Why Cross-Border Licensing Still Dominates Industry Concerns
If there’s one issue that consistently unites taxi and private hire drivers across the UK, it’s the frustration of cross-border licensing. Ask anyone in the trade, and you’ll hear the same story: different councils, different standards, different enforcement and yet everyone’s sharing the same roads, the same apps, and the same passengers.
At its core, cross-border licensing refers to the legal loophole that allows private hire drivers to be licensed by one local authority but operate almost exclusively in another. In theory, it offers drivers flexibility. In practice, it’s created a regulatory Wild West, where the rules you're held to depend entirely on where your badge was issued, not where you're actually working.
For drivers playing by the book in stricter areas, it's maddening. They’re facing tougher vehicle standards, more frequent inspections, and higher compliance costs only to compete with out-of-area drivers who aren’t held to the same standards. It’s not just an uneven playing field; it’s one that’s undermining local licensing altogether.
And despite years of debate, court rulings, and promises of reform, the system hasn’t caught up. The industry is moving forward but the rules that govern it are stuck in the past.
What the Industry Tells Us
When we asked drivers across the UK to rank the issues most affecting their work, cross-border licensing came out on top — by some distance.
According to the National Taxi and Private Hire Driver Survey, nearly 80% of respondents reported active cross-border activity in their area. And for 8 out of 12 UK regions, it was named the single biggest concern. In fact, cross-border licensing earned the highest share of all concern-based responses, with 27.5% of drivers putting it first on their list.
It wasn’t just one region shouting loudest either. Drivers from London, the South East, the West Midlands, East Midlands, Yorkshire & the Humber, and even rural areas like Cumbria and Cymru/Wales were all united in their frustrations.
This isn't a fringe concern. It's a widespread, deeply felt issue that cuts across geography, operator type, and age group. Drivers in urban and rural areas alike are experiencing the impact of cross-border activity — whether through lost work, inconsistent enforcement, or feeling that the rules they follow aren’t being fairly applied to all.
The numbers are clear: for a large portion of the industry, the current licensing system no longer reflects the way modern taxi and private hire work is done.
Why Cross-Border Work Isn’t Going Away
Cross-border licensing isn’t a result of drivers bending the rules — it’s a natural outcome of how the rules are currently written.
As it stands, a private hire driver licensed in one local authority can operate in other areas, as long as the operator and vehicle are also licensed in the same licensing district. This flexibility was originally designed to support passenger choice and economic opportunity — and in many ways, it still does.
For some drivers, cross-border work offers access to more bookings or better fares. For operators, it can help meet demand during peak times or in areas with fewer locally licensed drivers. And for passengers, it can mean faster pick-ups and more options.
But the model wasn’t built with today’s app-driven environment in mind. That’s led to a growing disconnect between where a driver is licensed and where they actually work — and with it, rising concerns about enforcement, vehicle standards and fairness.
Rather than being a failure of individual authorities, this is a structural issue — one that needs clearer guidance, greater consistency, and better data sharing between councils.
The Regulatory Disconnect
The core challenge with cross-border licensing isn’t that the rules are being broken. It’s that the rules don’t reflect how the industry operates today.
Licensing is still handled at the local level, with each authority setting its own vehicle requirements, driver standards, fees, and enforcement policies. But the nature of the job has changed. App-based bookings, regional travel, and multi-authority operator models mean many drivers now work well beyond the boundaries of the council that licensed them.
This creates problems on all sides. Local authorities struggle to monitor and enforce standards for drivers licensed elsewhere. Operators face confusion over differing compliance requirements. And licensed drivers, especially those working to higher local standards, feel increasingly frustrated when those standards aren’t being applied consistently across the board.
Several proposals have been made to tackle this, including greater data sharing between councils, standardised minimum licensing criteria, and even the introduction of a national enforcement body. The 2024 survey highlighted growing support for models like the Button Plan, which would see oversight and enforcement managed through a more centralised framework, while still giving local authorities control over service levels.
It’s a delicate balance but one that needs to be struck if the sector is going to remain safe, competitive and fair.