Why are so many taxis in Heywood licensed in Wolverhampton and other areas?

Residents across Heywood have increasingly been asking the same question: why are so many taxis driving around the town registered in Wolverhampton, Knowsley and other places?

For many people, the sight of private hire vehicles displaying licences issued by councils hundreds of miles away raises concerns about who regulates them, whether they are operating legally and who is responsible if something goes wrong.

The issue has become controversial across England, with local authorities, taxi trade representatives and residents questioning whether the current licensing system gives councils enough control over the vehicles regularly working in their communities.

Why is it controversial?

The debate centres on cross-border licensing.

Since changes introduced under the Deregulation Act 2015, private hire vehicles are no longer expected to work primarily within the area that licensed them. As a result, a driver licensed by Wolverhampton City Council can legally spend most of the working day carrying passengers in Greater Manchester, provided the vehicle and driver comply with the law governing private hire bookings.

Critics argue that the system has weakened local oversight. Drivers may work almost exclusively in Greater Manchester despite being licensed by an authority many miles away, while local councils have less direct control over drivers they did not licence themselves.

Residents may also be unsure which authority they should contact if they wish to make a complaint. Enforcement can become more complicated when several licensing authorities are involved, while different councils may apply different licensing policies and standards.

These concerns have been raised by local authorities across England for several years, with many calling on the Government to reform private hire legislation and give councils greater control over vehicles operating regularly within their boundaries.

Does that mean these vehicles are operating illegally?

No. Although the system is controversial, simply seeing a vehicle licensed in Wolverhampton, Knowsley or another authority driving around Heywood does not mean it is breaking the law.

Private hire licensing works differently from the licensing of traditional taxis.

Unlike a hackney carriage, which can be hailed in the street or wait on an official taxi rank, a private hire vehicle must be pre-booked through a licensed private hire operator before the journey begins.

A Wolverhampton-licensed vehicle seen driving through Heywood could lawfully be travelling to collect a passenger who has already booked, dropping off a customer, waiting for its next booking through an operator or app, or returning from a previous fare.

The licence plate alone does not indicate whether the vehicle is acting lawfully.

When would it become an offence?

The law is much clearer if a private hire vehicle accepts work without a booking.

A private hire driver cannot legally accept passengers who flag the vehicle down in the street, wait on designated taxi ranks or carry passengers without a booking that has first been accepted by a licensed private hire operator.

Those activities are generally reserved for licensed hackney carriage taxis.

If residents witness a private hire vehicle picking up passengers without a booking, licensing officers can investigate whether an offence has been committed.

Who is responsible for enforcement?

One reason the issue generates debate is that responsibility can involve several organisations.

The council that issued the driver's licence retains important regulatory powers and can investigate complaints or suspend and revoke licences where appropriate.

Greater Manchester Police can deal with suspected criminal offences, while local licensing officers may carry out roadside inspections and joint enforcement operations with other authorities.

Many licensing authorities now share intelligence and work together to improve enforcement across council boundaries.

Why Wolverhampton?

Wolverhampton has become one of the country's largest private hire licensing authorities.

Over recent years it has processed applications from drivers across England, meaning many vehicles operating in towns and cities far from the West Midlands legitimately display Wolverhampton licence plates.

The same principle applies to vehicles licensed by authorities such as Knowsley and other councils outside Greater Manchester.

The bigger debate

The growing number of vehicles displaying out-of-area licences has become a national political issue.

Supporters of the current system argue that it provides flexibility for drivers, supports competition and allows passengers to access transport more easily, particularly through app-based booking services.

Critics believe councils should have greater powers over vehicles that spend most of their time working within their communities, regardless of where those vehicles and drivers were originally licensed.

Successive governments have considered reforms to taxi and private hire legislation, but cross-border private hire work remains lawful under the current framework.

What should residents know?

For anyone wondering why so many vehicles in Heywood display Wolverhampton, Knowsley or other out-of-area licence plates, the answer is that the law allows it.

Their presence alone is not evidence of illegal activity.

The important legal question is not where the vehicle is licensed, but whether it is operating as a genuine private hire vehicle, with every journey properly pre-booked through a licensed operator.

Where there is evidence that a private hire vehicle is accepting passengers without bookings or otherwise breaking licensing rules, those concerns can be investigated by the relevant licensing authority and, where appropriate, the police.