LTDA MEMBERS SPLIT: Taxi drivers divided on support for Spring 2023 11.64% London tariff increase

Image credit: LEVC

Members of London’s biggest taxi association are split on whether to support the proposed Spring 2023 taxi tariff increase which could total 11.64%.

The annual fare increase for London’s licensed taxi drivers is applied, where appropriate, in April, however the work to prepare for this begins much earlier. Multiple calculations are completed to understand what increase, if any, should be considered and Transport for London (TfL) makes the final decision via its Finance Committee.

As part of this process, decision makers look at both a 'cost basket' of various items, such as the price of fuel, insurance and vehicles, as well as outside factors such as average earnings. The calculations show the figure for next year's potential increase would be 11.64%. This is comprised of an average wage increase of 4.02% and taxi operating costs increase of 7.61%.

The Licensed Taxi Drivers’ Association (LTDA) conducted a survey of members to get their views on taxi fares and tariffs to understand what members would like to see and feel would be appropriate in the current climate. Over 2,000 drivers responded to the survey conducted between 12 and 26 September. The results reveal a few points of clear agreement amongst respondents, as well as some clear lines of division on how to proceed.

Most crucially members from the LTDA responding to the survey were split down the middle on whether the full 11.64% increase should be applied.

51% of respondents felt that the full increase should not be applied to fares next April, whereas 49% believed the whole increase should be applied.

The 51% of respondents who stated that they do not believe that the full 11.64% increase should be applied were then asked what level of increase, if any, they believed should be applied next April.

Over three quarters of these drivers agreed there should be an increase just at a lower level.

There was less agreement amongst this group on the level of increase. Just over half of these people (51%) favoured applying the taxi operating costs increase of 7.61% instead of the full 11.64%, nearly a quarter felt that the average wage increase of 4.02% would be the more appropriate option.