Midlands MPs want taxi ‘loophole’ ended after drivers found with licenses from Wolverhampton council

Baggy Shanker and Catherine Atkinson are in support of Government proposals to tighten taxi licensing rules after calling for vital improvements in Derby and beyond.

A Freedom of Information request showed that almost 2,000 taxi drivers living and working in Derby were licensed with City of Wolverhampton Council – amid claims “out-of-town licences are easier and cheaper”.

Drivers can get licensed with another authority which may use different tests, regulations and fees compared to the local authority boundary for which they are working in.

This allows drivers more freedom to work but this also triggers several issues.

It means, for example, Derby City Council is not able to test, regulate or carry out enforcement on vehicles licensed elsewhere – potentially leading to safety concerns and it being powerless to tackle.

There are also concerns that this makes the licensing process “unfair” for drivers who act in good faith to ensure high standards set locally are met.

The system also means “loophole” drivers are potentially taking trade away from those who are home licensed.

The government is proposing a change in legislation to significantly reduce the number of licensed authorities for taxi licensing. The reduction would limit taxi licensing control to only authorities who manage local transport planning – such as county councils and city councils.

It is hoped this would also cut the number of boundaries between areas and licensees would have fewer opportunities to seek out less stringent licensing rules.

This is in addition to the planned introduction of tougher national minimum standards for taxi taxi licensing, which would see all drivers, vehicles and operators subject to robust checks and requirements on safety and accessibility.

Both Mr Shanker and Ms Atkinson have lobbied in parliament for changes after discussions with taxi drivers and passengers across the city.

Mr Shanker, Derby South MP said: “The loophole opened up by the Conservative Government in 2015 allows vehicles to be licensed in one area while operating mainly in another, creating unacceptable gaps in oversight and making enforcement harder.

“At the end of the day, people want a system they can trust. Passengers want to feel safe, drivers want a fair deal, and both need proper checks, strong standards and rules that are actually enforced. The loopholes need closing, and I’m pleased the Government is taking action to fix the flaws left in the system.”

Derby North MP Ms Atkinson said: “When I met with Derby taxi drivers, what came across clearly was that they want a system that is safe, fair and reliable for everyone.

“Passengers need confidence in the vehicles they are using, and drivers want to know that high standards apply across the board. That is why I raised the issue in Parliament last year and why I was reassured to hear that the government is working to close the previous government’s loopholes in strengthened enforcement and consistently high standards.”