Burnham targets out-of-area taxi licences as business leaders push for emissions deadline extension

Key Points:

• Greater Manchester Mayor Andy Burnham launched a campaign to reform taxi licensing.
• Burnham seeks to ban out-of-area taxi licensing and bring accountability locally.
• The Federation of Small Businesses (FSB) welcomes reform but urges extension of emissions compliance deadline to 2029 or 2030.
• Concerns raised over high costs of replacing non-compliant black cabs with Euro 6 models.
• FSB warns premature implementation could harm taxi operators and sectors like hospitality and SEN education.
• Greater Manchester’s Clean Air Plan proposes grants and loans to assist taxi upgrades.
• Leaders backed extending emission compliance to 31 December 2026.
• Public consultation with taxi trade ongoing over a 12-week period.

Proposed reforms to Greater Manchester’s taxi licensing laws, unveiled by Mayor Andy Burnham, have drawn cautious support from the business community amid warnings that emission deadlines could severely impact local operators.

What changes has Andy Burnham proposed for Greater Manchester taxis?

Greater Manchester Mayor Andy Burnham has launched the “Backing our taxis: Local. Licensed. Trusted.” campaign aimed at overhauling taxi licensing across the city-region. He has called for a national ban on “out of area” licensing, citing that half of taxis operating in Greater Manchester are licensed outside the area, particularly in Wolverhampton. Burnham described the current system as “broken” and called for powers to be devolved to Mayoral Combined Authorities under the upcoming English Devolution Bill.

Linked to licensing reform, Greater Manchester recently agreed with the government on a new Clean Air Plan to improve air quality without implementing a charging zone.

How has the business community reacted to the proposals?

The Federation of Small Businesses (FSB) has expressed general support for the licensing reforms but remains concerned about emissions compliance requirements. Robert Downes, FSB Development Manager in Greater Manchester, said the proposed measures for hackney carriage operators were “not sufficient.”

Downes pointed out that while drivers are offered grants of up to £8,000 to replace older vehicles with cleaner Euro 6 models, the costs of replacement were “eye-wateringly expensive” and far beyond the grant support available. “Until the Mayor has control of the out-of-town taxi problem, which is deeply damaging the viability of ‘homegrown’ taxi operators to make a living, it doesn’t seem fair or right to move ahead with the proposals around emissions standards if the out-of-town issue hasn’t been resolved,” Downes said.

He warned that without an extension of the compliance deadline beyond December 2026, there is a “good chance” Greater Manchester could lose a significant portion of its black cab fleet, which would impact sectors such as hospitality, retail, and special educational needs (SEN) transport.

What financial support is being offered to taxi drivers?

Greater Manchester authorities are proposing various financial supports as part of the Clean Air Plan. Discussions are underway on how to allocate an £8 million fund for Hackney carriage drivers, with possibilities including subsidised, low-interest loans to help drivers of private hire vehicles as well.

Mayor Burnham confirmed he would consider providing grants of up to £1,200 and loans of up to £5,000 to assist drivers in making their vehicles compliant with clean air legislation.

What decisions have local authorities taken regarding emissions deadlines?

Leaders of Greater Manchester’s ten local authorities have endorsed a proposal to extend the emission compliance deadline from the end of 2025 to at least 31 December 2026. This extension, however, remains subject to approval by individual licensing committees. Authorities have also backed providing exemptions for vehicles until their maximum permitted age under existing licence agreements.

What are the next steps for Greater Manchester’s taxi reforms?

The Greater Manchester Combined Authority has launched a 12-week consultation period with the taxi trade to gather feedback on the proposed reforms and support measures. The consultation aims to ensure that reforms are workable for drivers while achieving the broader goal of a cleaner and greener city-region.

Councillor Eamonn O’Brien, leader of Bury Council and Greater Manchester’s clean air policy lead, said: “Just like the Bee Network, we want to have the right standards in place to encourage drivers to license here in Greater Manchester. But we understand the pressure being faced by drivers, and that’s why we want to work with the trade to find out how we can best ensure all journeys are safe and reliable for passengers. We also want to provide the right support and time to help them transition to cleaner vehicles, helping deliver a cleaner, greener city-region.”