TfL signals review of new financial support options for London taxi trade in letter to London Assembly
- Perry Richardson
- 1 hour ago
- 2 min read
Transport for London (TfL) has indicated it is considering new financial support mechanisms for the taxi trade after the London Assembly Transport Committee criticised the capital’s Taxi and Private Hire Action Plan as falling short on driver support.
In its formal response to the Committee’s recommendations, TfL addressed Recommendation 7, which calls for additional financial assistance for licensed taxi drivers beyond the existing plug-in taxi grant and any future VAT exemptions. The Committee said further measures are needed to improve financial resilience and accelerate the transition to cleaner vehicles.
TfL said it has already provided more than £50 million in funding through various initiatives aimed at retiring older, more polluting taxis and encouraging uptake of zero emission capable vehicles. However, it acknowledged that the upfront cost and financing of electric taxis remains a significant barrier for many drivers, particularly given current vehicle prices and borrowing conditions.
In response to the recommendation, TfL confirmed it is carrying out internal work to examine potential new funding options for the taxi trade. This work follows representations from industry bodies, including the Licensed Taxi Drivers’ Association (LTDA), and includes reviewing approaches used in other cities and assessing how any scheme could align with the Mayor’s wider environmental and transport objectives.
Transport authority acknowledges funding gap beyond existing grants as Assembly presses for wider backing
The Committee specifically urged TfL to explore the use of the Mayor’s Green Finance Fund as part of any future support package. While TfL did not commit to a specific mechanism or timeline, it said eligibility criteria and delivery models would need to ensure consistency with mayoral policy goals, including decarbonisation and air quality improvements.
Alongside direct financial support, TfL highlighted ongoing investment in charging infrastructure as an indirect form of assistance for high-mileage taxi drivers. The authority said London now has more than 27,000 public charge points, including over 1,500 rapid chargers and 57 rapid charging hubs, with a continued focus on expanding rapid and ultra-rapid charging suitable for professional drivers.
TfL added that it is using Greater London Authority land to unlock new charging locations and is supporting boroughs through the Government’s Local EV Infrastructure fund to increase slower charging provision. These measures, TfL said, are intended to reduce operating costs and improve the practicality of electric taxis across the capital.
The Committee’s wider investigation into the Taxi and Private Hire Action Plan concluded that insufficient engagement with drivers and the trade had contributed to weaknesses in the strategy. Recommendation 7 forms part of a broader push for stronger financial backing to stabilise the licensed taxi sector as it faces rising costs, falling driver numbers and the continued transition away from diesel vehicles.
