The black cab trade in London is at a critical juncture, with the number of licensed taxis plummeting by 37% over the past decade. This equates to a loss of around 1,000 drivers annually, a situation that industry leaders believe could spell the end for this iconic mode of transport if urgent action is not taken. In a bid to address these concerns, prominent figures within the industry have written to the Chancellor of the Exchequer and the Secretary of State for Transport, outlining two primary requests for government intervention.
Extending the Plug-in Taxi Grant
One of the central pleas put forth in the letter is the request to extend the Plug-in Taxi Grant (PiTG) beyond its current expiration date of April 2025. Introduced to assist drivers in transitioning to zero-emission vehicles (ZEC), this grant is deemed vital for meeting London’s ambitious net zero targets by 2030. However, the recent reduction in the grant amount from £7,500 to £6,000 has led to a noticeable decline in new ZEC taxi sales. Many drivers find it increasingly difficult to bear the cost of these eco-friendly vehicles, which further complicates the effort to modernize the fleet and reduce emissions.
Industry leaders argue that without extending and potentially increasing the PiTG, the black cab trade will struggle to make the necessary transition to zero-emission vehicles. The reduction in grant amount has already impacted drivers’ willingness and ability to invest in new ZEC taxis, posing a significant barrier to achieving environmental goals. The extension of this financial support is, therefore, seen as a crucial step in both preserving the black cab industry and contributing positively towards London’s sustainability objectives.
Expanding VAT Exemption
The second key request made is to expand the VAT exemption on adapted motor vehicles for disabled passengers to include black cabs. Accessible transportation options are increasingly vital, especially for individuals with mobility challenges who rely on black cabs for dependable door-to-door service. However, the high costs associated with acquiring and maintaining these specially adapted vehicles place additional financial strain on drivers.
By extending VAT exemptions to black cabs, industry leaders believe it will alleviate some of the economic burdens faced by drivers, thereby ensuring the continued availability of accessible transportation. Black cabs have long served as a crucial component of London’s transport network, especially in terms of providing inclusive services. Failure to address the financial challenges posed by maintaining an accessible fleet could result in reduced services for disabled passengers and further decline in the industry.
Broad Implications for Drivers and the Public
The black cab industry in London is facing a critical moment, with a significant decline in the number of licensed taxis over the past ten years. The number has dropped by an alarming 37%, translating to a decrease of roughly 1,000 drivers each year. Industry experts warn that if immediate measures are not implemented, this iconic form of transportation could vanish. In response to this growing concern, key industry leaders have taken action by writing to the Chancellor of the Exchequer and the Secretary of State for Transport. They highlighted two main requests for government support: financial aid to address the costs of maintaining and upgrading the fleet, and policy reforms that would make it easier to attract and retain new drivers. By addressing these issues, industry leaders hope to ensure the survival and continued relevance of the black cab trade in London. Without such intervention, the future of these traditional taxis remains uncertain, prompting urgent calls for governmental assistance to save this quintessentially British service.
