Not just phones though.
It's handheld electronic devices, does include the likes of SatNavs.
Ignoring for the present, driving without due care, dangerous driving etc. and referring SPECIFICALLY to the law brought in to combat handheld mobile phone use (and other handheld devices), provided the device is FIXED to the VEHICLE it may be used. I'm not suggesting reading text messages, but hands free phone kits - not brilliant, but better than using one hand to hold a phone to one's ear. (My employers have a 'no mobile phone use' in vehicles policy, for anyone driving - we're supposed to switch phones off. It's always useful when a Manager says "Why didn't you answer your phone?"

).
A communications radio, one may use a handheld microphone, provided the radio is fitted to the vehicle - we have the Radio Society of Great Britain to thank for that amendment, realising that use of amateur radio mobile would vanish - but it also applies to emergency service vehicles. If that exclusions amendment had not been applied, emergency services drivers would not legally be able to use their radio equipment while on the move! (I'll try to find an online link to the exclusions list later - I have a printed copy with my radio logbook). As for the Airwave digital portables (Tel... whatever they are) which we see on the TV police progs clipped to shoulder straps - a No No under the law - if they are placed in the vehicle holder, no problem.
The law was yet another example of kneejerk reaction to a problem (yes, it is still a problem), but there are (and were at the time) sufficient laws to cover the issue.
I run mobile (amateur) radio in vehicles. They are fixed to the vehicle. Remote microphones either on a neckband or an extension from sunvisor, nothing to hold - both hands on the steering wheel. A PTT switchbox fitted to the dash, or gearlever, mean not having to hold a button down while talking (going back to those TV police shows again). Switching between transmit and receive takes less time than changing gear (particularly in the 90!

) I use the radio on the move, where it is safe to do so (which is getting rarer with the number of muppets out there). As a simplex radio system, it's not the same as mobile phones.
(Bit disjointed, sorry - it's early and my workshop server has just fallen over...)
Cheers,