English Devolution and Community Empowerment Bill

Debate between Peter Lamb and Elsie Blundell
Elsie Blundell Portrait Mrs Elsie Blundell (Heywood and Middleton North) (Lab)
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I rise to speak to new clause 83, which stands in my name. I thank colleagues for their support for the new clause. I also sincerely thank the Minister and her team for their consistent engagement with me on this landmark piece of legislation—a Bill that will be game-changing for my constituents.

Before I speak to my new clause, which would forge a fairer, safer and better regulated private hire vehicle sector, I want to express my full support for the steps that the Government are taking by introducing national minimum standards. We need to rebuild confidence in a system that so many view as broken. This is about giving local leaders power to decide which drivers operate in their areas, and, most crucially, it is about the safety and wellbeing of passengers and drivers.

Let me deal first with the problem we face. Many Members will have heard from constituents who have raised legitimate concerns that the taxis or private hire vehicles that they see operating in their local areas are actually licensed hundreds of miles away. That is because since 2015 operators have been permitted to contract bookings to another vehicle that could be licensed in a different area. It has coincided with the meteoric rise of national operators such as Uber and Bolt, which are permitted to be licensed in multiple areas. The stark absence of any regulation has led to certain local authorities becoming, as the GMB union has put it,

“a licence factory…creaking at the seams”.

No example underscores that more vividly than the activities of City of Wolverhampton Council. In the first five months of last year alone, the council granted more than 8,500 new taxi licences, which is 30 times more than any other licensing authority in the midlands. This has a real and tangible impact across the whole country. Indeed, in Greater Manchester nearly half of all private hire vehicles are now licensed by local authorities outside its 10 councils, and the city region’s “out of area” figure of more than 12,000 has risen sharply from just under 7,000 in 2023. In my own borough of Rochdale, about 40% of private hire vehicles and taxis are licensed out of area.

This is not just an issue of public perception; it is also about safety and enforcement. For as long as the status quo persists and scores of vehicles are operating out of area, far from the authority that licensed them in the first instance, there will remain a deficit in terms of accountability when incidents take place.

Let me add a caveat by saying, unequivocally, that the vast majority of drivers are law-abiding people. They are integral to our economy and to our society as a whole, and I have been delighted to engage with a great number of them since being elected to this place. However, situations arise in which enforcement becomes necessary, and at present licensing authorities such as my own are unable to take action because of the proliferation of out-of-area operation.

Peter Lamb Portrait Peter Lamb (Crawley) (Lab)
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Does my hon. Friend agree that while it is good news that the Government have now proposed national minimum standards, her new clause represents the other part of the Casey review’s recommendations, without which the House would have failed to act on the licensing requirements specified in the review?

Elsie Blundell Portrait Mrs Blundell
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I truly support and welcome the Government’s commitment to national minimum standards, but I believe that they must be complemented by a restriction on out-of-area operations so that they can be enforced locally where necessary.

At a recent meeting of the Transport Committee, which is currently holding an inquiry on the private hire vehicle sector, we heard from a licensing officer from Blackpool council. When I asked whether his authority was able to keep track of the drivers operating within it, he stated:

“We are now at a stage where provisions on where an operator can operate vehicles do not seem to matter. We are not even in a position where an operator has to have a licence everywhere it operates; it does not.”

He went on to say:

“I know the limitations of my operational enforcement resource…chasing vehicles all over the country is not something we could deal or cope with.”

I know from conversations with Rochdale borough council’s licensing department that those sentiments are shared there, too. Standards are one thing, but without proper means of enforcement, they will not have the maximum impact on public safety.

I will now move to the substance of my new clause 83. Under the new clause, strategic authorities would have the power to require that journeys that start and end there are fulfilled by locally licensed operators. It would give local leaders power and the choice to adopt that as a solution. Considered together, new clause 83 and the Government amendments would encourage drivers to license locally and would ensure that if things go wrong, both drivers and passengers have the confidence that enforcement measures will be swift, considered and legitimate in the eyes of local authorities and local people. If reinforced by implementing national minimum standards, these two changes could revitalise the sector, and give both drivers and passengers the confidence and certainty they deserve.

I believe that there are no Members present today, no corner of society and, indeed, no drivers out there in the sector who believe the system as it stands is working well. It is oversaturated, with a lack of local accountability and an erosion of the ties between drivers and the communities they serve. The private hire and taxi sector is critical to our economy and for filling gaps in the local transport network, but for too long the safety of passengers and the ability of licensing authorities to do their job have been undermined for the sake of a model that is unfit for purpose. We must bring an end to out-of-area licensing and offer the sector the change for which it has been calling out for decades.

The Bill is about granting power to local people to make their own decisions that will change their communities for the better. This is one such a decision—one that we can no longer afford to avoid.