It’s an issue that the new government said it would sort out – but private hire taxis licensed in other parts of the country are still plying their trade in Greater Manchester.

Local cabbies have taken issue with the private hire drivers taking their business, particularly in Manchester city centre, when they are licensed elsewhere. The private hire drivers, who work for pre-book only companies like Uber, say themselves the checks are quicker, easier and cheaper to get through.

This has led to concerns over safety from local authorities – who are also left out of pocket as a result of drivers getting their licences from further afield.

An investigation conducted by the Local Democracy Reporting Service last year found that 8,952 drivers in the city-region, are actually licensed by Wolverhampton City Council – based around 80 miles away. This makes up 35 per cent of the private hire cabs operating across the city-region.

FOI (Freedom of Information Act) data has revealed that Wolverhampton Council has raked in £12.3m from licensing fees in the last three years – and 24.8 per cent of their drivers work in Greater Manchester.

Current legislation means that private hire drivers can operate anywhere in the UK outside of London, even if they are not licensed in that particular area.

Finance papers from Wolverhampton City Council found the licensing team gained £6.1m in the 2023/24 year alone. Some of this money is coming from drivers that work in the Greater Manchester region, meaning local councils are missing out on that cash.

The Department for Transport is aware of the concerns this is causing local authorities and have stated they are looking at ways to support them going forwards.

A DfT spokesperson said: “We are aware of the concerns around private hire vehicle licensing, including out-of-area working, and will be considering ways to support local authorities with the issue.”

National government says that they will support local councils on this matter, but the Greater Manchester Combined Authority believes that change can only happen through national legislation.

A GMCA spokesperson said: “We recognise the concerns and challenges that out of area taxi and private hire operations can cause for people in Greater Manchester.

“However, at present, only a change in national legislation can prevent out of area operation.

“As a city-region we will continue to make the case for change to strengthen our local licensing regimes.”

Back in February, Greater Manchester mayor Andy Burnham told listeners of the BBC Radio Manchester ‘In the Hotseat’ phone-in that this practice would be stopped by an incoming Labour government.

Mr Burnham told listeners he had verbal confirmation of this from Louise Haigh, who was shadow transport minister at the time.

Mr Burnham told listeners on February 1: “[On] out of area working — the ‘Wolverhampton Problem’ — I was in Westminster yesterday (January 31), discussing HS2 with the government, but I was also with the shadow transport secretary.

“I got a firm commitment from the shadow transport secretary that out of area working will be stopped under a Labour government.”

Now she is in post as the transport minister there is yet to be any sign of movement on this by DfT – but they have only been in power for less than two months.

Although there are some private hires that get licences with other ‘out of town’ providers such as Sefton Council, Wolverhampton City Council provides the most from out of the area, according to FOI data.

As a result of drivers in the Greater Manchester region licensing elsewhere, there is potential that local councils are losing out on millions. When speaking to some of the drivers previously, the M.E.N was told on a number of occasions that it is quicker and easier to get a licence with the midlands-based local authority.

For example, under Manchester City Council, it costs £255 to register as a new private hire driver for three years, plus costs for tests and between £222 and £342 to register a vehicle (depending on its age). Under Wolverhampton Council, the application fee for a new private hire driver is £49 for a one-year licence or £98 for a three-year licence and it costs £95 to register a vehicle under 10 years old.

Despite this, there is no obvious financial motive for Wolverhampton Council monopolising the licensing trade because the money gained from licensing fees can’t fund other council projects. Legally, 100 per cent of this income has to be used on the licence scheme, including issue, administration and compliance.

According to their response to the FOI submitted by the LDRS, where there is a surplus, this is placed into the reserves and is used to reduce fees (for licensing) the following year.

Wolverhampton Council have previously denied that it is ‘quicker and easier’ to get a private hire licence with them, claiming applicants undergo a ‘strict and rigorous’ process that includes a one day training course, enhanced Disclosure and Barring Service checks, a medical certification and a face to face English assessment.

A spokesperson for City of Wolverhampton Council previously said: “While City of Wolverhampton Council has never actively encouraged applications from drivers outside the city, existing legislation requires that if an application is submitted and requirements are met, then the application must be granted. The council may not refuse an applicant simply because they live in a different area.

“Our early adoption of digital technology has allowed us to offer a simple and efficient online application procedure, with the requirement that drivers attend in person for training and strict assessment before an application can be processed.

“Applicants are usually local to the area they drive in, but many have chosen to be licensed in Wolverhampton due to our efficient, yet rigorous, licensing process. Public safety is of paramount importance to us. Partnership working with our Licensing colleagues and other agencies shows our commitment to upholding our responsibilities; we expect drivers and vehicles licensed by us to always maintain the highest standards.

“This is irrespective of the administrative boundary within which they are operating at any particular time. The City of Wolverhampton Council takes its enforcement responsibilities seriously and our officers are out across the country, every Friday and Saturday night, working to protect the public.”