Hackney Carriages and Private Hire Vehicles Section 53: Abolition of "contract exemption"
195.This section affects vehicles which provide a private hire service in England and Wales (outside London, and not in Plymouth) and which are currently exempt from licensing by virtue of section 75(1)(b) of the Local Government (Miscellaneous Provisions) Act 1976.
196.Section 75(1)(b) exempts from licensing any vehicle which is used only for carrying passengers for hire and reward under a contract for the hire of the vehicle for a period of not less than seven days. Accordingly, the driver of the vehicle and the operator (who arranges the hirings) are also exempt.
197.This section repeals section 75(1)(b) of the 1976 Act.  Unless other exemptions apply, vehicles which fall within the definition of "private hire vehicle" in section 80 of the 1976 Act will have to be licensed regardless of whether they are used for one-off hirings or hired on a ‘longer-term’ contract basis.