A Fare Shake: Reforming Taxis for the 21st Century

The Adam Smith Institute’s latest paper, written by Maxwell Marlow, outlines how the UK can improve regulation of taxis and private hire vehicles.

• The Private Hire Vehicles Act (1998) and Local Government (Miscellaneous Provisions) Act (1976) should be overhauled to provide a clear regulatory framework for modern ride-hailing services. New legislation should be brought forward;

• Licensure for taxis, Private Hire Vehicles (PHVs), and ride-sourcing drivers should be reviewed to allow for street-hailing across platforms. A single-tier of licensing should exist to create an equal market which is truly dynamic in function;

• The Knowledge, and other topographical tests, should be removed as requirements with the advent of regularly-updated GPS and traffic-mapping systems;

• The Government should review and remove a number of surplus regulations regarding Taxi and PHV operation due to a ‘regulatory overload’ causing drivers to leave the profession, or not join in the first place;

• Licensing authorities should permit the licensing of ‘paratransit light vehicles’ for cheaper, greener, and higher capacity travel, as a supplement to bus networks;

• The Government could do more to encourage transfer to electric vehicles (EVs) and hybrids by creating a subsidy fund, providing tax incentives, and travel cards for green travel by taxis and PHVs.