Changes to private hire vehicle licensing

Do these changes affect you?

Do you supply a vehicle and driver for money?  Are you aware that there are changes afoot in the area commonly known as ‘Contract exemption’? 

Currently, vehicles and drivers who provide under an exclusive contract for at least seven days are exempt from the current licensing laws.

As of the 28th January 2008, section 53 of The Road Safety Act 2006 will come into force.  This will repeal section 75(1)(b) of The Local Government (Miscellaneous Provisions) Act 1976, which allowed for certain types of vehicle hire / contract agreement not covered within the realms of private hire licensing, where presently a licence is required from the Local Authority, to supply a car that carries eight or less persons with a driver where commercial benefit is obtained.

What is a private hire vehicle?

A PHV is defined in legislation as “a motor vehicle constructed or adapted to seat fewer than nine passengers, other than a hackney carriage or public service vehicle or a London cab or tramcar, which is provided for hire with the services of a driver for the purpose of carrying passengers”. The repeal of the contract exemption will not change this definition. All that will happen when the contract exemption is repealed is that vehicles outside London which fall within the definition of a PHV in the Local Government (Miscellaneous Provisions) Act 1976 (“the 1976 Act”) and which have not been licensed because of relying on the contract exemption, will be brought within the PHV licensing regime.

What did the contract exemptions cover?

At present, by virtue of section 75(1)(b) of the 1976 Act, a vehicle in England and Wales outside London which would otherwise need to be licensed as a PHV is exempt from PHV licensing requirements if it is used for contracts lasting not less than seven days. Similarly, the operator and driver of that vehicle are exempt from PHV licensing requirements.

Will I be affected?

If you answer yes to any of the following questions, it is probable that you will need a licence and should contact the Council for more information:

• Do you make available a vehicle for hire that can carry no more than eight passengers, with a driver?  E.g. school contract transport, airport transfer services, theatre trips, courtesy cars, chauffeur services.
• Do you make a vehicle and driver available for your customers? E.g. garages where the garage’s staff transport customers around whilst their car is being serviced.
• Do you receive any sort of commercial benefit or advantage (whether as a payment or other form) from this?

Are there any exceptions?

• A vehicle that is used as an emergency ambulance
• Childminders carrying children, unless it is a contractual requirement that a vehicle is provided as part of looking after a child
• Weddings
• Funeral.

There are severe penalties for not being licensed in the appropriate manner.  Failing to have the appropriate licences in place can result in a criminal prosecution for: -

• Failing to hold an operator’s licence
• Failing to hold a vehicle licence
• Failing to hold a drivers licence

Each offence carries a maximum penalty of £1,000.

For further information, please contact the Licensing Department at Stevenage Borough Council on 01438 242724 / 01438 242715.

Notes: -

1. Sections 53 of the Road Safety Act 2006 will be implemented from 28 January 2006.  This will repeal section 75(1)(b) of the Local Government (Miscellaneous Provisions) Act 1976.
2. Under the Local Government (Miscellaneous Provisions) Act 1976, licences are required to operate or drive private hire vehicles or taxis which can carry eight or less passengers.  Section 75(1)(b) provided an exemption from this requirement, where a vehicle and driver was provided under an exclusive contract of not less than seven days.
3. The repeal has been brought about because of concerns that section 75(1)(b) was being abused by some drivers who were claiming the exemption in order to escape the licensing requirements that ought to have otherwise applied. 
4. In order to comply with the licensing laws, up to three licences may be required:
   
   An operator’s licence.  This is granted for up to one year, and places various record-keeping requirements on licence-holders;
   A vehicle licence.  This is granted for up to twelve months (pro-rata depending on when the application is made) after completion of a compliance test;
   A driver’s licence.  This is currently granted for up to one year (pro-rata depending on when the application is made) to drivers who can show they are ‘fit and proper’ after satisfactorily completing a medical examination, an enhanced Criminal Record Bureau disclosure, and a topographical Knowledge Test. 

For more information contact Robert Cox on 01438 242715  or email robert.cox@stevenage.gov.uk