Sefton Council is grappling with an unprecedented surge in taxi driver licence applications, with half of all new applicants residing outside the borough. At a recent Licensing and Regulatory Committee meeting, principal licensing officer Mark Toohey reported that approximately 50 new drivers apply each week, and the number of knowledge tests has risen sharply to accommodate demand.
Record Numbers and Out-of-Area Applicants
By April 1 this year, the total number of live taxi licences reached 12,957, up from 10,958 on the same date in 2025. Half of newly granted licences are issued to drivers from outside the Liverpool City Region. The council offered 4,109 knowledge tests over the past year, compared to just 1,165 in 2024/25. The pass rate stood at 58%, while 993 applicants failed to attend their test—though they still paid the £50 application fee.
Committee chair Cllr John Kelly noted the financial upside, saying: “We’ve actually made a few bob out of that then, haven’t we?”
Operational Impact and Enforcement
In May alone, the Bootle One Stop Shop conducted 480 tests, with 142 no-shows and 220 passes. Cllr Dominic McNabb questioned the reason for the application surge and whether it has boosted council revenue. Mr Toohey confirmed increased income and described the authority’s reserve fund as “fairly healthy.” Extra staff are being recruited to handle the workload.
Mr Toohey suggested that Sefton’s efficient processing times make it an attractive licensing destination, rather than its fees, which are comparable to neighbouring boroughs. Currently, private hire vehicle drivers can operate nationwide, leading to Sefton-licensed taxis being spotted as far away as Brighton. This contrasts with black cabs, which must operate within their licensing area.
Enforcement Operations Reveal Defects
Since February, the council’s enforcement team has conducted nine operations at Liverpool Airport, Manchester Airport, and Manchester Piccadilly, inspecting 205 vehicles. Some 40% (82 cars) had defects resulting in suspension or defect notices. These figures follow revelations that Wolverhampton Council granted nearly 500 private hire licences to drivers with Liverpool postcodes in 2024, with 96% of all taxi licences issued in that city going to out-of-area drivers.
The Department for Transport (DfT) launched a consultation on taxi licensing earlier this year, with officials describing out-of-area working as a “real challenge.” Mr Toohey noted that Manchester mayor Andy Burnham has called for restrictions tying drivers to their licensing area, but previous attempts in Knowsley were unsuccessful. He added that the council cannot refuse applications based on the applicant’s location.
Broader Concerns and Government Action
The Local Government Association has raised concerns that out-of-area working limits councils’ ability to safeguard communities. The government’s Taxi and Private Hire Vehicle Bill states: “Without a closer match between where licences are issued and where journeys take place, enforcement activity and resources remain misaligned, limiting effectiveness and undermining public confidence.”
