Council calls for end to taxi licences 'loophole'

Eleanor Maslin and Adam Aiken
BBC News
Getty Images A close-up shot of a lit-up yellow taxi sign on the top of a black cab. It says "TAXI" in bold across it. The background is blurred.Getty Images
Taxis licensed in other areas are operating in Lincolnshire

Calls have been made to close a "loophole" in the law that allows taxis licensed in other areas of the country to operate in Lincolnshire.

South Kesteven District Council said it had seen a "deluge" of Wolverhampton-licensed taxis which had had a "detrimental" impact on local drivers.

It has written to the government calling for an end to out-of-district licensing.

City of Wolverhampton Council said safeguarding was its "number one priority" in taxi licensing and that it was "the first to implement the government's statutory standards and best practice guidance", adding it was not allowed to decline licences based on where the applicant lived.

Licensed taxi drivers are allowed to operate anywhere in England and Wales and are not tied to the district where they got their licence.

Applications made in Wolverhampton are believed to be quicker and cheaper than those made elsewhere.

The issue of out-of-district licences was raised at a recent licensing committee of South Kesteven council.

Concerns included a restriction on the authority's ability to monitor and manage drivers who did not comply with legislation.

Council leader Ashley Baxter has written to local transport minister Simon Lightwood about the issue.

South Kesteven District Council A man with short mousey brown hair in a black blazer and a blue tie with white lines on it and a blue shirt. He is smiling into the camera in the head-and-shoulders shot.South Kesteven District Council
South Kesteven District Council leader Ashley Baxter has requested an end to the "loophole"

He said: "The overall number of taxi and private hire drivers in our district has remained relatively constant in recent years.

"Many survived the significant impact of Covid but now face increasing financial pressure due to unfair competition from drivers licensed by other authorities."

City of Wolverhampton Council reiterated that it was legal for applicants to apply to any licensing authority for a licence.

A spokesman added. "It is illegal for the council to refuse applicants a taxi licence on the basis of where they live.

"It is also illegal for licensing authorities to impose a limit on the number of private hire licences they issue.

"The council does not gain financially from taxi licensing, as the fees are legally ring-fenced for spend only on related activities."

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