Government rules out mandatory fare tariffs or meters for private hire vehicles outside London
- Perry Richardson
- 2 hours ago
- 2 min read
The Department for Transport has confirmed it will not consider mandatory fare meters for private hire vehicles (PHVs) operating outside London.
The response comes after Labour MP Lorraine Beavers questioned the potential merits of introducing a meter requirement to bring consistency to PHV pricing.
In reply, Simon Lightwood, Minister Department for Transport (DfT), said local licensing authorities already have powers to regulate maximum fares for taxis operating within their areas. This control supports customer protection in cases where passengers hail a vehicle directly, such as at ranks or on the street.
However, PHV fares work differently. These vehicles must be pre-booked and pricing is determined by the operator, not local councils. This market-driven model, the Department argues, encourages competition based on price and service quality.
Meters are allowed in PHVs outside London, but they must reflect the operator’s specific tariff. Lightwood warned that mandatory meters could restrict driver flexibility, limit operator choice, and potentially reduce vehicle availability for passengers. Drivers often work with multiple operators, and a single metered tariff could undermine that flexibility.
The Government said there are no plans to change the current system, favouring market choice over enforced uniformity.
Lightwood said in a written response: “Licensing authorities have the power to set maximum taxi fares for journeys within their area. Regulated fares provide an important element of customer protection in the rank and hail market where passengers do not have a choice over which vehicle they hire. A uniform set of tariffs enables taxi meters to be used to ensure taxi fares are accurately calculated.
“Licensing authorities have no power to set fares for private hire vehicles (PHVs). Fares for PHVs, which must be pre-booked with a licensed operator, are set by the PHV operator. The competitive pre-booked market allows PHV operators to compete on price as well as other factors such as quality of service.
“Apart from in London, meters can be fitted to PHVs and these would need to reflect the relevant PHV operator’s tariff. As different PHV operator tariffs may vary this could have the effect of restricting the range of operators which drivers could work with. Mandating the fitting of meters in PHVs would reduce the flexibility in the PHV sector and potentially affect the availability of vehicles for passengers and the way in which drivers can work to maximise their earnings.”
