Taxi Reform | Wales

In March 2023 the Welsh Government published a White Paper concerning reform of Taxi Regulation in Wales.

The Welsh Government recognised in their White Paper that “all around the world the taxi and PHV sector is being transformed by technological advances, particularly through the advent of app-based ride-hailing companies. This transition to a more automated system will continue and the industry needs to be prepared for the changes ahead. Autonomous ‘taxis’ are already being trialled in various locations across the world. It is clear that in the long term, Welsh legislation will need to be capable of addressing the challenges as they emerge. This will include the transition to ‘Mobility As A Service’, where transport is shared and on demand. Nonetheless there are longstanding issues with the current legislative framework around taxi and PHV licensing that need addressing urgently in the interests of public safety, fairness and environmental concerns.”

In respect to the ‘longstanding’ issues, the Welsh Government identified three immediate concerns:

• the inconsistency across Wales in terms of licensing standards;
• the lack of enforcement powers to deal with drivers operating out of area; and,
• the lack of clarity around the distinction between taxis and PHVs and what they are allowed to do.
•  

The Welsh Government invited responses to the draft and received 148 such responses and in September published a summary of the responses.

On Tuesday, 2^nd October 2023 Lee Waters MS, Deputy Minister for Climate Change, who is responsible for this White Paper made a statement to the Senedd confirming that the Welsh Government would take forward plans to introduce a national standard for drivers and empower enforcement officers to take action against drivers who may be licensed out of area , especially when there are concerns for public safety. At present taking enforcement action of this type can only be taken by the ‘home authority’.

Although national standards will not apply in England or Scotland and cross-border journeys between these jurisdictions will continue, the Welsh Government plans to prevent drivers from securing their licences outside of Wales only in order to avoid the new national standards.  How such drivers will be identified and how this will be implemented are yet to be described.

Although the White Paper had not recommended CCTV in taxis to be part of the National Standards, the Welsh Government have seen general support for this measure in the above-mentioned responses.

Also, ‘muti-platforming’ where drivers simultaneously register on multiple platforms and which anecdotal evidence suggests leads drivers to pick-up and then reject rides in favour of more valuable tenders, leaving members of the public frustrated and without transport is a matter of concern.  The Welsh Government does not yet have a proposal for how to address this perceived issue at this time, but this is an example of the modern challenges of an app-based taxi service. 

In respect of reform in England, the last action of the Taxi and private hire reform in England inquiry was an oral evidence session in March 2019 suggesting that the UK Government give such reform a lower priority despite the issues identified in the Welsh Government’s White paper despite the current problems and future challenges being a UK wide issue.