The organisation said councils cannot take enforcement action against the rising numbers of taxi drivers licensed by other authorities operating in their area.
It said this is causing huge frustration to councils and local drivers who, depending on what the local rules are, may have had to comply with more rigorous licensing standards.
The organisation added that taxi and private hire legislation - some of which dates back to 1847 and horse-drawn hackney carriages - needs strengthening to improve passenger safety in light of the proliferation of app-based taxi and private hire vehicle (PHV) companies and increased cross-border hiring.
Professor Alexis Jay's report into CSE in Rotherham, which found that more than 1,400 children were abused between 1997 and 2013, said taxi drivers played a "prominent role" in the abuse.
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