Inflation and rising running costs could see London taxi fares rise over 11% next Spring according to latest cost index pricing used to calculate taxi fares.
A mixture of high fuel prices, rising vehicle costs and rapidly rising inflation levels, are driving the increase as the annual taxi fares review process begins to take shape.
The last fares increases was approved on 9 March 2022, when the TfL Finance Committee met to approve a new black cab taxi tariff to help cabbies meet rising costs.
In Spring 2022 taxi fares in London increased 5.51% during daytime tariff rates in a bid to help the industry cover rising fuel and running costs. Black cab prices between 10pm and 5am were frozen, but amendments to the starting meter rose by 60p across all tariffs.
The committee were however concerned that if fuel prices continued on its rapid growth the tariff increases agreed could be ‘overtaken by events’. The panel agreed to review and report on how fuel costs are impacting the taxi industry in six months time.
The rate of inflation currently sits at 10.1 percent and the cost of fuel and electric has risen rapidly since the London tariff consultation was concluded on 2 February 2022.
The next tariff adjustment is due in Spring 2023 and the process of consultation has begun this month. Various costs can affect the taxi tariff. This includes the price of fuel, insurance, vehicles, and outside factors such as average earnings.
The calculations show the figure for next year's potential increase currently sits at around 11.6%. Inflation between now and Spring 2023 is widely expected to continue to rise, however the recent news that domestic fuel prices will be capped will help.
Taxi tariffs across the UK have been reviewed thought the year. Just this month taxi drivers in Milton Keynes were granted a 20 percent fares increase which applied to the daytime tariff charged by black cabs. Night time and other special rate tariffs were set at 10 percent.
Taxi tariffs are also rising for a SECOND TIME in the same year as councils struggle to keep up with rising costs and inflation.
Wealden District Council’s Licensing Committee are mulling over proposals to increase fare prices offered by the authority’s licensed taxi drivers, by just under ten percent. That comes just months after an initial 10 percent increase in May. The new tariff is expected to arrive in October.