Overview
An Overview of the Transport Committee review
10 October 2025 2 min read
The Department for Transport began an Inquiry into Private Hire Licensing Regulations in July 2025, with a deadline for written evidence set for 8th September 2025. At the time of writing, that review was still ongoing.
What has been recommended to the committee from local authorities?
Many local authorities, MPs, and Manchester Mayor Andy Burnham have called for an end to "Out of Area Operators" (OAO). Currently, standards for private hire drivers are set by local councils, with only guidelines for best practice. This means that the councils with higher standards are being undermined when drivers registered with operators from other councils (with lower standards) are entering the area and are allowed to operate.
Representations to the Transport Committee have called on the government to change the guidelines for councils to be made a statutory obligation. However, many Local Authorities have also called for an A to B, B to A rule (ABBA, for short). This rule would mean that trips would have to start or end within the Borough where the driver is licenced.
Have the operators made representations to the committee?
Predictably, the large operators that rely on "Out of Area" operations (Bolt, Uber, Veezu, Addison Lee) have submitted counter arguments in support of "Out of Area" operating, mostly on the grounds of safety. These operators support statutory national standards, arguing that its enough to curtail the problems and concerns caused by OAO.
What are the implications for drivers?
Whilst its still not decided whether the Transport Committee will recommend the ABBA rule to become law, with the weight of pressure from local authorities, MPS and Mayors, it seems a very real possibility.
The proposed change in operations will have a profound affect on those drivers using ride hailing apps who are operating predominately in areas where those apps are not currently licenced to operate. The proposed change could have significant financial implications if drivers are either forced to work in already saturated areas, or have to migrate their licence to the council where they are operating (which also depend on their operator obtaining the licence for that area).
When might new rules take affect?
At the time of writing, the Transport Committee Inquiry is still taking place. Once the Inquiry is closed a report will be written, with recommendations for any changes to law being made within that report.
Bills, or changes to bills, will then have to be drafted, before going through the parliamentary process. This process can take a few days for emergency laws, or several years for controversial laws, however, a year is the average.
Usually, any changes to the law that would require significant action from an industry would allow time for those changes to be implemented. Therefore, it's likely that these changes won't come into affect for maybe, two years. Although, that is a rough guess.