MP questions Minister about the impact should Government choose to axe Plug-in Taxi Grant this April
Labour MP Scott Arthur has pressed the Government on the future of the Plug-In Taxi Grant (PiTG), asking the Transport Secretary what assessment has been made of its impact on the uptake of ultra-low emission taxis.
In response, Transport Minister Lilian Greenwood confirmed that while the grant has supported the purchase of over 10,000 zero-emission capable taxis since its introduction in 2017, its continuation remains under review.
The PiTG has been a key driver in the transition to cleaner taxis, particularly in London, where over 60% of the fleet now consists of electric TX models manufactured by LEVC. However, the grant is set to expire on 5 April 2025, raising concerns about the financial barriers to adopting new vehicles.
Chris Allen, LEVC Managing Director, this week warned that ending the grant could slow progress in modernising the taxi trade. In a letter released on Friday, Allen highlighted the impact of government support on the industry, noting that the TX fleet has collectively driven over a billion miles and prevented 300,000 tonnes of CO2 emissions. He urged ministers to extend and ideally restore the grant to its previous level of £7,500, arguing that without continued incentives, the transition to cleaner taxis could stall.
The exchange in Parliament comes as London’s taxi numbers remain below pre-pandemic levels. The capital currently has around 14,500 licensed black cabs, down from 19,000 before Covid, and with 800 to 1,000 diesel taxis set to be retired this year, there are fears that new drivers will struggle to enter the trade without financial assistance.
While Greenwood reiterated that all grants are reviewed to ensure value for money, LEVC has pointed to schemes like Scotland’s ‘Switched on Taxi’ loan as examples of how targeted funding can support the industry. The company also hopes the upcoming Taxi and Private Hire Action Plan from Transport for London will provide clarity on future policy.
With 40% of London’s black cabs still running on diesel, MPs and industry leaders are calling for a clear government strategy to prevent the momentum of the transition from being lost.
Greenwood said: “The Plug-in Taxi Grant (PiTG) was introduced in 2017 to support the early market growth of zero emission capable (ZEC) taxis and has supported the purchase of over 10,000 vehicles of this type.
“The grant is funded until at least the end of the current financial year. All grants remain under review to ensure best value for the money for the taxpayer.”
