Licensing law, regulation and the role of the licensing authority
One area, three licences
Outside London the local council is the licensing authority: hackney carriages under the Town Police Clauses Act 1847, and PHV drivers, vehicles and operators under Part II of the Local Government (Miscellaneous Provisions) Act 1976. In London the role sits with Transport for London (London Cab Order; Private Hire Vehicles (London) Act 1998). The authority issues three separate permissions - driver, vehicle and, for PHVs, operator - and each can be granted, refused, suspended, varied or revoked. The test applied is the "fit and proper person" standard, backed by the DfT Statutory Taxi and Private Hire Vehicle Standards (2020): enhanced DBS with barred-list checks, medical fitness to DVLA Group 2 level, right to work, driving assessment, topographical and English-language competence.
Know the boundary between the trades. A hackney carriage may be hailed in the street or wait on a rank and must use its meter on a metered journey; a PHV may only be used for a journey booked through a licensed operator, must not be hailed and must not wait on a rank.
Enforcement ranges from advice and cautions to suspension, revocation and prosecution; a driver may appeal to the magistrates' court, generally within 21 days.
Traps: councils do not set PHV fares; a licence covers only the area named on it; taking a passenger without hire-and-reward insurance is an offence even if everything else is in order; "the operator booked it" is no defence for the driver.
Rule of thumb: before accepting any job ask - is this journey hailable (hackney) or must it come through the licensed operator (PHV)?