London’s black cab trade unite to appeal for Government support in upcoming Budget
In a coordinated effort, London’s taxi industry is calling on the Government to provide critical financial backing in the upcoming Budget.
Representatives from the trade have expressed concerns about the industry’s sustainability, as the number of black cab drivers in London continues to decline at an alarming rate. Over the last decade, the number of licensed taxis has dropped by 37%, with a net loss of around 1,000 drivers annually.
In a joint letter addressed to the Chancellor of the Exchequer and the Secretary of State for Transport, key figures from the taxi industry have outlined two primary requests.
The first is the extension of the Plug-in Taxi Grant (PiTG), which is currently set to end in April 2025. This grant has been vital in helping drivers transition to zero-emission vehicles (ZEC). As London strives to meet the Mayor’s net zero targets by 2030, the industry warns that without continued financial support, this transition could stall. The reduction in the grant from £7,500 to £6,000 has already resulted in a sharp decline in new ZEC taxi sales, making it increasingly difficult for drivers to afford these vehicles.
The second request is for the Government to extend the VAT exemption on adapted motor vehicles for disabled passengers to black cabs. London’s black cabs play a crucial role in providing accessible transport, especially for those with mobility issues. Unlike other modes of public transport, which are still lacking in accessibility, black cabs offer a reliable door-to-door service. However, the high cost of purchasing and maintaining these vehicles is putting additional pressure on drivers, threatening the future availability of accessible taxis.
Industry leaders warn that if these financial supports are not extended, the iconic black cab trade could face a further decline, affecting both drivers and passengers. With a significant proportion of the current fleet still reliant on fossil fuels, the industry is at a critical juncture, and urgent action is needed to ensure its survival.
The letter’s signatories, which include representatives from driver associations, unions, taxi manufacturers and taxi booking companies, are urging the Government to consider the long-term impact on London’s transport system. They argue that supporting the transition to zero-emission vehicles and ensuring accessible transport options will benefit both the environment and the public.
