Taxi fares to jump 5% across Aberdeenshire as operator warns fleet has already plunged by 25 vehicles

Taxi passengers across Aberdeenshire are set to pay higher fares after councillors approved a 5% increase across the local authority’s regulated taxi fare scale.

The decision was taken by Aberdeenshire Council’s Licensing Sub-Committee on 28 August following consultation with the taxi trade and public. The increase is expected to take effect after the statutory appeal process. Council consultation documents had originally scheduled implementation for 1 October if no appeals were received.

The increase means the standard starting fare for the first 880 yards will rise from £3.15 to around £3.31. The late-night starting charge will increase from £4.50 to £4.73, while the festive tariff will move from £4.85 to £5.09. Waiting time is also set to increase from 12p to 13p for every 10 seconds, with the standard booking fee moving from 50p to 53p.

The decision followed calls from within the taxi trade for a substantially larger increase. Central Taxis owner Paul Anderson urged councillors to approve a 10% rise, arguing that operators were facing significant increases in the cost of remaining on the road.

Anderson told the committee that Central Taxis had previously operated around 100 taxis from bases including Peterhead, Ellon and Inverurie, but its fleet had fallen to approximately 75 vehicles over the past two years. He cited insurance, fuel, vehicle costs, minimum wage increases and licensing fees among the financial pressures affecting the business.

He said: “The idea of having no increase to our fare scale for a further two years is absolutely ludicrous, given that every industry is facing significant costs to continue operating.” He added that the cost of operating taxis was “colossal” and warned that Aberdeenshire could see vehicle availability fall further without sufficient fare increases.

Licensing costs have also increased. According to evidence presented to councillors, a one-year vehicle licence has risen from £237 to £265, while the cost of a taxi driver badge has increased from £135 to £200. Anderson argued that a 10% fare increase was required to keep the sector sustainable as operating costs continued to rise.

Councillors faced the familiar licensing challenge of balancing driver and operator viability against passenger affordability. Inverurie councillor Marion Ewenson raised concerns that higher fares could deter passengers, particularly at a time when household budgets remain under pressure.

However, the availability of taxis was also central to the debate. Anderson said his company’s fleet had already reduced by 25 vehicles and warned that without fare increases matching rising costs, the number available to passengers would continue to fall.

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Councillor Jim Gifford also linked the future of the taxi sector to wider reductions in subsidised public transport. He told the meeting that councils were reducing subsidised bus services because of financial pressures, leaving taxis as an increasingly important part of the transport network in communities where other options are limited.

A proposal for the 5% increase was ultimately approved by five votes to three. A higher 10% increase had also been advocated during the debate, but councillors opted for the smaller rise. The festive weekend tariff will remain in place for the time being and is due to be reconsidered during the next pre-consultation process.

The decision follows a formal review process launched earlier this year. Aberdeenshire Council regulates the maximum fares that licensed taxis can charge, although operators remain free to charge passengers less than the metered maximum. The authority is required to review maximum taxi fares within an 18-month period.