MAYOR’S ACTION PLAN AND TAXI GRANTS: Uncertainty looms over taxi industry, says London taxi General Secretary
The new year has arrived with pressing concerns for the taxi trade, according to Steve McNamara, General Secretary of the Licensed Taxi Drivers’ Association (LTDA). As lobbying efforts intensify, the industry is waiting for two key decisions: the details of the Mayor’s new Taxi Action Plan and the future of the Plug-in Taxi Grant (PiTG), which is set to expire at the end of March.
McNamara revealed he has been in discussions with senior figures at Transport for London (TfL), including Transport Commissioner Andy Lord, Deputy Mayor for Transport Seb Dance, and Chief Operating Officer Claire Mann. The Taxi Action Plan remains the primary focus. While some reassurances have been given, concerns remain over full access for taxis and whether funding can be secured for initiatives such as a scrappage scheme or an interest-free loan system similar to the one available to cab drivers in Scotland. Without such financial support, many cabbies may struggle to replace older vehicles, potentially reducing fleet numbers further.
Another key issue is the PiTG, currently set at £6,000, down from its previous £7,500. With interest rates remaining high, McNamara warns that losing the grant would significantly increase the cost of purchasing a new taxi. To push the case for an extension, he has engaged with key government figures, including Minister for Local Transport Simon Lightwood MP and civil servants from the Office for Zero Emission Vehicles (OZEV).
With 60 per cent of London’s taxi fleet already operating as low-emission vehicles, McNamara argues that continued support is essential to complete the transition. As discussions continue, the industry is waiting for clarity on whether these measures will be implemented or if cab drivers will be left facing greater financial challenges in the months ahead.
McNamara said in TAXI Newspaper: “2025 has started with a lot of unknowns for the trade, which means a lot of lobbying and meetings on our part to try to get the results we need. Our two major concerns are what will be in the Mayor’s new Taxi Action Plan, and will the government extend the Plug in Taxi Grant (PiTG) beyond the end of March?
“Following on from meeting Andy Lord, the Transport Commissioner, Seb Dance, the Deputy Mayor for Transport and Claire Mann TfL’s Chief Operating Officer in December, during which the Taxi Action Plan was top, middle and bottom of the agenda, I met with Seb again last week at an event for an update from him and TfL. I reiterated how crucial it is that the new plan delivers what we need to enable us to continue to provide the best taxi service in the world.
“I was reassured on some things, but I am far from confident that we will get the commitment on full access or that TfL will be able to secure the funding to either resurrect some kind of scrappage scheme or introduce an interest free loan scheme, similar to that currently available to cabbies in Scotland. It’s only this type of funding that will enable many cabbies to replace older cabs due to come off the road and ensure our numbers do not drop any further.
“The other factor that is crucial to keeping the price of a cab down is the PiTG, it’s currently only £6,000, down from £7,500, but with interest rates the way they are, if we lose it, the increase cost on a new cab will be significant. To reinforce the arguments that we have made in letters and through various MPs, I met the Minister for Local Transport, Simon Lightwood MP and took the opportunity to stress to him how important it is that we retain the PiTG.
“I was able to follow this up when I met the Civil Servants from the Office for Zero Energy Vehicles (OZEV) to 5 ensure that they were aware of the progress we have made in getting 60 per cent of London’s taxi fleet green and clean but that the PiTG remains crucial to enabling more cabbies to upgrade and to finish the job.”
