FREENOW urges new Labour government to focus on private hire VAT treatment and black cab vehicle costs

In a decisive day in British politics, the Labour Party has clinched the 2024 General Election. With a clear mandate, the new Government faces significant challenges and opportunities, particularly in the taxi and private hire vehicle (PHV) sector.

Sam Pooke, Senior Public Affairs Manager at FREENOW UK, extended congratulations to Labour on their electoral success and highlighted pressing issues in the taxi industry that require immediate attention.

One key concern is the VAT treatment for private hire journeys. Pooke emphasised the need for a fair and balanced regime that ensures a level playing field across the industry. The operator suggests the adjustment is critical for maintaining competitiveness and fairness among taxi operators.

Pooke also called for collaboration with the Mayor of London to address longstanding challenges. The decline in the number of black cab drivers is a pressing issue. Additionally, the high cost of electric vehicles (EVs) remains a significant barrier to the industry's progress.

Pooke said: “On behalf of FREENOW, we would like to congratulate the Labour Party for winning the 2024 General Election. The newly elected Labour government has a lot of work to do when it comes to VAT treatment for private hire journeys to ensure the regime is fair and there is a level playing field across the industry.

“We encourage the new government to work closely with the Mayor of London to tackle existing challenges in the taxi sector, particularly reversing the declining number of black cab drivers and the high cost of EV vehicles to ensure this iconic trade can thrive and continues providing its outstanding service to Londoners and visitors.”