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Request for Public Consultation - Unmet Demand Survey Perth

Perth and Kinross Council · 25 March 2025
Back to Licensing Committee — 25 March 2025 and its agenda

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Our vision is a Perth and Kinross where everyone can live life well,
free from poverty and inequality
___________________________________________________________________
Committee or Board: Licensing Committee
Date of Meeting: 25 March 2025
Report Title: Request for Public Consultation – Unmet Demand
Survey Perth
Report Number: 25/63
Report Author: Sarah Rodger, Legal Manager
Organisational Lead: Lisa Simpson, Strategic Lead, Legal and Governance
___________________________________________________________________
1. Purpose
1.1 The purpose of this Report is to update the Licensing Committee in relation to
the outcome of the latest Unmet Demand Survey and to recommend that a
public consultation be undertaken regarding the options set out in the survey.
In particular, the report seeks authority to consult on proposals to either
increase the limit for taxis in Perth City by a further 24 licences or to remove
the limit on the numbers of taxis which may operate in Perth City
1.2 Sections
1. Purpose
2. Recommendations
3. Background
4. Current Considerations
5. Proposal
6. Conclusion/Rationale for Recommendations
7. Impact Value Assessment

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8. Appendices
2. Recommendations
2.1 The Survey concludes that there is an unmet demand for taxis in Perth. It is
therefore recommended that the Committee:
2.1.1 Note the contents of this Report;
2.1.2 Requests that the Strategic Lead – Legal and Governance undertakes
consultation with the public and the taxi and private hire trade in relation to
either:
(a) the issuing of a further 24 taxi licences within Perth City, or 
(b) the removal of any limit on the numbers of taxis that may operate in
Perth City.
2.1.3 Requests that the Strategic Lead – Legal and Governance reports back to a
future meeting of the Committee in due course with the outcome of the
consultation and any recommendations. 
3. Background
3.1 The Council is responsible for regulating taxi and private hire operators and
drivers in the Perth and Kinross area.  In terms of Section 10 (3) of the Civic
Government (Scotland) Act 1982, an application for the grant of a taxi licence
may be refused by a licensing authority for the purpose of limiting the number
of taxis in respect of which licences are granted. However, applications can
only be refused on this ground if the Council is satisfied that there is no
significant demand for the services of taxis in their area which is unmet. 
3.2 Before the Council can rely on this ground to refuse applications, it must be
able to establish that there is no significant unmet demand for taxis in its area.
This has been the subject of a number of court cases across Scotland over
the years, which have clearly established that the most appropriate way in
which Councils can assess demand is to carry out a survey at regular
intervals. This is also reflected in the Scottish Government Best Practice
Guidance at https://www.gov.uk/government/publications/taxi-and-private-hire
-vehicle-licensing-best-practice-guidance.  It is recommended that this takes
place at least every three years. The Council had adopted a practice of
carrying out such surveys and commissions and external provider to
undertake this on behalf of the Council given the specialist and technical
nature of the task.
3.3 The Council limits the number of taxi operator licences for Perth and has done
so for many years.
3.4 In 2010, the Council reviewed its policy of having a limit on taxis and
considered whether the limit should be removed. This would have allowed
unlimited numbers of taxis in Perth and Kinross. The Committee decided,

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following that review, that it was necessary to continue to limit the number of
taxis in Perth and Blairgowrie (report 11/15).
The principal reason behind that decision was that there would be significant
benefits to the public in having a limit because this supported continued
investment in the taxi trade. 
Since then, surveys have been carried out regular intervals to establish
whether there is any unmet demand for taxi services, to inform decisions
about what that limit should be set at.
3.4 The last survey was carried out in July 2020. Following completion of that
survey, the Committee resolved (report G/22/45) to award 5 new taxi licences
in Perth to give effect to the survey’s recommendations. It was resolved that
new taxi licences granted should have a condition added to ensure that the
vehicles associated with the licences are Wheelchair Accessible Vehicles for
the whole duration of the licence. 
4. Current Considerations
4.1 Currently there are 80 taxi operator licences in Perth.
4.2 In August 2024, a further taxi demand survey was commissioned to establish
the current position regarding unmet demand and to assess whether there
had been any significant change since the 2020 Survey.
4.3 The survey was carried out according to best practice in this field. Data was
collected through consultation with stakeholders, the trade and members of
the public. In addition, observations of activity at taxi ranks were undertaken to
record volumes of taxis and passengers using each rank and whether any
passengers had to wait for taxis to arrive at the ranks. 
4.4 The survey commenced in August 2024 and has now been completed. The
survey is attached as Appendix A. The principal issues identified in the survey
are: -
4.4.1 Passenger waiting observed in 2024 was significantly greater than passenger
waiting observed in 2017 (pre-pandemic).
4.4.2 Disabled passengers and in particular wheelchair users continue to face
increased difficulties, over and above those faced by non-disabled
passengers. This is an issue that is repeatedly identified through previous
surveys.
4.4.3 If the limit is increased to allow a large number of new taxi licences to be
issued, it is also worth considering whether there is a realistic difference
between that and removing the cap altogether.
4.5 The conclusion of the survey is that there is a significant unmet demand for
the services of taxis in the Perth area. The survey recommends that the limit
on the number of taxis be increased by 24. The survey also indicates that the

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Council could consider removing the limit on taxi numbers given the significant
level of unmet demand.
It should be noted that historically, the Licensing Committee has agreed to
issue additional licences based on the recommendation in the unmet demand
survey without further consultation with the trade or the public. The increase in
the number of taxis in those instances was minimal with relatively limited
impact on the trade as a whole.
As either of the options set out in this report will have a significant impact on
the taxi and private hire trade in Perth City, further consultation with those
affected must be undertaken before a decision can be made about which
option the Council should adopt.
4.6 In addition to the outcome of the survey indicating that there is a significant
unmet demand for taxis, concerns have been raised by the public about the
lack of availability of taxis in Perth City. Consultation is therefore required to
determine the public’s view on the options available, and in particular to
assess whether the policy of limiting the number of taxis at the current level
remains necessary and proportionate and continues to serve the public
interest.
5. Proposal
5.1 The Committee is asked to request the Strategic Lead – Legal and
Governance to undertake a public consultation on either increasing the
number of taxi operator licences by 24, or removing the limit on taxi numbers
completely.
5.2 The consultation would be directed to existing taxi and private hire operators
and drivers as well as the public more generally.
5.3 The consultation would be conducted through the Council’s consultation hub.
5.4 The consultation would be brought to the public and stakeholders’ attention
through social media channels as well as direct attention being brought to
booking offices, taxi and private hire operators and drivers, trade groups, and
Police Scotland.
5.5 The findings of the consultation and recommendations on next steps will be
reported back to the Licensing Committee in due course.
6. Conclusion/Rationale for Recommendations
6.1 The Survey concludes that:
6.1.1 There is unmet demand for taxi services in Perth City.
6.1.2 The unmet demand for taxi services in Perth City is significant. This means
that there insufficient taxis to meet demand.

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6.1.3 This means the Council needs to consider either revising the limit or removing
it completely.
7. Impact Value Assessment
7.1 An Impact Value Assessment has been completed and is available online at:
https://www.pkc.gov.uk/article/24316/Impact-and-Value-Assessments
8. Appendices
8.1 Appendix A – Taxi Unmet Demand Survey