The Council is prevented by law from issuing (or renewing) a drivers' licence unless the applicant can be shown to be a "fit and proper person". They clearly cannot come to that view in view of your inaction in respect of a legal requirement. Instead of using your efforts to try to show that the Council is wrong, why not try to sort these things out well in advance of them becoming a problem. I am surprised that you have placed such a low priority on what you know to be necessary to protect your livelihood. As a council licensing lawyer, I am aware that a large number of taxi drivers keep an old copy of their driving licence which they have declared to be lost in order to obtain another one. If they obtain driving convictions or are disqualified through, eg. drink driving, they just show the old "clean" one to the Council to pull the wool over their eyes. One taxi driver in my area has received 19 duplicate licences in 10 years. The Council is just requiring you to prove that you have recently had your details updated by DVLA to ensure that you are not pulling the same trick..