I have always believed that most operators doing their own account work and do not accept bookings from the public, don’t have to have an operators license, for example the drivers do not need licenses and the vehicles do not have to be tested. However, they can be tested to obtain congestion charge exemption.

If the operators drivers are licensed and the cars have been tested to obtain congestion exemption, they could make them available to any licensed operators as a sub contract vehicle. The PCO use the threat of a change of legislation to close this loophole to keep operators licensed. I wondered if in fact the government will find the time to deal with this or will it just be held as a threat?

I live outside London and owned business premises since 1989. I would like to give up these premises and to continue to have an operator license, but I need a London address with relevant planning permission. Most people operating from home addresses obtain permission from their local council station and don’t realise they need planning permission to run a business from their home.

On a recent inspection from my PCO officer, he mentioned that planning permission has to be obtained, and not just a letter stating they thought planning permission is probably not needed. This means that all home businesses will have to obtain planning permission or a letter saying the business was operating with Certificate of Lawfulness of proposed use.

I now feel it would be possible to set up one address for many people to register at one operating base, so if any one man band company is interested, please get in touch. The whole area of licensing is open to how the PCO wants to interpret things to suit their financial earning potential. For example, I have just renewed my license after the first five years and had to pay £637 for the application! Why should we be charged this to renew?

I contacted Kathleen Ryan from the Operator Licensing Section, Public Carriage Office to find out, and the letter I received was as follows…

The term ‘operator’ means as a person who makes provision for the invitation of acceptance of, or who accepts, private hire bookings and a ‘private hire booking’ means a booking for the hire of a private hire vehicle for the purpose of carrying one of more passengers (including a booking to carry out as sub-contractor a private hire booking accepted by another operator).

During the course of licensing London’s private hire industry, a number of companies who provided their services on a contract basis to local authorities and hospitals etc. challenged the requirement to be licensed. They asserted that as their vehicles were not available for hire by the public their businesses did not fall within the scope of the Act.

It has always been held by the Public Carriage Office that the Act was intended to be all inclusive other than for the specific exemptions specified therein (i.e. taxis, public service vehicles and vehicles whose use as a private hire vehicle is limited to use in connection with funerals and weddings). However legal advice supported the contention that operators, vehicles and drivers solely undertaking contract work did not need to be licensed.

With that in mind I would say that it is possible for a person who provides a chauffeur service to operate without being licensed, provided that he can demonstrate that there is a genuine limitation on the use of vehicles.

You should however be aware that this position may change if and when paragraph 44 of the road Safety Bill, which was introduced in the House of Commons on 30th November 2004, is enacted. For your information paragraph 44 of said Bill made provision for the definition of a private hire vehicle to be amended by removing the phrase ‘to the public’