TAXI CONCERN: Is it now time for Government intervention to help keep taxi drivers on the road?

The London taxi industry has been grappling with a troubling decline in the number of licensed taxi drivers for years. This drop has raised alarm bells not just for the drivers themselves, but now also for the manufacturers of the iconic black cab.

Long-term, and most importantly, the passengers who rely on the capital’s most accessible form of public transport will be next to be impacted.

Central to this issue is the rising cost of wheelchair-accessible, zero-emission capable taxis, which threatens to undermine the industry’s future unless decisive action is taken.

The latest figures from Transport for London (TfL) reveal a concerning trend: fewer taxi drivers are renewing their licenses, leading to a steady decline in the number of black cabs on the streets. This reduction has hit the London Electric Vehicle Company (LEVC) particularly hard. LEVC, which manufactures the iconic black cabs, has seen its sales drop as fewer drivers are able to afford their vehicles. The company, which invested heavily in developing electric, wheelchair-accessible taxis, now faces significant market challenges.

The rising cost of these state-of-the-art taxis is playing a factor in the decline. While the shift towards zero-emission vehicles is essential for meeting the UK’s environmental goals, the financial burden on drivers has been substantial, especially those looking to work in the industry on a part-time basis.

A new top of the range electric taxi can cost around £70,000. With high interest finance attached to most sales, the vehicle is likely to cost more around the £100,000 mark -  a figure that is simply out of reach for many drivers.

This situation poses a serious risk to the availability of accessible taxis, which provide a crucial service to a wide spectrum of London’s community. For many, these taxis are the only viable form of public transport. The continued reduction in driver numbers will in turn lead to a significant decrease in the availability of vehicles, limiting the mobility of some of the most vulnerable members of society.

The question now is whether the Government should step in to provide support. Options could include grants, subsidies, low-interest loans or VAT exemptions specifically aimed at helping drivers purchase costly but essential public vehicles. Some of these initiatives are offered north of the border in Scotland, but support in England and Wales has been less forthcoming.

The current Plug-in Taxi Grant (PiTG) offered by government is on reduced terms and is seen as insufficient to bridge the gap between the cost of a conventional taxi and the significantly higher price of an electric model.

Without further intervention, the industry risks a downward spiral. As more drivers leave the profession due to financial pressures, manufacturers like LEVC may struggle to maintain production, potentially leading to a shortage of new vehicles that meet the longstanding requirements set by Transport for London (TfL) and in other licensing regions.

The future of London’s taxi industry—and the long-term accessibility of the city’s ground surface public transport —may well hinge on the new Government’s willingness to act and support.