COULD IT HAPPEN? Manchester taxi grant scheme sets benchmark for potential future black cab support in London
- Perry Richardson
- 4 minutes ago
- 3 min read
Senior figures within London’s taxi trade are pointing to Greater Manchester as a practical working template for supporting black cab drivers through the transition to zero emission vehicles, after fresh early signals from City Hall and Transport for London (TfL) that a comparable scheme could be developed in the capital.
The Manchester scheme, delivered through the regional clean air and transport funding framework, offers licensed hackney carriage drivers a direct capital grant towards the purchase of a new or used electric taxi like the LEVC TX or Ford MAXiCab. In its most generous form, the package can exceed £12,000 per vehicle once core grants and local top-ups are combined, materially reducing the upfront cost of switching from diesel.
Under the model, drivers purchasing a new compliant cab are able to access grants worth up to £12,560, with additional support available like access to subsidised charging infrastructure. Crucially, the funding is paid directly against the vehicle cost rather than through complex tax mechanisms, keeping the process straightforward for owner-drivers.
The higher purchase price for electric taxis compared with legacy diesel cabs has been one of the biggest barriers to fleet renewal. Manchester’s grant effectively closes much of that gap, while lower running costs from electricity, reduced maintenance, and exemption from clean air charges improve long-term economics. For many drivers, the combined benefit runs well beyond the headline grant figure over the life of the vehicle.
Greater Manchester’s electric taxi funding model shows how targeted grants of more than £12,000 can extend careers, stabilise supply and accelerate fleet renewal.
Any new scheme will be particularly significant for older drivers and those approaching retirement. Many drivers in the latter stages of their careers are reluctant to take on large finance agreements for a new cab, especially if they intend to reduce hours over time. A grant of more than £12,000 lowers borrowing requirements, shortens repayment periods and makes it viable to remain in the trade on a part-time basis without carrying unsustainable debt.
This aims to help Manchester retain experienced drivers who might otherwise have exited the industry altogether. From an operational perspective, that stabilises taxi availability and modernises the taxi fleet.
London trade leaders believe a similar outcome could be achieved in the capital if City Hall and TfL replicate the Manchester approach.
Steve McNamara, General Secretary of the Licensed Taxi Drivers’ Association, has claimed there is growing political backing, including from Deputy Mayor for Environment and Energy Mete Coban and Deputy Mayor for Transport Seb Dance, alongside senior TfL leadership such as Transport Commissioner Andy Lord and chief operating officer Claire Mann.
If adopted in London, a grant at Manchester levels would materially change the equation for thousands of drivers facing the cost of replacing ageing vehicles. For some cabbies it could mean staying licensed and exiting the trade on their own terms rather than being forced out by capital costs. For the industry, it would slow attrition, protect service levels and help the transition to a fully zero emission black cab fleet.
McNamara said in TAXI Newspaper: ”The likely win is something that I am increasingly optimistic about. There is the possibility of some sort of funding from City Hall and/or Transport for London (TfL) towards the cost of a cab.
“Hopefully it’ll be similar to the scheme recently launched in Manchester, where a sum of money in the form of a grant is given towards the price of a new or used TXE. This is something we have been campaigning on for a very long time.
“The difference is that we now have someone championing our cause in the shape of the Deputy Mayor of London for Environment and Energy, Mete Coban, who has gained the support of the Deputy Mayor for Transport, Seb Dance, and possibly the Mayor himself.
“Andy Lord, the Transport Commissioner, and Claire Mann, the Chief Operating Officer, effectively the top two people at TfL, are also trying to make it work.
“With this kind of support it really could happen, so watch this space.”
