Taxi and private hire car licensing: guidance - third edition

Chapter 5 – vehicles

Vehicle Specification

5.1 The legislation gives local licensing authorities a wide range of discretion over the types of vehicle that they can licence as taxis or private hire cars. Some authorities have adopted criteria as to vehicle specification that in practice can only be met by purpose-built vehicles but the majority licence a range of vehicles.

5.2 While purpose-built vehicles are amongst those which a licensing authority could be expected to licence, licensing authorities should be cautious about specifying only purpose-built taxis, with the strict constraint on supply that this implies.

5.3 Some licensing authorities operate a policy of specifying as many different types of vehicle as possible. Indeed such authorities might also consider a policy that allowed the taxi/private hire car trade to propose vehicles of their own choice that met a range of general criteria as to specification set by the licensing authority. Such an approach could provide greater flexibility in allowing new vehicle types to be considered.

5.4 See also the section in this chapter regarding Environmental Considerations.

Imported vehicles: type approval

5.5 It may be that from time to time a licensing authority will be asked to licence a taxi or private hire car that has been imported independently (by somebody other than the manufacturer). Such a vehicle might meet the licensing authority's criteria for licensing, but the licensing authority may nonetheless be uncertain about the wider rules for foreign vehicles being used in the UK. Such vehicles will be subject to the 'type approval' rules. The current acceptable options for vehicle registration include EU type approval and two forms of type approval that have been introduced since Brexit: UK(NI) type approval and GB type approval, which were introduced on 1 January 2023.

5.6 For an overview on type approval please see the Vehicle Approval pages on the UK Government website. For more detailed information please refer to the website of the Vehicle Certification Agency and the Type Approval and What is Type Approval? pages in particular.

Vehicle Testing

5.7 There is considerable variation between local licensing authorities on vehicle testing, including the related question of age limits. The following can be seen as best practice:

• Frequency of Tests. The legal requirement for taxis requires that they should be subject to an MOT test or its equivalent one year after first registration and annually thereafter. For private hire cars annual MOT testing should commence after the vehicle is three years old. Notwithstanding MOT requirements, authorities generally undertake inspection of taxis and private hire cars at first licensing and annually or more frequently thereafter. This approach is considered best practice in the interests of public safety. Annual testing for licensed vehicles regardless of age is considered best practice although more frequent testing may be appropriate for older vehicles (see 'age limits' below). Licensing authorities may wish to note that a review carried out by the National Society for Cleaner Air in 2005 found that taxis were more likely than other vehicles to fail an emissions test. This finding, perhaps suggests that emissions testing should be carried out on an ad hoc basis and more frequently than the full vehicle test.
• Criteria for Tests. Similarly, for mechanical matters it seems appropriate to apply the same criteria as those for the MOT test to taxis and private hire cars. The MOT test on vehicles first used after 31 March 1987 includes checking of all seat belts. However, taxis and private hire cars provide a service to the public, so it is also appropriate to set criteria for the internal condition of the vehicle, requiring for example the internal passenger accommodation, upholstery and fittings to be maintained in a serviceable condition. Further advice and details of publications about MOT testing can be found on the Driver & Vehicle Standards Agency website.
• Age Limits. The setting of an age limit beyond which a licensing authority will not licence vehicles is somewhat arbitrary and disproportionate particularly as it is perfectly possible for a well-maintained older vehicle to be in good condition. A greater frequency of testing may, however, be appropriate for older vehicles - for example, twice-yearly tests for vehicles more than five years old.
• Number of Testing Stations. There is sometimes criticism that local licensing authorities provide only one testing centre for their area (which may be geographically extensive). It is good practice for licensing authorities to consider having more than one testing station. There could be advantage in contracting out the testing work, and to different garages. In that way the licensing authority can benefit from competition in costs. The Driver & Vehicle Standards Agency - may be able to assist where there are local difficulties in provision of testing stations.

Security

5.8 Licensing authorities should actively promote and facilitate good links between the taxi and private hire car trades and the local police force, including active participation in any crime reduction initiatives.

5.9 The owners and drivers of vehicles will often want to install security measures to protect the driver. Licensing authorities may consider that this is a matter best left to the judgement of the owners and drivers themselves. However, it is recommended practice for licensing authorities to consider sympathetically, or indeed actively encourage, their installation.

5.10 Security measures could include a screen between driver and passengers. Partitions or safety screens provide a physical barrier between drivers and passengers in the vehicle. They are commonly installed as a safety feature to protect the driver from physical attacks. Such screens can also be used as a way of providing physical separation between drivers and passengers in order to reduce the transmission of viruses. Decisions on any requirements relating to the installation of safety screens ultimately rest with local licensing authorities.

5.11 It is recommended practice for local licensing authorities to require taxi or private hire car licence holders to advise the licensing authority of their plan to install a safety screen within the licensed vehicle. Before a screen is installed within a licensed vehicle it is recommended practice for local licensing authorities to seek proof from the taxi or private hire car licence holder that the relevant insurer has been contacted about the proposed installation and that the insurer has confirmed in writing that the necessary insurance would be unaffected by this installation. In addition, it is recommended practice for licensing authorities to seek confirmation from the taxi or private hire car licence holder that the proposed screen complies with the specification set out in Guidance on Partition Screens in Taxi and Private Hire Cars, published July 2021. That Guidance can be viewed at Annex C.

5.12 In respect of partition screens only, the guidance at Annex C supersedes previous guidance published in August 2020 by the Local Authority Environmental Health and Trading Standards Expert Officers' Group. The licensing authority may consider the installation of a screen to be a material change to the licence and require to be notified of the screen installation formally in terms of Paragraph 9 of Schedule 1 to the Civic Government (Scotland) Act 1982. It is however, recognised that local licensing authorities may have different requirements for the installation of screens within a licensed taxi or private hire car, some may require the licensed vehicle to undergo an additional inspection, so it is recommended that licensing authorities provide a note of its requirements on its webpage to ensure licence holders are aware of these.

5.13 Security measures could also include CCTV. Information Commissioner’s Office Guidance on video surveillance (including CCTV) will be helpful for licence holders making such a decision.

5.14 Installation of CCTV in taxis and private hire cars may offer a degree of security in terms of safety of both passengers and drivers alike. It could also prove a useful tool in corroboration in cases of fare disputes, vandalism and other anti-social or criminal behaviour committed within the vehicle. Licensing authorities in assessing the suitability of CCTV equipment must be aware of any responsibilities for themselves and/or the drivers and operators of the CCTV systems under UK General Data Protection Regulation ("UK GDPR") and the Data Protection Act 2018.

5.15 For the purposes of the installation and use of CCTV systems in taxis and private hire cars, the "data controller" will be the person who makes the decision to install CCTV, i.e. the holder of the taxi or private hire car licence and not the driver. The Information Commissioner's Office is a helpful source of information and advice. Where CCTV systems are installed in taxis and private hire vehicle, operators should ensure that they comply with the Information Commissioner's Office Guidance on video surveillance (including CCTV). Images recorded on such systems are personal data and their processing is subject to the provisions of the Data Protection Act 2018. The Scottish Government has also produced a separate CCTV Strategy for Scotland. A National Strategy for Public Space CCTV in Scotland provides a common set of principles that operators of public space CCTV systems in Scotland should be guided by. The principles aim to ensure that these systems are operated fairly and lawfully.

5.16 Care should be taken that any security measures within the vehicle do not impede a disabled passenger's ability to communicate with the driver.

5.17 Caution is also required if, for any reason, CCTV is operational continuously. It would, for example, mean a camera could be operating when the vehicle is being used privately by the driver. The Information Commissioner's Office view on this matter is that, in most cases, this is unlikely to be fair and lawful processing of personal data.

5.18 The Information Commissioner's Office CCTV Guidance (link above) also highlights the need to ensure that "your business has established a process to recognise and respond to individuals or organisations making requests for copies of the images on your CCTV footage". Further information about a person's 'right of access' to such information is also available on the Information Commissioner's Office website.

5.19 As an example of best practice the Scottish Government would highlight the policy document issued by Glasgow City Council, that sets out the Licensing Authority's policy on the installation and use of CCTV systems in licensed taxis and private hire cars. The policy document can be viewed at Annex A.

5.20 Local licensing authorities may wish to consider adopting a similar style of policy document.

Vehicle Identification

5.21 Members of the public can be unaware of the fact that private hire cars and taxis operate differently, that private hire cars are not available for immediate hire and must be pre-booked. It is important, therefore, that it is easy to distinguish between the two types of vehicle.

5.22 Section 14 of the 1982 Act prohibits the display on, or in, a private hire car of any feature which could suggest that the vehicle is available for hire as a taxi. The display of rooftop signage on private hire cars may lead to confusion and we suggest as best practice the inclusion of a condition of licence for private hire cars precluding the display of any type of rooftop signage on such vehicles. Condition 14 of the model conditions set out in Annex B to Scottish Development Department Circular 25/1986 refers.

5.23 In addition to the specified local authority licence plate or disc identifying the vehicle as a private hire car some clearer identification is best practice. This is for two reasons: firstly, to ensure a more positive statement that the vehicle cannot be hired immediately through the driver; and secondly because it is reasonable, and in the interests of the travelling public, for a private hire car operator to be able to state on the vehicle the contact details for hiring. In this regard authorities might consider introduction of a licence condition which requires a sign on the vehicle in a specified form. This will often be a sign of a specified size and shape which identifies the operator (with a telephone number for bookings) and the local licensing authority, and which also has some words such as 'pre-booked only'. This approach identifies the vehicle as private hire, helps to avoid confusion with a taxi and gives useful information to the public wishing to make a booking.

Environmental considerations

5.24 A broad range of environmental issues apply, including noise, air quality, greenhouse gas emissions, and resource efficiency. Local licensing authorities should consider how far their vehicle licensing policies can and should support both local and national environmental policies that have been adopted. This should involve closer communication between local transport and environmental committees and consideration of Scottish Net Zero targets.

5.25 As environmental impacts can cross local authority boundaries, local licensing authorities may also find it helpful to consult with licensing authorities in surrounding areas with a view to aligning environmental policies and practices where possible.

5.26 Provision of refuelling infrastructure that supports environmental objectives should be considered. In Dundee, electric rapid charge points have been deployed by the local authority in locations that are convenient for the local taxi and private hire trade to use. This has encouraged the uptake of electric vehicles in the city and reduced dependence on diesel fuel. Supporting the uptake of alternative liquid fuels such as Hydrogen, LPG and biofuels could also help to achieve environmental goals where consideration is given for key user groups such as taxi and private hire vehicles.

5.27 Authorities may also wish to consider in any review of their list of approved vehicles for licensing purposes the availability of increasing numbers of alternatively fuelled vehicles on the market. Authorities in considering approval of environmentally friendly vehicles will doubtless have due regard to their obligation to be satisfied as to a vehicle's suitability for licensing as a taxi or private hire car in terms of type, size and design and that it is comfortable and safe for use as a taxi or private hire car (section 10 of the 1982 Act). Such considerations should form part of any wider environmental policy or strategy.

5.28 Consideration should be given where local restrictions on vehicle age apply. For some vehicles using a cleaner fuel vehicle could require greater capital investment. Age limits could undermine this business case, and exemptions should be considered. This has been adopted by City of Edinburgh Council where up to an additional 4 years can be applied beyond the usual licensing age limit for alternatively fuelled vehicles such as LPG and electric taxis.

5.29 Aligning polices with the broader range of fuel types could help to enable choice in the market. Historically, minimum engine capacity (in cc) has been used to set vehicle standards. An alternative method is to use a 'power to weight' ratio which can normalise sufficient power across different fuel types.

5.30 Local authorities may also wish to consider promotion of cleaner fuels and/or training for drivers in environmentally friendly driving as a means to reduce both environmental impacts and driver costs. Hosting local infrastructure, and looking for opportunities to share infrastructure with e.g. local authority fleets or depots is recommended. Local authorities can also support and raise awareness of incentives or grants that are available.

5.31 An increasing number of Scottish local authorities are adopting environmental policies with regard to taxi and private hire car licensing in their areas. Glasgow, Edinburgh, Dundee and Aberdeen have introduced Low Emission Zones which set an emission standard for vehicle entry of Euro 4 or better for petrol/gas vehicles and Euro 6 or better for diesel vehicles to reduce emissions. Authorities should consider giving sufficient notice for any adoption of emission standards and consideration for what is achievable with the rate of turnover within the existing fleet. Good dialogue with the trade is recommended to understand the context of any proposed environmental initiative.

Exemptions from licensing

5.32 Section 22 of the 1982 Act currently provides that the licensing requirements do not apply to vehicles used for bringing passengers or goods within and taking them out of an area in respect of which the vehicle is not licensed as a taxi or a private hire car in pursuance of a contract for the hire of the vehicle made outside the area if the vehicle is not made available for hire within the area, vehicles being used in connection with a funeral or wedding, nor does it apply to any vehicle while it is being used for carrying passengers for its exclusive hire for a period of not less than 24 hours. This is often referred to as the contract exemption.

5.33 This exemption therefore allows drivers and vehicles being used exclusively for contract work to fall out with the licensing regime.

5.34 This is on the assumption that the person/ body contracting the work will be responsible for the scrutiny of the person/ company fulfilling the contract. The Scottish Government would recommend to the person/ body contracting the work that the use of unlicensed individuals or firms to provide transport services, particularly to vulnerable groups, should be carefully considered. Any tendering process and final contract must clearly be compliant with relevant legislation (i.e. registration with Protecting Vulnerable Groups scheme where appropriate) but should also build in time and capacity to effectively establish the safety and suitability of the drivers and vehicles. Considering the wide range of factors that this covers (road worthiness, accessibility requirements, criminal records checks, driver training etc), the use of licensed drivers and vehicles may be more efficient.

5.35 In response to concerns that had been raised by stakeholders that the existence of the contract exemption was leading to abuse by people undertaking private hire type activities, but claiming that these came within the contract exemption, the 2015 Act made provisions for the removal of the current exemption provided for at section 22(1)(c) of the 1982 Act, for a vehicle while it is being used for carrying passengers for its exclusive hire for a period of not less than 24 hours. The Act does not amend the current exemption in relation to funerals or weddings.

5.36 When brought into force, this will bring vehicles being used in such a manner into the licensing regime for taxis and private hire cars. Please note however that the contract exemption remains in place at present.

5.37 The policy objective for the removal of the contract exemption is to preserve and improve the safety of the travelling public by widening the scope and tightening the regulation of the licensing regime. In particular, by addressing concerns that legitimate trade is being unfairly challenged by some businesses circumventing or abusing the licensing regime, and also improving compliance within the regime.

5.38 The Scottish Government recognises that there are a wide variety of businesses and activities that might inadvertently be brought into taxis and private hire car licensing by removing the contract exemption, and that preparatory work is required and underway through engagement with licensing stakeholders.

5.39 The Scottish Government will undertake additional work to better understand existing business operations, for example through stakeholder engagement as alluded to above and formal consultation before removing the existing contract exemption.

Licensing of stretch limousines and other special events vehicles

5.40 Special events vehicles (stretch limousines, decommissioned emergency service vehicles etc.) typically booked for party occasions have appeared on our roads in increasing numbers over recent years. Demonstrating a clear public demand for the special service that they provide.

5.41 Concern has been expressed that some such vehicles may be operating out with any specific licensing regime. These vehicles and their drivers may not therefore have been subject to appropriate scrutiny either under the private hire car or public service vehicle licensing arrangements (the latter applies primarily to vehicles that have more than 8 passenger seats. Responsibility for this legislation is reserved to the UK Government).

5.42 Section 23 of the 1982 Act defines 'hire car' in the following terms:

"hire car" means a motor vehicle with a driver (other than a vehicle being a public service vehicle within the meaning of section 1(1)(a) of the Public Passenger Vehicles Act 1981) (the 1981 Act) which is, with a view to profit, available for hire by the public for personal conveyance.

5.43 Section 7 of the 1982 Act provides that any person who, without reasonable excuse does anything for which a licence is required under Part II of the Act (which includes sections 10-23) without having such a licence, shall be guilty of an offence.

5.44 In terms of section 10 of the 1982 Act, licensing authorities have discretion over the types of vehicles that they licence as private hire cars. We understand that some authorities licence limousines, that some do not and that few if any authorities licence other special events vehicles. In some instances, therefore, it is currently not possible for an operator of a special events vehicle to secure a private hire car licence. The view the licensing authority takes in relation to the licensing of special events vehicles is a separate issue from whether a licence is required to operate or drive such a vehicle.

5.45 The Scottish Government takes the view that a blanket policy to refuse to licence these vehicles simply as a matter of principle presents an unacceptable safety risk to the travelling public. Public safety considerations are best served by the adoption of policies that ensure through the licensing process for the vetting of operators and drivers and inspection of vehicles.

5.46 In the light of the above, we would encourage licensing authorities:

• to consider applications on their individual merits having regard to the above advice.
• to adopt, in liaison with the police, a proactive approach, to the question of the operation of vehicles without a licence required under the 1982 Act.

5.47 Licensing authorities in considering any variance in regard to its technical specification of vehicle for licensing as a private hire car, perhaps in recognition of the particular nature of the service provided by special event type vehicles, will wish to ensure that the principles of section 10(3A) are not compromised in any way.

5.48 It should be emphasised that the above advice applies to vehicles with capacity up to 8 passenger seats. Vehicles with greater seating capacity may fall to be considered under public service vehicle legislation.

5.49 In the exercise of their discretion as to the suitability of a particular vehicle for licensing as a private hire car, authorities might wish to consider whether policies for example setting age limits on vehicles and/or excluding left hand drive are not unduly restrictive.

5.50 In the past imported stretched limousines were checked for compliance with British regulations under the Single Vehicle Approval inspection regime, prior to registration. This was replaced by the Individual Vehicle Approval (IVA) scheme. The IVA test verifies that the converted vehicle is built to certain safety and environmental standards. A licensing authority may wish to request sight of the IVA certificate to ensure that the vehicle was tested by the Driver & Vehicle Standards Agency before being registered and licensed (taxed). This can be done, either by checking the Registration Certificate (V5C) of the vehicle, which may refer to IVA under the 'Special Note' section, or by writing to the Driver & Vehicle Standards Agency providing details of the vehicle make/model, registration number and VIN number.

5.51 Some licensing authorities have reported difficulty due to the size of some vehicles precluding them being properly tested in conventional MOT garages. If there is not a suitable MOT testing station in the area we understand that it may be possible to arrange to test the vehicle at one of the Driver & Vehicle Standards Agency approved test stations.

Quantity restrictions of taxi licences

5.52 The legal provision on quantity restrictions for taxis is set out in section 10(3) of the 1982 Act. This provides that:

…the grant of a taxi licence may be refused by a licensing authority for the purpose of limiting the number of taxis in respect of which licences are granted by them if, but only if, they are satisfied that there is no significant demand for the services of taxis in their area which is unmet.

5.53 Local licensing authorities will be aware that, in the event of a challenge to a decision to refuse a licence, the licensing authority concerned would be required to establish to the satisfaction of the court that it had first satisfied itself that there was no such significant unmet demand.

5.54 The Scottish Government is of the view that decisions as to the case for limiting taxi licences should remain a matter for licensing authorities in the light of local circumstances. Licensing authorities that presently restrict numbers of taxi licences are, however, encouraged to periodically review this policy and to examine the wider policy direction.

5.55 Licensing authorities in reviewing their policy with regard to quantity restrictions on taxi licences should consider whether any restriction presently in place should continue. The matter should be approached in terms of the interests of taxi users. What benefit is achieved for them by the continuation of controls and how might they benefit if the controls were removed? Is there evidence that removal of the controls would result in a clear and unambiguous deterioration in the amount or quality of taxi service provision? Authorities in assessing the case for quantity restrictions will wish also to have regard to the availability of an appropriate supply of accessible vehicles within the hire car fleet such as to meet the needs of passengers with a disability.

5.56 Authorities may find the information in Annex B helpful. That Annex sets out a number of questions which may be helpful to licensing authorities in any review of policy in regard to the quantity control of taxi licences.

5.57 The Scottish Government agrees that the question of the restriction of licences should be left to the discretion of licensing authorities. However, there is a need for review of the frequency and component parts of the surveys used by licensing authorities to measure unmet demand. In regard to frequency, licensing authorities should carry out a survey sufficiently frequently to be able to respond to any challenge to the satisfaction of a court.

5.58 Some key points which authorities should consider are:

• The length of time that would-be customers have to wait at ranks. However, this alone is an inadequate indicator of demand.
• Waiting times for street hailing's and for telephone bookings. But waiting times at ranks or elsewhere do not in themselves satisfactorily resolve the question of unmet demand.
• Latent demand, for example people who have responded to long waiting times by not even trying to travel by taxi. This can be assessed by surveys of people who do not use taxis, perhaps using stated preference survey techniques.
• Peaked demand. It is sometimes argued that delays associated only with peaks in demand (such as morning and evening rush hours, or pub closing times) are not 'significant'. The Scottish Government does not share that view. Since the peaks in demand are by definition the most popular times for consumers to use taxis, unmet demand at these times should not be ignored. Local authorities should consider when the peaks occur and who is being disadvantaged through restrictions on provision of taxi services.
• Consultation. As well as statistical surveys, assessment of quantity restrictions should include consultation with all those concerned, including user groups, the police, local businesses (e.g. hotels, pubs and clubs and visitor attractions) and providers of other transport modes (such as train operators who want taxis available to take passengers to and from stations).
• Publication. All the evidence gathered in a survey should be published, together with an explanation of what conclusions have been drawn from it and why. If quantity restrictions are to be continued, their benefits to consumers and the reason for the particular level at which the number is set should be explained.
• Financing of surveys. It is not good practice for surveys to be paid for by the local taxi trade (except through general revenues from licence fees). To do so can call into question the impartiality and objectivity of the survey process.

Quantity restrictions of private hire car licences

5.59 The legal provisions on quantity restrictions for private hire cars are set out in sections 10(3A), 10(3B) and 10(3C) of the 1982 Act. These provisions provide that:

10(3A) without prejudice to paragraph 5 of schedule 1 [to this Act] the grant of a private hire car licence may be refused by a licensing authority if, but only if, they are satisfied that there is (or, as a result of granting the licence, would be) overprovision of private hire car services in the locality (or localities) in their area in which the private hire car is to operate.

10(3B) It is for the licensing authority to determine the localities within the area for the purposes of subsection (3A) and in doing so the authority may determine that the whole of their area is a locality.

10(3C) In satisfying themselves as to whether there would be overprovision for the purposes of subsection (3A) in any locality, the licensing authority must have regard to –

(a) The number of private hire cars operating in the locality, and

(b) The demand for private hire car services in the locality.

5.60 The 2015 Act introduced these provisions into the 1982 Act which gave licensing authorities the discretionary power to refuse to grant private hire car licences on the grounds of overprovision. This power came in to force on 1 May 2017 and only applies to grant applications. It does not apply to the renewal of existing private hire car licences.

5.61 Licensing authorities, in considering whether to use this ground of refusal, should take into account the Scottish Government Private Hire Car Licensing: Guidance on Power to Refuse on Grounds on Overprovision, dated 24 September 2019.

5.62 As noted in the above guidance, it is for individual licensing authorities to decide whether they wish to undertake an overprovision assessment of private hire cars. In considering this matter licensing authorities may wish to take into account factors such as:

• whether they already restrict taxi vehicle numbers
• views from the trade, both taxis and private hire car businesses
• overall trends in vehicle numbers, are private hire car vehicle numbers increasing?
• churn, with licence holders failing to renew vehicle licences.

5.63 The Scottish Government recommends that licensing authorities who decide that they wish to use the overprovision power should develop and consult on a formal overprovision policy.

5.64 As an example, the Scottish Government would highlight the overprovision policy for the grant of private hire car licences introduced by Glasgow City Council in April 2019.

Return of Plates - Section 10(6)

5.65 The Scottish Government is aware that some licensing authorities have experienced difficulties over compliance with the return of taxi and private hire car licence plates required under terms of Section 10(6) of the 1982 Act.

5.66 In order to address concerns over non-compliance licensing authorities can use their powers under Schedule 1 to insert an expiry date on licence plates at time of issue.

5.67 The Scottish Government would encourage licensing authorities to consider the inclusion of an expiry date or car registration number on licence plates at time of issue to discourage non-compliance and assist enforcement personnel in identifying any cases of inappropriate use.