Council leaders have voiced fears about taxi ‘loopholes’ enabling drivers to operate in areas miles away from licensing authorities.

At South Kesteven District Council’s recent Licensing Committee, Cllr Ashley Baxter pointed out that the region is ‘suffering a deluge of vehicles’ licensed by other councils, creating ‘unfair competition’ for local drivers.

According to Cllr Baxter, current licensing policies see that ‘drivers who would not qualify for a licence from South Kesteven or might even have had a licence refused or revoked’ by the council are still permitted to trade in the area.

Referencing the estimated 35,000 drivers licensed by Wolverhampton City Council, compared to South Kesteven’s 350, Cllr Baxter argued the licensing ‘loophole’ threatens the council’s ability to monitor the operational standards of drivers in the area.

Birmingham councillors have expressed similar concerns about Wolverhampton’s licensing rules, which enable drivers to apply for licences online and operate in areas they have no local connection to, reported Birmingham Live.

Birmingham council leaders reportedly emphasised the safeguarding issues posed by licensing loopholes and advocated for the ‘rigorous standards’ recommended in the Casey grooming gangs report to be implemented to protect younger passengers.

To resolve the ‘cross-border licensing’ issue, Cllr Baxter confirmed he has written to Local Transport Minister, Simon Lightwood MP, calling for a ‘national statutory policy or legislation’ that benefits both drivers and passengers through the ‘provision of safe, accessible, available, and affordable services’.

A spokesperson for City of Wolverhampton Council said, ‘it is illegal for the council to refuse applicants a taxi licence on the basis of where they live’, or ‘for licensing authorities to impose a limit on the number of private hire licences they issue.’

The spokesperson added that safeguarding is the council’s ‘number one priority in taxi licensing’, confirming its use of digital initiatives such as daily driver DBS checks and smartphone-enabled authentication methods which allow passengers to verify a driver’s licence and identity before embarking on a trip.