Mayor of London backed VAT exemption for wheelchair accessible taxis
- Perry Richardson
- Mar 9
- 2 min read
The Mayor of London confirmed his support for extending the VAT exemption on wheelchair accessible taxis, urging the Government to take action.
Sir Sadiq Khan responded to questions in the London Assembly, reaffirming his commitment to ensuring fair financial support for cab drivers investing in new zero-emission capable (ZEC) vehicles.
Elly Baker, London Assembly Member, asked what lobbying efforts had been made to extend the Plug-in Taxi Grant, which has now been extended to April 2026, and to push for VAT relief on purpose-built wheelchair accessible taxis.
The Mayor stated that his Deputy Mayor for Transport had already written to the Minister for the Future of Roads, Lilian Greenwood MP, and at the time of writing, was due to meet her to discuss the Plug-in Taxi Grant.
On VAT exemption, he confirmed that the taxi trade had been encouraged to raise the issue directly with HM Treasury, with City Hall offering support in relevant discussions.
The move is seen as a key step in keeping the cost of purpose-built taxis down and ensuring that accessible, environmentally friendly vehicles remain viable for London’s licensed drivers.
The Mayor of London said: “I have always been clear that the Plug-in Taxi Grant provides taxi drivers with vital financial support to support the upfront costs of a new zero emission capable (ZEC) taxi.
“My Deputy Mayor for Transport wrote to the Minister for the Future of Roads, Lilian Greenwood MP, in 2024, and is planning to meet with her in the coming days to discuss the Plug-in Taxi Grant. Separately, my officers meet with the Office for Zero Emission Vehicles on a regular basis to discuss the importance of this grant for London’s taxi trade. We have asked the taxi trade to raise issues of VAT directly with HM Treasury, which we will support in any relevant conversations.“
