Redditch taxi licence fee increases face industry backlash over costs and risk of drivers shifting to rival authorities
- Perry Richardson
- 24 hours ago
- 2 min read
Redditch Borough Council is facing mounting opposition from the local taxi and private hire sector after proposing a 3% increase in licensing fees for the 2026/27 financial year, with industry representatives warning the move could accelerate the shift of drivers to rival authorities.
The proposals, set out in a Licensing Committee report dated 2 April 2026, would see the cost of a standard hackney carriage or private hire vehicle licence rise from £308.50 to £318.00, while temporary licences would increase to £238.00. Private hire operator licences for up to three vehicles would increase to £730.00, alongside a marginal rise for each additional vehicle.
Council officers stated the increases are designed to ensure the licensing service remains cost-neutral, as required under the Local Government (Miscellaneous Provisions) Act 1976. The authority is not permitted to generate profit from licensing and must set fees to recover operational costs including staffing, legal services and committee expenses.
However, objections submitted during the statutory consultation period highlight growing tensions between the authority and the trade. Representatives from the Redditch Taxi Association argued the proposed increases are “unjustified and unreasonable”, citing declining earnings, cross-border competition and dissatisfaction with licensing service standards.
Proposed 3% rise in hackney carriage and private hire fees prompts objections from drivers and operators citing financial pressure and competitive disadvantage
Operators have also raised concerns about competitive pressures from neighbouring authorities, particularly Wolverhampton, where lower fees and more streamlined processes are attracting drivers. One operator, A2B Taxis and Contracts (Redditch) Ltd, warned that higher costs could drive further migration of drivers out of the borough, reducing local enforcement oversight and weakening public safety controls.
Financial comparisons included in the objection show a significant cost disparity. A Redditch-licensed vehicle could cost around £427.90 annually when mandatory testing is included, compared to approximately £229.95 in Wolverhampton. For a fleet of 35 vehicles, this equates to an additional annual cost of nearly £7,000 for remaining licensed locally.
Industry stakeholders also point to broader economic pressures impacting the sector. Operators report declining job volumes, increased competition from app-based platforms, and rising vehicle and compliance costs. Some claim that licensing has become one of the largest controllable overheads, making fee increases particularly difficult to absorb.
Despite these concerns, council officers maintain that the proposed rise reflects inflationary pressures and the need to sustain service delivery. The report notes that any reduction in fees could result in the licensing function operating at a loss, placing additional strain on council finances.
The Licensing Committee is tasked with reviewing the objections before making a recommendation to full council, which holds the final authority to approve or amend the fee structure.
