Fareham Taxi Tariff Review: Balancing costs and service sustainability with a 10% increase
Fareham Borough Council is deliberating potential changes to its Hackney Carriage tariff, the first such review since September 2022.
A proposed 10% fare increase, submitted by the Fareham Taxi & Private Hire Association, is at the heart of the discussions. This proposal reflects rising operational expenses and an urgent need to attract new drivers to the trade.
Current Tariff and the Proposed Changes
The current tariff begins at £3.00, covering the pull-off and the first 180 metres of a journey. An additional 20p is charged for every subsequent 170 metres, meaning a five-kilometre journey costs approximately £8.60. The Association’s proposal includes a fare adjustment that would see a 10% rise in fares for a typical two-mile trip, alongside an increase in the soilage charge.
This proposed adjustment has gained strong support from the local trade. A consultation carried out by the Licensing Team between 20 September and 11 October 2024 received a 17% response rate from licensed vehicle proprietors. Of the respondents, 85% supported the proposal, citing the escalating costs of living and running a taxi service, particularly with fuel, insurance, and vehicle maintenance expenses continuing to climb. However, 15% argued that no change was necessary, especially given recent reductions in inflation and transport costs.
Economic Pressures and Industry Challenges
The consultation takes place amid mixed economic signals. Inflation has dropped to 2.6%, while transport costs have seen a significant 2.4% year-on-year reduction, their largest annual fall since 2015. Despite these figures, other economic factors tell a different story. Rising costs of essentials like food and housing have placed significant pressure on household budgets and small businesses alike.
For the local taxi trade, the financial squeeze has led to a notable decline in new licence applications. Fareham Borough currently licenses 115 Hackney Carriage vehicles, supported by 93 Hackney Carriage drivers and an additional 49 dual-licence holders. However, many drivers have left the trade for more lucrative employment opportunities, and retirements have further depleted driver numbers.
The shortage of taxis has sparked concerns about service reliability, particularly for vulnerable passengers who rely on Hackney Carriages for accessibility. The Association argues that fare increases are essential to making the profession more viable for new entrants, thereby ensuring an adequate level of service across the borough.
Fareham’s current tariff is broadly comparable to those in neighbouring areas such as Gosport, Eastleigh, and Havant. However, regional differences in living costs, operational expenses, and local demand for taxis mean that any direct comparison must be approached cautiously. The proposed increase would help align Fareham’s rates more closely with those of nearby authorities.
The Licensing and Regulatory Affairs Committee is tasked with reviewing the consultation results and the Association’s proposal before making a recommendation to the Council’s Executive. Should the Executive endorse a tariff change, the decision will be subject to a statutory public consultation. Members of the public will have an opportunity to provide input, with feedback reviewed before any final adjustments are implemented.