Taxi drivers in Derby are raising the alarm over a growing number of private hire vehicles operating in the city under licences issued by Wolverhampton City Council — a situation many are calling a regulatory loophole that’s putting livelihoods and public safety at risk.
During a recent licensing committee meeting (June 26), Derby councillors discussed concerns about out-of-town taxis dominating the local streets, with Wolverhampton being the main authority granting these licences. The committee has now agreed to write to Derby’s MPs in a bid to push for legal reform that would allow Derby City Council to regain control over who operates in its jurisdiction.
Local drivers say the disparity in licensing costs and enforcement levels is fuelling the problem. According to Lee Roach, chairman of the Derby Area Taxi Association, “It’s about four times cheaper to get licensed in Wolverhampton than in Derby. There’s also less enforcement, so drivers know they can work here without fear of checks.”
Roach added that Derby’s recently introduced policy requiring newly licensed private hire vehicles to be five years old or less is only making things worse, driving more local drivers to seek cheaper and less regulated options elsewhere.
Another Derby driver, Scott Baldwin, traced the issue back to Wolverhampton’s decision to scrap the topographical knowledge test — a standard still required by Derby. “That test ensures drivers know the city. Without it, licensing is easier — but public safety and service quality suffer,” Baldwin said.
Labour councillor Martin Rawson echoed those concerns: “We can’t monitor or inspect vehicles that are licensed elsewhere. That means we can’t ensure the same safety standards for passengers.”
Despite the criticism, Wolverhampton City Council maintains that its licensing processes are lawful and thorough. A council spokesperson said: “It is illegal for councils to refuse an application based on the applicant’s residence. Likewise, we cannot cap the number of private hire licences issued. All our licence fees are ringfenced and only used for taxi-related activities.”
They added that Wolverhampton’s adoption of digital systems and a nationwide enforcement team — including units in the East Midlands and the North — shows a serious commitment to public safety. “Our compliance officers are active across the UK every Friday and Saturday night,” the spokesperson said.
However, with Derby’s taxi community feeling squeezed and a lack of local oversight becoming more apparent, many say the time has come for urgent legal reform. The issue isn’t unique to Derby — towns and cities across the UK are grappling with similar challenges, and the industry is calling with one voice: fix the loophole before it breaks the system.
Source: Derby
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