A call on the Government to end ‘out of area’ licensing has been repeated
The fund opens today(Image: South Wales Echo)
A new £2m fund available to Greater Manchester private hire taxi drivers to upgrade their vehicles has opened, transport bosses confirmed on Tuesday.
The scheme is for private hire drivers licensed in Greater Manchester only. Making the announcement on Tuesday, transport chiefs said there would also be ‘continued calls on the Government’ from the city region to change the law on so-called ‘out of area’ licensing.
The move is designed to encourage drivers – and provide them with financial support – to switch to cleaner vehicles to cut air pollution.
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Open for applications from today, Tuesday September 15, the Private Hire Vehicle (PHV) Support Fund offers grants of up to £2,500 to private hire vehicle drivers licensed by one of Greater Manchester’s ten councils.
The scheme will help drivers with older vehicles upgrade to Euro 4 or higher for petrol vehicles, Euro 6 for diesel vehicles, or zero-emission capable vehicles.
Taxis – black cabs – and private hire vehicles are said to make an estimated 120,000 journeys in Greater Manchester per day – or an estimated 44 million trips annually.
The city region, however, has repeatedly raised concerns about the growth of out-of-area private hire operations, where vehicles can be licensed by one authority, but spend most of their time working elsewhere.
It’s estimated that more than 50 per cent of private hires working in Greater Manchester are licensed elsewhere, giving local authorities limited oversight over those drivers and the vehicles they use, limited ability to enforce local standards, and no direct control over out-of-area private hire vehicles serving communities here.
Civic and transport leaders in Greater Manchester want a ‘license where you operate’ model of operation.
The Government has confirmed it will bring forward a Draft Taxi and Private Hire Vehicle Bill for pre-legislative scrutiny.
The Mayor of Greater Manchester, Bev Craig, said: “Private hire drivers play a vital role helping to keep Greater Manchester moving every day, whether that’s getting people to work, healthcare appointments, school, or helping them get home safely at the end of the day.
“We’ve listened to the trade and we’re launching this fund to offer private hire taxi drivers practical financial support to help them move to cleaner, more modern vehicles, which is good for them, passengers and good for our environment.
“I’ll continue the work with the Government to secure stronger legislation that better supports our locally licensed drivers. They should not be undercut by drivers licensed elsewhere, where we can’t guarantee a safe, high-quality service.”
Qualifying vehicles must not meet emissions standards.
Unions, meanwhile, have welcomed the fund.
Kevin Flanagan, GMB Manchester Central Branch Secretary, said: “Drivers have faced significant challenges and costs in upgrading their vehicles in recent years, these grants will provide welcome assistance to those still making the transition to newer vehicles. We want Greater Manchester to be a national model for the trade and will continue to support policies and practices that improve standards, enhance passenger confidence and support the livelihoods of private hire drivers across the region.”
Andy Wells, Regional Officer for Unite the union, meanwhile, said the move would ‘only lead to an improvement in services for the customer’.
The fund complements Greater Manchester’s existing Hackney Support Fund. Launched in December 2025, it helps licensed black cab drivers upgrade to cleaner vehicles, with funding already committed to more than 400 locally-licensed black cab drivers.
Drivers licensed with a Greater Manchester local authority can find out more and apply to the funds online at: www.greatermanchester-ca.gov.uk/phv-support-fund
