York Council ordered to remove special conditions over Drive cross-border hires

York Council had no right to impose additional conditions on a private hire operator looking to use drivers licensed in neighbouring cities, Harrogate Magistrates Court has ruled.

In a case that has implications for cross-border hiring, District Judge Adrian Lower ruled that taxi operator 57 Taxis, trading as Drive, and its owner Christopher Hall, would be allowed to use drivers from other Driver-owned businesses in different towns to fulfil York jobs, as the council had found the company and Hall “fit and proper”.

Judge Lower ruled that imposing additional conditions imposed by the council on Hall’s operator’s license, were against the principles of natural justice, as they were imposed without notice, consultation or a right to respond, and were imposed after the license had been granted.

York Council had argued that the conditions, which included having to ensure that any drivers taking on York jobs had taken York’s “Safeguarding and Knowledge test” were in the interests of public safety. But Hall argued it left Drive at a disadvantage and his business at a disadvantage. 

Judge Lower ruled that the supplementary conditions. Were contrary to the provisions of the Deregulation Act 2015, which allows cross-border hiring practices. He revoked the conditions, and ordered York council to reimburse the Hall’s legal expenses of £18,500.

Judge Lower said: “The Appellants were afforded no opportunity to make any representations about how those additional conditions would affect their business in advance of the decision letter. As a result, their representations have taken the form of this appeal. This, in my judgement, is a clear breach of natural justice. There has been no reason advanced before me as to why the committee could not have invited further representations by the Appellants before making their decision as to the reasonable necessity for the Additional Conditions to be added to the operators’ licences granted to the Appellants.”

The judgement supports the right of operators to use the deregulation act to offer jobs to drivers who are not licensed in the area. In the case of Drive, the regional group entered the York market after taking over the business of 659 Private Hire, which operated with 70 drivers under the terms of its license.

Drive’s plan was to expand by offering additional jobs under the Deregulation Act’s “right to roam” provisions to drivers working for other Drive companies licensed in other towns such as Hull and Doncaster, using the Drive app.

The ruling suggests that councils cannot arbitrarily introduce conditions that run contrary to the Deregulation Act, providing the operator is deemed “fit and proper”.