In 2016 Transport for London (TfL) commissioned an independent review into taxi fares and tariffs.
The review looked at a number of areas, including:
• Whether taxi fares were set at the correct level
• How the supply of and demand for taxis varied across the different tariffs
• If the Cost Index was still relevant when reviewing taxi fares and tariffs
• Whether new arrangements for journeys to and from Heathrow Airport should be introduced.
The recommendations of the review were publicly consulted on in early 2017. Information about the review and subsequent consultation is available here.
The responses to the consultation were considered by the TfL Board on 29 March 2017.
The following changes will come into effect on Saturday 3 June 2017:
• An increase to Tariff 1 of 3.7 per cent
• An increase to Tariff 2 of 3.9 per cent
• An extension of the fuel charge arrangements in the event of a significant increase or decrease in the price of diesel.
Taxi vehicle owners should make arrangements to have their taximeters updated from Saturday 3 June 2017.
There is no change to the minimum fare, Tariff 3 or the tariff rate for journeys over six miles.