Decision

1. 1

Hackney Carriage trade representatives and licence holders requested a review of Hackney Carriage fares, together with the introduction of a temporary fuel surcharge, in response to rising fuel costs.

Members received a report of the Executive Director Neighbourhood Services  considering those requests, including the supporting evidence and rationale, and seeking approval to proceed with the implementation of a surcharge and to delay a full review of fares until later in the year, subject to the outcome of the statutory consultation and provided no objections were received.

1. 2

RESOLVED UNANIMOUSLY: That the Environmental Services and Regulation Policy Committee;

a)    Notes the request made by trade representatives and amend Hackney Carriage Fares.

b)    Introduces a temporary fuel surcharge to Hackney Carriage fares, as set out in the table at paragraph 2.1 of the report, to end on 29th November 2026 unless extended following the review described at Recommendation 3.

c)    Notes that a full review of Hackney Carriage fares will be undertaken in late 2026.

1. 3

Reasons for Decision

1. 3.1

The proposed decision ensures that Hackney Carriage fares remain fair, reasonable and evidence-based, reflecting increased operating costs while following the statutory consultation process. It supports the continued viability of the Hackney Carriage sector, helps maintain service provision for residents, and aligns with the Council’s regulatory and public protection responsibilities.

1. 4

Alternatives Considered and Rejected

1. 4.1

Alternative Option 1:

Retain Current Fares

Under this option, no changes would be made to the current Hackney Carriage fare structure, and no fuel surcharge would be introduced.

While this option avoids any increase in costs to passengers in the short term, it does not account for the significant increases in operating costs faced by licence holders. This could risk undermining the financial viability of the Hackney Carriage trade and may result in reduced service availability.

This option is therefore not recommended.

1. 4.2

Alternative Option 2:

Permanent Fare Increase Only

This option would involve an amendment to fares without the introduction of a temporary fuel surcharge.

While this approach would provide greater long-term certainty, it is not recommended as it does not allow for flexibility in responding to fluctuations in fuel prices and may result in fares being set higher than necessary should fuel costs decrease.

The Council has committed to undertaking a full review of Hackney Carriage fares later in the year, in consultation with the trade. However, officers consider it necessary to respond to the immediate financial pressures currently being experienced, particularly in relation to rising fuel costs. In this context, the introduction of a temporary, variable surcharge is considered a more proportionate and responsive approach, ensuring fares more accurately reflect prevailing operating costs over time.