frameworks.
This situation highlights a fundamental tension between local autonomy and the mobility of services. While drivers are free to choose where they are licensed, the impact of this choice on the areas where they predominantly operate is profound. Local authorities in Greater Manchester find themselves in a peculiar position: they bear the brunt of managing the traffic, congestion, and public safety concerns associated with a large fleet of vehicles over which they have no direct licensing authority. This lack of control fosters a sense of helplessness among councils and fuels resentment within the local taxi industry, which often adheres to stricter local regulations and faces direct competition from out-of-area vehicles.
Public Safety and Standards: A Growing Concern
Perhaps the most critical concern stemming from out-of-area working revolves around public safety and the consistency of standards. When a taxi or private hire vehicle is licensed by an authority far removed from its operational base, local councils argue they have no control over the standards of those vehicles or, crucially, the drivers behind the wheel. This includes vital checks such as criminal records, vehicle roadworthiness, and driver conduct. While all licensing authorities are bound by national guidelines, variations in local enforcement, specific conditions, and ongoing monitoring can create inconsistencies. Greater Manchester Mayor Andy Burnham has explicitly stated that 'out of area working creates worries for us in terms of standards, criminal records checks, etc. So public safety is a chief concern.'
The current system means that if a Greater Manchester resident has a concern about a taxi licensed in Wolverhampton, the complaint process can be convoluted, requiring engagement with an authority that is geographically distant and potentially less familiar with the local context of the incident. This disconnect can undermine public confidence and make effective oversight challenging. Ensuring that all vehicles and drivers operating within a specific area meet uniform, high standards is paramount for passenger safety and maintaining the integrity of the taxi and private hire industry. The current fragmentation of licensing responsibility across geographical boundaries presents a significant hurdle to achieving this consistency, leading to calls for a more localised and integrated approach to regulation.
Mayor Burnham's Crusade: A 'Big Step Forward'
For some time, Greater Manchester Mayor Andy Burnham has been at the forefront of efforts to address the issue of out-of-area taxi licensing. His push for greater local control has now received a significant boost with the recent English Devolution White Paper. This pivotal document, unveiled on Monday, December 16, signals a government willingness to consult on whether to grant other mayors, including those in Greater Manchester, similar powers over taxi licensing to those currently held by the Mayor of London. This potential shift is viewed by Mr Burnham as a 'big step forward' towards achieving the desired changes.
The London model, where the Mayor runs the taxi licensing regime, offers a precedent for what Greater Manchester is seeking. Outside of the capital, taxi licensing is currently the sole responsibility of individual councils, leading to the fragmented system currently causing concern. The White Paper's commitment to exploring how best to address concerns about out-of-area working by giving mayors power over taxi licensing is a direct response to these persistent issues. Mr Burnham expressed optimism, stating, 'I think we're heading towards an end of out of area working hopefully in the devolution bill that comes out of this White Paper but there's another hurdle to cross there with the consultation. But I'm confident we can get there.'
The Economic and Regulatory Landscape
Beyond public safety, the proliferation of out-of-area licensed taxis also impacts the economic and regulatory landscape of Greater Manchester. One significant concern is the sheer number of vehicles on the roads, particularly in the city centre during peak times like weekends. Mayor Burnham noted, 'In the city centre on weekends there's a large number of Wolverhampton licensed taxis and we're not able to control that.' This uncontrolled influx can lead to increased congestion, environmental impacts, and a strained local transport infrastructure. Local councils are currently powerless to limit the number of these vehicles, even if they deem it necessary for traffic management or environmental reasons.
Furthermore, the competitive landscape for locally licensed cabbies is significantly altered. Drivers who undergo the full licensing process in Greater Manchester, adhering to potentially more stringent local requirements and costs, can feel unfairly disadvantaged when competing with vehicles licensed under a perceived 'easier' regime elsewhere. This creates an uneven playing field and can foster discontent within the local taxi trade, as indicated by Mr Burnham's expectation of 'two cheers if not three cheers from the Greater Manchester taxi trade' for this development. The White Paper suggests that administering taxi and private hire vehicle licensing across a larger, devolved footprint would 'increase the consistency of standards and enable more effective use of enforcement powers across a whole functional economic area.' It also posits that 'Greater economies of scale should also enable authorities to improve the efficiency of licensing, reducing the incentives for people to license out of their usual working area,' thereby addressing the very root cause of drivers seeking licenses elsewhere.
Comparing Current and Proposed Licensing Regimes
| Feature | Current Situation (Outside London) | Proposed Situation (Devolved Mayoral Powers) |
|---|---|---|
| Licensing Authority | Individual Local Councils (e.g., Wolverhampton, Manchester) | Regional Mayoral Authority (e.g., Greater Manchester Mayor) |
| Control over Out-of-Area Taxis | Limited to no control for operational area council | Increased control and potential for regulation/ban |
| Consistency of Standards | Varies between different council areas | Expected to increase across the devolved region |
| Enforcement Powers | Fragmented, difficult across council boundaries | More effective across a larger, unified area |
| Incentive for Out-of-Area Licensing | High, due to perceived differing requirements/costs | Expected to decrease due to regional consistency |
| Public Safety Oversight | Challenging for operational area when licensed elsewhere | Improved through unified regional oversight |
| Traffic & Vehicle Number Control | Difficult for local councils to manage out-of-area vehicles | Potential for greater regional control over vehicle numbers |
The Road Ahead: Consultation and Consequences
While the government's recognition of concerns and its commitment to explore mayoral powers marks a significant milestone, the journey towards a definitive resolution is not yet complete. The White Paper explicitly states that the government will 'work with stakeholders' to 'understand possible impacts before taking a final decision.' This signals an upcoming consultation process, the details of which are yet to be set out. This consultation will be a crucial stage, allowing various parties – including taxi operators, licensing authorities, passenger groups, and local businesses – to voice their perspectives and highlight potential implications, both positive and negative, of such a substantial change.
The potential consequences of granting mayors more control over taxi licensing are far-reaching. For Greater Manchester, it could mean a more integrated and consistent approach to transport planning, allowing the mayor's office to better manage vehicle numbers, enforce local standards, and ensure that all taxis operating within the region meet stringent safety and quality benchmarks. It could also lead to a fairer competitive environment for local taxi drivers who have long felt disadvantaged. However, for drivers currently licensed out of area, it could necessitate re-licensing under a new, potentially stricter, regional regime. The process will require careful consideration to balance the needs of public safety and local control with the livelihoods of drivers and the operational realities of the taxi industry.
Frequently Asked Questions
- Why are so many taxis in Greater Manchester licensed by Wolverhampton Council?
It is widely understood that drivers register in Wolverhampton because its licensing regime is perceived to be easier, quicker, and cheaper, though Wolverhampton Council denies this. - What are the main concerns about out-of-area taxis?
Key concerns include a lack of local control over vehicle and driver standards, potential inconsistencies in criminal records checks, difficulties in enforcement, and the inability to manage the sheer number of vehicles on Greater Manchester roads, particularly in the city centre. Public safety is a primary concern. - What is Andy Burnham proposing to do about it?
Greater Manchester Mayor Andy Burnham is advocating for devolved powers over taxi licensing, similar to those held by the Mayor of London, to allow him to regulate and potentially ban out-of-area taxis operating in Greater Manchester. - What is the government's stance on this issue?
The government 'recognises' concerns about out-of-area working by private hire vehicles and, in its English Devolution White Paper, has promised to explore giving mayors powers over taxi licensing to address these issues. - What happens next in the process?
The government will consult on whether to give mayors these powers. This consultation will involve working with various stakeholders to understand the possible impacts before a final decision is made and potentially incorporated into a future devolution bill. - Will this definitely lead to a ban on Wolverhampton-licensed taxis?
While Mayor Burnham is optimistic, the White Paper outlines a consultation process. The outcome of this consultation and subsequent legislative steps will determine if a ban or other forms of regulation are implemented. The aim is to reduce incentives for out-of-area licensing through greater consistency and efficiency.
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