The council is also considering changes to the way that taxis and private hire vehicles are tested
Taxi drivers in Peterborough could face having to replace older vehicles under proposed changes to the city’s licensing policy. Peterborough City Council is proposing to remove acquired rights that currently apply to vehicles licensed before July 26, 2022, also known as ‘grandfather rights’, in a bid to replace an ageing fleet.
It is one of a series of potential changes that could be made to the council’s Taxi and Private Hire Policy 2026-2031, which officials say could have a “significant impact” on the licensed trade. Financial checks for all new and renewal operator applications may be introduced too.
The council said these checks would help to establish whether operators have sufficient financial capacity to deliver passenger transport contracts, while also addressing risks related to money laundering and organised crime. Among the other proposed changes is that zero-emission vehicles could have a maximum licensing age of 18 years, while the existing ultra-low-emission vehicle category would be replaced with a hybrid category covering mild hybrid, full hybrid and plug-in hybrid vehicles.
The council is also considering changes to the way that taxis and private hire vehicles are tested. One option would be replacing the existing certificate of compliance system with an MOT-only model, with Aragon remaining as the council’s sole testing site.
Officers are also deciding whether to appoint a limited number of additional DVSA-authorised MOT testing centres, potentially giving drivers greater flexibility over testing appointments. These proposed policy updates follow changes to legislation, national standards and industry best practice since the current policy was introduced in 2022.
They have been influenced by a national move towards stronger taxi regulation and recommendations arising from the Baroness Casey review. A report written by Jacqui Harvey, head of the city council’s regulatory services, said: “The proposed policy changes are likely to have a significant impact on the licensed trade.
“The main areas of impact are expected to include the removal of grandfather rights for older licensed vehicles and the introduction of financial checks for all new and renewal operator applications. These changes are intended to strengthen public safety, improve regulatory oversight and ensure that licensed operators and vehicles continue to meet appropriate standards.
“Increased safeguarding of vulnerable passengers is paramount, particularly where taxi and private hire services are used to deliver passenger transport contracts or support other journeys involving children, young people, adults at risk or those who may be vulnerable due to their circumstances.”
The city council does not currently require CCTV to be installed or used in licensed vehicles, but Ms Harvey’s report stated that if CCTV became a legal requirement nationally, the council would adopt the requirement and update its licensing policy accordingly.
Licensing committee members will review the proposed revisions to the taxi policy on September 9 and determine whether a one-month consultation should proceed. Any responses will be brought back to the licensing committee before any final policy is considered by full council.
In response to the report, the Peterborough Private Hire Association said it supported:
- Removing the 105g/km CO2 restriction
- Recognising mild, full and plug-in hybrids
- More modern and affordable vehicle choices
- Removing the outdated critical-failure criteria
- Increasing vehicle-testing capacity
However, the association said it did not support:
- Reducing petrol and diesel private hire vehicles from 10 years to nine years without evidence or justification
- Reducing Hackney carriages from 15 years to 12 years-particularly when wheelchair-accessible vehicles are extremely expensive
- Removing grandfather rights from proprietors who purchased or financed vehicles based on the existing policy
- A £100 signage fine without a warning or reasonable opportunity to correct an innocent mistake
- Unclear financial and credit checks that could unfairly affect smaller operators
“We will be calling a meeting with drivers, proprietors and operators to discuss these proposals and agree our formal response,” the association said in a public statement. “The association will support genuine improvements, but we will firmly challenge unjustified restrictions and unnecessary costs being placed upon the trade,” it added.

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