CHANCELLOR WARNED: Ride-hail giants Bolt freeze £200m UK investment due to ongoing ‘Taxi Tax’ uncertainty
Ride-hailing firm Bolt has halted up to £200 million in UK investment over the past three years, blaming Government inaction and confusion surrounding a proposed VAT change on private hire fares.
In a letter to the Chancellor, Bolt warned that the tax plan – which would see 20% VAT added to all private hire fares outside of London – threatens to push up costs for millions of passengers and hit more than 265,000 self-employed drivers.
The Estonian-based platform, which handles millions of weekly journeys in Britain, said the move risks making services less accessible and unaffordable, especially for low-income and vulnerable passengers in rural or isolated areas.
Bolt says nearly half of adults outside London would struggle with fare increases linked to the tax. The firm also cautioned that drivers face reduced earnings as demand drops and operators come under pressure.
The company’s letter pointed to a growing risk of inconsistency in how VAT is applied across the UK. It says current differences in business models and local interpretations of tax law have already created disparities. Without a clear, national approach, this could lead to what Bolt calls a “postcode lottery” for VAT in the sector.
Bolt’s decision to withhold significant funding reflects broader concerns about regulatory uncertainty in the UK’s ride-hailing industry. The company is urging the Government to provide clarity and reconsider the economic impact of extending the VAT regime beyond the capital.
Emily Dalton, Head of UK Operations at Bolt, said: "The continued uncertainty over VAT on private hire journeys is harming the UK’s economic growth - holding back vital investment and innovation in the UK. The private hire industry is a key part of the UK’s transport network, relied upon by millions of people every week. If the Government presses ahead with this ‘Taxi Tax’, it will drive up fares, reduce transport options, and hurt those who depend on these services the most.”
