Company Debt warns of ‘SPATE OF INSOLVENCIES’ as taxi tariffs struggle to keep up with fuel costs

A ‘spate of insolvencies in the taxi sector may be imminent’ was the warning from a leading insolvency business should the cost of living crisis bite further into the taxi industry.

Research conducted by Company Debt suggested tariffs are not rising fast enough to cover the rapidly rising costs facing taxi drivers throughout the UK.

In their report, the debt specialists say taxi drivers face paying up to £6,000 more in fuel this year due to high petrol and diesel costs.

David Lawrie, Director of the National Private Hire & Taxi Association, said: “The taxi industry is experiencing multiple challenges at the moment: COVID recovery, rising fuel costs and also a massive hike in vehicle cost.

“This is going to get a lot worse.”

According to TaxiPoint’s own fuel analysis, the cost of running the popular LTI TX4 taxi leapt by £6.38 for every 150-miles travelled. The TX4 uses 20.55 litres to travel 150-miles per shift now costing £37.20 a go according to date taken in early June.

Steve McNamara, General Secretary of Licensed Taxi Drivers’ Association (LTDA), said: “Fuel is the largest part of your daily running costs.

“If your running costs are up 20-25%, it starts to bite.”