Taxi industry voices urge fresh financial backing as London taxi numbers KEEP FALLING a year after Mayor’s Action Plan released
- Perry Richardson
- Mar 20
- 3 min read
Updated: Mar 22
Taxi industry figures are stepping up calls for new financial support for London’s black cab trade, saying the Mayor’s Taxi and PHV Action Plan has yet to deliver the intervention needed to slow the sector’s decline.
27 March 2026 marks one year since the publication of the Taxi and PHV Action Plan, which set out ambitions to support the capital’s taxi and private hire industries. The plan described taxis as a vital part of London’s transport network and included a commitment to halt the decline in black cab numbers. Since then, however, licensed taxi numbers have continued to fall.
According to the latest licensing figures cited, the number of licensed London black cabs has dropped from 14,540 in 2025 to 13,784 by March 2026. That represents a fall of about 5% over the year, adding to a much longer-term trend that has seen driver numbers reduce sharply over the past two decades.
Freenow by Lyft and the Licensed Taxi Drivers’ Association (LTDA) said the past year has been marked by a lack of meaningful action to help drivers cope with the rising cost of operating a cab. They argue that without targeted financial help, more drivers will leave the trade, further weakening a part of London’s transport system that remains important for accessibility, night-time travel and point-to-point journeys.
One year after City Hall published its Taxi and PHV Action Plan, trade representatives and app operator Freenow by Lyft say the lack of new financial support is accelerating the decline in black cab numbers and putting pressure on accessible and late-night transport across the capital.
The issue carries wider implications for passengers who depend most on licensed taxis. Industry figures pointed to Department for Transport data showing that 23% of taxi and private hire passengers have a disability that limits day-to-day activity, while disabled adults take 67% more taxi trips than non-disabled adults. With the fleet continuing to contract, trade leaders say the availability of fully accessible, door-to-door transport is coming under growing strain.
Safety is also being used as part of the case for intervention. Freenow by Lyft research cited by the industry found that 47% of Londoners see black cabs as the safest way to travel at night. Operators and driver groups say that as taxi numbers fall, passengers are left with fewer trusted options during late hours, particularly in areas where public transport links are weaker.
The private sector has begun offering limited support, but industry representatives say that is not enough to reverse the trend. Freenow by Lyft has introduced its own financial subsidy to support students taking the Knowledge of London, the capital’s long-standing taxi licensing test. Trade figures say such measures may help at the margins, but they do not replace a broader policy response from City Hall and Transport for London.
Industry leaders are now calling on the Deputy Mayor for Transport and the TfL Commissioner to update the London Assembly on what further backing is being considered for the taxi trade. Their central argument is that the Action Plan set out the right diagnosis but has not yet been matched by the scale of support needed to keep drivers in the industry and maintain service levels for Londoners.
Danny O’Gorman, General Manager, Freenow by Lyft UK, said: “One year after the Taxi and Private Hire Action Plan was announced, the number of taxi drivers is still declining.
“Financial support from TfL and central government has become almost non-existent, while new drivers face increasing costs related to the Knowledge of London and licensing. Existing drivers also face rising licensing fees, vehicle purchase prices, surging EV charging costs, and often uncertain incomes. We are calling on the Deputy Mayor and TfL Commissioner to update City Hall on the Mayor’s Transport Strategy. It is time to turn rhetoric into results by providing concrete financial support that ensures the taxi trade remains a viable and attractive profession.”
Steve McNamara, General Secretary of the Licensed Taxi Drivers’ Association from LTDA, said: “The Mayor’s Taxi and Private Hire Action Plan 2025 was launched to bolster our industry through four key pillars: driver recruitment, safety, passenger experience, and sustainability. However, time is running out.
“To remain a vital, fully accessible part of London’s transport mix, we need more than just a plan—we need action and more financial support to help cabbies with the growing costs of EVs. If policymakers continue to ignore the industry's needs, they are ignoring a crisis that threatens the very survival of the trade.”
