Rumours swirling in political circles suggest that Greater Manchester Mayor Andy Burnham could be poised as a potential successor to Labour leader Sir Keir Starmer. While no official confirmation has come from the Labour Party about any imminent leadership change, these speculations have reignited discussions about the future direction of Labour and what a Burnham-led party might mean for key sectors such as the UK’s taxi and private hire industry.

Burnham has been a consistent critic of the current taxi licensing system, particularly the cross-border hiring loophole which allows drivers licensed in one local authority to operate in entirely different regions. He argues this practice undermines passenger safety, weakens local enforcement powers, and damages the businesses of local taxi drivers who comply with more stringent licensing rules. Burnham has persistently called for changes in legislation to restrict drivers and vehicles to operate only within their licensed areas, backed by national minimum standards to provide consistency across the UK. He is also concerned about the Deregulation Act 2015, which enabled private hire operators to subcontract bookings across local authority borders, a move that has disproportionately benefitted large app-based companies while reducing local accountability.

Should Burnham ascend to leadership, many in the taxi trade anticipate substantial reforms. These might include ending cross-border licensing to prevent drivers licensed in places like Wolverhampton from operating in cities such as Manchester, Liverpool, or London, empowering councils and combined authorities with stricter enforcement powers to tackle out-of-area vehicles effectively, revisiting and potentially rolling back parts of the Deregulation Act to restrict cross-border subcontracting by private hire operators, and establishing national safety and driver standards to ensure uniform vetting, language proficiency, and vehicle inspections. This agenda has generated support among local taxi drivers who feel squeezed by out-of-town vehicles but could pose operational challenges for large private hire companies like Uber, Bolt, and Free Now.

The talk of such reforms is not unfounded. Andy Burnham recently announced plans to ban out-of-area taxi working if Labour wins the next general election. According to a verbal confirmation from Louise Haigh, Shadow Transport Secretary, addressing this issue would be a priority for a Labour government, aiming to ensure taxi services operate strictly within their licensed jurisdictions to enhance passenger safety and support local taxi businesses.

Although speculation about Burnham replacing Starmer remains just that—speculation—these rumblings spotlight a broader tension between Labour figures on policy directions. For instance, Burnham has publicly opposed some of Starmer’s proposals, such as the 50% rise in bus fares Starmer suggested to ease public finance pressures, choosing instead to maintain a £2 cap on bus fares in Greater Manchester. Burnham’s approach reflects a more localised, socially grounded policy perspective, whereas Starmer’s tenure has involved pragmatic shifts, including commitments to renationalisation in sectors like rail and energy, but balanced with an emphasis on government-business partnerships to support profitability.

Moreover, Burnham has openly criticised Starmer’s leadership style in certain respects, particularly the policy discouraging Labour frontbenchers from joining picket lines during strikes. In the context of a cost-of-living crisis, Burnham expressed that standing with strikers is neither controversial nor neglectful of workers' grievances, underlining his view of leadership that is empathetic to grassroots concerns.

For now, Starmer remains Labour leader, navigating the challenges of his party’s direction and leadership reforms amid external pressures. Yet the rumours about Burnham, combined with his distinct political stances and strong advocacy on transport and workers’ rights, suggest that if he were to take the helm, significant shifts could reshape Labour’s policy landscape, including notable reforms for the taxi and private hire sector.

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Source: Noah Wire Services