The operation and licensing of taxis, hackneys, limousines and their drivers is currently controlled through the Road Traffic (Public Service Vehicles) Regulations 1963 to 2002. Under these regulations the fixing of a maximum taxi fare structure for a taximeter area is a reserved function of the relevant local authority.
Hackneys, as private hire vehicles, are not subject to fare controls imposed under the public service vehicle regulations. In the case of taxis, the fare is generally established at the end of the hire by reference to the taximeter and any other legal charges. However, in the case of hackneys, the fare should be agreed on a private hire basis in advance as the hire should not involve the vehicle either standing or plying for hire. Accordingly, it is a matter for the person hiring a hackney to agree the fare for a journey in advance, including the manner of its calculation.