Agenda item

Report of Interim Director for Communities.

John Davis, Taxi Licensing Compliance Manager, presented the report regarding the Hackney Carriage Unmet Demand Survey, and highlighted the following points:

(a)  The Council currently limits the number of hackney carriage vehicle licenses to 420. This report considers the outcome of the Unmet Demand Survey and asks the Committee to consider whether it is appropriate to maintain this limit, change the limit, or remove it. Any proposed changes would prompt a public consultation;

(b)  The first option is to retain the existing restriction at 420, and the second option is to reduce the number of licences issued to 250:

  i.  The benefits of restricting the numbers relate to managing congestion, preventing over-ranking or the formation of unofficial ranks, which would add to air quality issues experienced across the city. A restriction also helps drivers earn a living wage, especially important after may have made significant investments in purchasing compliant vehicles, and may prevent drivers working excessive hours which could affect the safety of the travelling public;

  ii.  The unmet demand survey indicated there is no unmet demand, with around 200 licenses issued. The number of licensed hackney carriages has remained around 200 in recent years due to social changes after Covid-19 and the introduction of the Age and Specification Policy;

  iii.  It is however contrary to the Department for Transport’s guidance and would need to be justified. In cases where vehicle licenses have reached their limit, they could then command a premium, often tens of thousands of pounds, though this is not currently the case in Nottingham as it has not issued all vehicle licences. It would prevent the travelling public from enjoying more competition in the taxi market;

  iv.  If a restriction is maintained, a further unmet demand survey would be required in three years’ time, with current costs in the region of £19,140 which is likely to rise.

(c)  The third option is to remove the numerical restrictions on the number of hackney carriage licences issued:

  i.  This option is in line with best practice guidance. It could potentially provide a better service for customers by increasing competition, and would let market forces dictate the number of hackney carriages without direct intervention, while the Age and Specification Policy continues to indirectly restrict the numbers of hackney carriages;

  ii.  This may be opposed by the taxi trade due to the perception of additional competition – though public safety is the primary licensing test and economic or business considerations are not relevant;

  iii.  There may be concern that the city would become flooded with more vehicles, causing congestion and pollution, though the effect would be counteracted by the Age and Specification Policy. There is a concern that drivers may have to work excessive hours which may affect passenger and driver safety.

In the discussion which followed, and in response to questions from the Committee, the following points were made:

(d)  Committee Members spoke in favour of the second option, to reduce the number of licences issued to 250. Drivers are already having to purchase expensive vehicles to comply with the Age and Specification Policy, and restrictions help them to earn a living;

(e)  There are concerns about pollution and congestion issues in the city which may be exacerbated by removing the restriction, and it was noted that other authorities had been flooding the city with taxis, causing congestion issues and depriving drivers of a reasonable living, prompting drivers to work excessive hours which can be unsafe;

(f)  The proposed reduction would require a consultation, and Committee Members emphasised the importance of ensuring engagement. The consultation would primarily go out to the hackney carriage trade, as the people most affected by any changes, but other stakeholders would be engaged, including disability groups and businesses in the city.

Resolved:

(1)  To recommend reviewing the existing policy on the issue of hackney carriage vehicle licences to reduce the limit on the number of hackney Carriage vehicle licenses to be granted by the Authority to 250;

(2)  To carry out an eight-week consultation on the proposed change, starting in January 2024.