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How are taxi tariffs proposed and set by local authorities?


Image credit: LEVC

The process for implementing taxi fare increases involves several key steps, primarily regulated by the local councils responsible for the area where the taxis are licensed. The process is designed to ensure that fare changes are fair, transparent, and reflective of the economic conditions affecting the taxi industry.


Proposal Submission: The process typically starts with a proposal for a fare increase, which can be initiated by taxi associations or individual operators. This proposal is submitted to the local council with jurisdiction over the area.

Review and Consultation: The council reviews the proposal, considering various factors like inflation, operational costs, and market conditions. This stage often involves consultations with stakeholders, including taxi operators, drivers, and the public, to gauge the impact and necessity of the proposed changes.


Public Notice and Feedback: Once a proposed fare increase is considered, the council publishes a public notice detailing the changes. This notice period allows for public feedback and objections. The duration of this period can vary but is typically set for a few weeks.


Consideration of Feedback: After the public notice period, the council reviews all feedback and objections. This step is crucial as it ensures that the decision-making process takes into account the views and concerns of both the industry and the public.


Approval and Implementation: If the council decides to proceed with the fare increase after considering the feedback, the new rates are formally approved. The council then sets a date for the new fares to come into effect.

Communication and Enforcement: The council communicates the new fare rates to all relevant parties. Taxi operators are required to update their meters accordingly and ensure that the new fares are clearly displayed for passengers.


Monitoring and Adjustment: Post-implementation, councils typically monitor the impact of the fare increase, making adjustments if necessary based on operational realities and feedback.


It's important to note that each local council may have variations to the procedure and criteria for considering taxi fare increases. However, the overarching goal is to balance the financial sustainability of taxi operations with affordability and fairness for passengers.

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