Pressure Grows for Reform of Cross-Border Taxi Rules in London

Concerns over cross-border working in the taxi and private hire sector are intensifying in London, with transport leaders calling for changes to legislation to address what they see as a major gap in regulation.

At a recent London Assembly Transport Committee meeting, Transport for London (TfL) Commissioner Andy Lord said the organisation has put forward a compelling case to the Department for Transport, urging tighter controls on where licensed vehicles are permitted to operate.

Current rules allow private hire drivers licensed by one local authority to carry out journeys in another area. In London, this has led to situations where drivers licensed outside the capital are working there on a near full-time basis, without being subject to TfL’s specific licensing requirements.

Lord described the situation as a significant issue for both regulators and the industry, warning that some vehicles operating in London may not meet the same safety or specification standards as those licensed by TfL. He also highlighted concerns that drivers are effectively working in areas where they are not directly regulated.

The issue is not limited to safety. Industry figures argue that the current system creates unfair competition, as London-licensed drivers must meet stricter criteria, including vehicle standards and, for black cab drivers, the rigorous “Knowledge” test. Meanwhile, others can access the same market without meeting those requirements.

TfL believes there is growing support within government for reform. Lord noted that potential changes are being considered as part of wider devolution legislation currently progressing through Parliament, alongside increased focus following recommendations made in the Casey Review.

Deputy Mayor for Transport Seb Dance echoed these concerns, describing cross-border hiring as a serious challenge that complicates efforts to properly regulate the sector. He stressed that addressing the issue is key to shaping the future of the private hire industry.

TfL has made clear it is not aiming to block legitimate journeys that cross boundaries, such as trips starting or ending outside London. Instead, the focus is on preventing drivers from operating predominantly in areas where they are not licensed.

Lord explained that vehicles licensed by other authorities should mainly operate within their own regions, rather than being effectively based in London.

However, introducing new rules presents practical difficulties. Enforcing boundaries and monitoring where drivers are working remain complex issues that policymakers will need to resolve.

The debate also ties into wider concerns about the size of London’s private hire market, which currently exceeds 100,000 licensed vehicles. TfL has warned that continued growth could become unmanageable, but acknowledged that any attempt to limit numbers would be ineffective without first tackling cross-border activity.

Dance reinforced this point, stating that measures such as caps on vehicle numbers would have little impact under the current system, making regulatory reform essential.

Views within the sector remain divided. Some operators argue that cross-border working provides flexibility and helps meet passenger demand, particularly during busy periods or in areas with fewer local drivers. Others, including taxi representatives and local authorities, believe the system undermines accountability and makes effective regulation more difficult.

Critics maintain that oversight should sit with the authority in the area where drivers are operating, ensuring consistent standards and improved safety for passengers.