Purpose

To review the table of
fares (tariff) for Hackney Carriages to enable a sustainable income
for drivers, future investment in vehicles and to clearly set rates
that minimise opportunity for overcharging or confusion.

Decision

That the proposed
amendments to the Hackney Carriage Tariff as set out in the
submitted report be approved and the Director of Adults and
Community Services be instructed to carry out the public
consultation as set out in the prescribed process under Section 65
of the Local Government (Miscellaneous Provisions) Act 1976.

Reasons for the decision

The Tariff was last
reviewed in March 2022 and prior to this the Tariff had been
updated in October 2019.
 
Since the last review,
the consumer price index (CPI), which represents inflation through
the change in the cost of living, had remained high. Inflation had
fallen significantly since it reached 11.1% in October 2022, which
was the highest rate for 40 years. 
However, the prices were not falling, they were just rising less
quickly.  Inflation had remained above
the Bank of England’s 2% target partly because of high energy
and food prices.  The price of fuel
peaked in June 2022 at 191.1 pence for Petrol and 198.96 pence per
litre of diesel but had reduced to its current price of 149 pence
for petrol and 155.7 pence for diesel.
 
The drivers of
inflation such as energy, fuel, food and consumer goods along with
the impact on the economy from world events such as the Covid-19
pandemic and the world conflicts had continued to hit all business
sectors hard, not least the taxi trade. 
In addition, direct overheads, such as vehicle replacement,
servicing and insurance were also significant cost factors for the
trade.  The general hospitality and
evening and night-time economy trade had also not fully recovered
since the pandemic due to the cost-of-living crisis and the ongoing
impact that the trade would experience financially was
uncertain.
 
The Table of Fares
(Tariff) should be set to enable sustainable income for drivers,
future investment in vehicles and to clearly set rates that
minimise the opportunity for overcharging or confusion.

Alternative options considered

The alternative
options were to further amend the proposed amendments or reject the
proposed amendments.  These options were
discounted in order to strike a balance between the legitimate
right of the trade to a viable and sustainable livelihood and the
needs of the travelling public to have a safe and affordable
service.  The cost-of-living crisis had
hit the taxi trade hard most notably through the escalating vehicle
purchase, maintenance and fuel costs. These costs were no longer
absorbed through the existing Tariff. 
If the fares were not increased on a regular basis in line with
inflation, then many potential drivers would be discouraged from
entering or staying in the trade, leading to a shortage of supply
and a decline in the quality of the service.