From the 1st January 2008, all UK limousine operators will be legally bound to ensure that their limousines are licensed to operate for hire or reward. In a nutshell, this means that they will have to apply for a Private Hire Licence for their business and limousines through their local authority if they are outside London, or through the Public Carriage Office (PCO) if their business operates within the Greater London area. Alternatively, they must apply for Bus Operators Licence which is issued through their local Traffic Commissioners. There several types of Licence available from the Traffic Commissioners, but most limousine companies will probably not be able to comply with the requirements of the 'O Licence' of 'Restricted Licence'.

The need to licence a limousine and the business is no longer and option and no limousine company can claim to have been denied the opportunity to ready themselves to take account of the new legislation, because the implementation has been delayed for close to 18 months. It is likely that VOSA enforcement officers, the Police, local authorities and the PCO will start to make their presence felt from 1st January 2008, with a view to prosecuting any limousine companies that are operating without an appropriate licence, this could also result in the prosecution of the chauffeur, so the consequences of failing to comply are likely to be quite dire.

Limousine companies that already have the appropriate licenses are likely to be very happy with the introduction of The Road Traffic 2006. Not least because many have argued that there should be a "level playing field" for all, and that those that have taken the time, trouble and expense to licence their operations for Hire or Reward, have in the past, been heavily disadvantaged by those operators that have not had to take account of the expense involved in meeting the licensing obligations.

In terms of the public, provided the enforcement agencies get their act together and enforce, they will be afforded the same protection that they benefit from when hiring a licensed minicab. Regular and tough checks on the vehicles (every 6 months for Private Hire, or more regularly for Bus Operators) and medical, as well as criminal records bureau checks on the chauffeurs. In theory at least, there will indeed be a level playing field and the industry will be better regulated.