Blackpool Council, R (on the application of) v Blacktax Taxis Ltd.

Under section 55(3) of the Local Government Miscellaneous Provisions Act 1976, a licensing condition must regulate the licence holder’s conduct by imposing a requirement, prohibition or other restriction. It cannot operate as a declaration that a general practice is lawful. The statutory appeal under section 55(4) arises only from refusal of a licence or the imposition of a condition. A person who is content with the conditions actually imposed has no appeal merely because the licensing authority has declined to grant a purported permissive declaration. Magistrates also cannot create an inferred criminal condition that is not expressed on the face of the licence.

Blacktax Taxis operated private hire vehicles and sought a licence condition stating that it was entitled to accept block bookings from corporate clients. Blackpool Council refused to impose the condition, while accepting that some block bookings could be lawful. On appeal under section 55(4) of the Local Government Miscellaneous Provisions Act 1976, the magistrates treated the refusal as an inferred prohibition and imposed the requested condition. They also ordered the Council to pay the respondent’s costs.

The Council appealed by way of case stated. The issues were whether the magistrates had jurisdiction, whether the condition was lawful and reasonably necessary, and whether the costs order was proper.

1. Appeal allowed. The magistrates’ order, including the costs order, was set aside. The Council received its costs of the appeal, assessed at £7,000.
2. Section 55(3) of the Local Government Miscellaneous Provisions Act 1976 permits conditions attached to an operator’s licence where they are reasonably necessary. A condition may require the licence holder to do something, prohibit conduct, or otherwise restrict operational freedom. The purported condition here did none of those things. It purported to declare the legality of accepting block bookings generally and therefore was not a condition within the statutory power.
3. The magistrates had no jurisdiction under section 55(4). That right of appeal applies to refusal of a licence or the imposition of conditions. Blacktax had not been refused a licence and was content with the conditions actually imposed. There was therefore no condition in respect of which it was aggrieved and no issue on which the appeal could operate.
4. The magistrates could not avoid that conclusion by treating the Council’s decision as imposing an inferred condition prohibiting block bookings. The Council’s decision did not have that effect. More fundamentally, an inferred condition is objectionable where breach may constitute a criminal offence and the supposed condition cannot be identified from the licence itself.
5. The underlying question whether the airport arrangement amounted to unlawful plying for hire under section 45 of the Town Police Clauses Act 1847 was not before the magistrates and was not decided by the court. The judgment expressed no view on its legality.

• Fylde Coast Magistrates’ Court: allowed Blacktax’s appeal against the Council’s licensing decision, imposed the purported condition and ordered the Council to pay £5,100 costs.
• High Court (Administrative Court): allowed the Council’s case-stated appeal and set aside the magistrates’ order.