Only 813 of more than 21,000 taxi and private hire vehicle drivers licensed in Wolverhampton in the last year live within the council area.
A freedom of information request by news website Taxi Point found that of 21,188 drivers licensed in Wolverhampton between April 2023 and March this year, 20,375 – just over 96% – lived outside the city.
Since 2015, drivers in England and Wales have been able to register in one authority area but operate in another.
Taxi Point said inconsistency in regulatory standards could lead to a ‘race to the bottom’ where drivers are able choose the least stringent licensing authority.
But Wolverhampton City Council said many drivers had chosen to be licensed by the authority due to its ‘efficient, yet rigorous, licensing process’.
Wolverhampton also said it required drivers to attend in-person training and complete a ‘strict’ assessment.
In January 2023, it was reported that Wolverhampton City Council registered almost a third of England’s taxi drivers and had to take on new staff to manage demand.
Transport for Greater Manchester has argued for a change in law so that taxis and private hire vehicles operating within the area are licensed there.
Greater Manchester also sought powers to restrict ‘out of area’ operation during negotiations on its trailblazer devolution deal, but did not get agreement from the Government.
