South Staffordshire taxi licensing to be handled by Wolverhampton Council

South Staffordshire Council is handing over taxi and private hire licensing functions to Wolverhampton Council (CWC). The delegation was agreed by the district authority’s cabinet on Tuesday for an initial three-year period.

A cabinet report said: “Joint working by way of delegating the taxi licensing function to CWC has several benefits: greater choice for the trade including on-line applications (and) in terms of garages and medical practitioners; greater public safety through improved enforcement activity (and) tighter standards; reduced licensing costs for the trade and costs for the council.

“The taxi market is undergoing significant change in the same way that Licensing authorities are. This has been further accelerated through the Covid pandemic.

“The key challenges (include) increasing cross-border hire based on apps, e.g. Uber, (and) the need for greater enforcement resources to be devoted to taxi licensing as a result of various investigations into child sexual exploitation. App-based booking systems, supported by case law, make the traditional view of a private hire operator in an office with a phone located within the boundary of the licensing authority outdated.

“The Covid pandemic has forced the way we do business with the trade to find online rather than face to face solutions to processing applications for licenses. It has also created additional urgency in reducing the financial burdens on both the council and the taxi trade.

“CWC has embraced and dealt with these changes. The level of process change and investment by CWC, embracing new technology for service delivery and taking into account the new technology used by the taxi trade, along with a robust approach to compliance and enforcement is impressive.”

South Staffordshire Council has seen a fall in income from taxi licensing in recent years, the report said.

It said: “The council has been struggling to balance income and expenditure on taxi licensing for the last 5 years, and this will increasingly become more difficult with a balance shortfall of £25,000 expected by 2023.

“Government and the Local Government Association advice and guidance, supported by case law, encourages local authorities to ensure that all administration and enforcement costs of a licensing system are met by the beneficiaries of the system and not at the expense of the general taxpayer.

“SSDC faces the same financial challenges that all public sector organisations are facing in trying to achieve a balanced budget and financial stability through its Medium-Term Financial Strategy.

“If the taxi licensing function is not delegated to CWC there will need to be a significant increase in taxi licensing fees in order to sustain a balance in expenditure and income.”

Members of the taxi trade in South Staffordshire have been consulted on the changes and two meetings were held, including a virtual session.

The report said: “Concern was expressed in relation to an expected increase in fees at CWC. However, fees at SSDC would increase significantly in a fee review. This increase is balanced by the reduction in vehicle fees.

“The trade were very complimentary of the service provided by SSDC, and highlighted worries that the service may not be as personal or timely at CWC. At SSDC with a very small team sickness or holiday absences increase the risk of gaps in provision to the trade, and we have received complaints about availability of appointments.

“Ability to apply for licences online 24 hours per day should give the trade more flexibility and ease of access to the service.”