ZERO RATE FINANCE: London taxi drivers surveyed as LTDA push for better funding for electric black cab fleet continues
- Perry Richardson
- 51 minutes ago
- 3 min read
Members of the Licensed Taxi Drivers’ Association (LTDA) are being asked to take part in a survey as part of an effort to unlock financial backing for the shift to cleaner vehicles.
Steve McNamara, LTDA General Secretary, used his TAXI Newspaper column to outline the challenge facing the trade. He warned that the cost of financing a new or used cab has risen sharply, with interest rates sitting around 10 to 11 per cent. According to McNamara, that level of borrowing makes or breaks a driver’s ability to buy or upgrade a vehicle.
He pointed to Scotland’s ‘Switched on Taxi Loan’ as an example of a workable solution. The scheme allows cabbies to buy a new LEVC TXE with zero per cent finance over six years.
London’s taxi fleet has already reached more than 65 per cent zero emission capable taxis. McNamara said this places the capital ahead of every major city in the world in terms of taxi fleet emissions. With the 12-year age limit continuing to remove older diesel cabs from service, the LTDA is trying to secure funds to help drivers make the switch.
He has been lobbying central government and City Hall for support, though he acknowledged that both are working with tight budgets. To move discussions forward, the LTDA has been asked to gather data that sets out the scale of demand and the likely cost of any support package.
The survey will cover the type of cab drivers currently use, whether they own or rent, their plans for future upgrades, and what level of financial help would encourage a switch to a cleaner cab. The responses will be used to demonstrate the need for funding and the likely impact any assistance could have on the remaining diesel fleet.
McNamara said there is no guarantee that funding will follow, but providing evidence of demand is a necessary step in the process.
Steve McNamara said: “One of the biggest changes in recent years is the cost of financing a new or second-hand cab, with interest rates hovering around the 10 or 11% mark. It really can make all the difference between a driver being able to afford to buy or upgrade an older cab or not.
“In Scotland, the government has introduced something called the ‘Switched on Taxi Loan’ that enables cabbies to buy a new TXE at 0% finance over a six-year period. And it’s been so successful that LEVC have sold more new cabs in Scotland than in London!
“Over the past few months, I have been approaching and lobbying both Central Government and City Hall, highlighting what a fantastic job we have done in getting the London fleet to over 65% of ZEC taxis
“We are now the cleanest cab fleet in the world and currently seeking sources of funding to help us upgrade the remaining diesel fleet, as cabs are taken off the road with the 12-year age limit.
“It’s no secret that neither the government nor City Hall are particularly flush with cash at the moment, so it’s been far from an easy task, but in order to gauge the level of demand, and thus money needed, I have been asked to conduct a survey. It’s to find out members’ views on what cabs they drive, whether they own or rent, what their intentions are going forward, and what level of funding would tempt them to upgrade to a cleaner cab.
“By no means does this mean that we will be successful in securing funds, but any data we can provide going forward has to be a step in the right direction.“
