A group of 15 charities and firms, including Disability Rights UK, have written to the Chancellor over their concerns, warning it will make essential travel unaffordable
Rachel Reeves is being warned against introducing a “taxi tax” at next month’s (NOV) Budget.
A group of 15 charities and firms, including Disability Rights UK, have written to the Chancellor over their concerns. They say introducing VAT on taxi fares is a “damaging new tax ” which will “make essential travel unaffordable for many, hitting vulnerable people in society hardest”.
In a letter, they say: “For vulnerable groups – survivors of abuse, the disabled, elderly, long-term sick, and those trying to get home safely at night – minicab services are a lifeline, not a luxury. They provide independence, safety, and access to vital services, especially where public transport is limited or unavailable.
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“The British public recognises this. That is why 71% say it would be wrong for the government to go ahead with the Taxi Tax at the Budget in November. Disabled people rely on minicabs and private hire vehicles (PHVs) to travel independently to work, attend education or training, access healthcare, and take part in social and community life. A steep rise in fares would risk cutting people off from the opportunities, services, and support networks they need to live their everyday lives, stripping away independence and limiting participation in society.”
The letter goes on to claim older people, especially those with mobility challenges or living in rural communities rely on PHVs. It also says it impacts people travelling at night, especially women and essential shift workers like carers, nurses and cleaners, who often rely on taxis as the safest way to get home.
The letter adds: “This policy would come at a time when the National Police Chiefs’ Council has declared violence against women and girls a national emergency, and when tackling social isolation, community safety and equality of access should be priorities. Increasing the cost of essential, safe transport moves us in the wrong direction.
“The Taxi Tax would be a new consumer tax that would dramatically increase prices for essential journeys and threaten livelihoods in the PHV sector and beyond. Two-thirds of the public agree that it would represent a new tax on working people, which your manifesto promised to avoid.”
The letter is also signed by the Survivors Trust, Disability Rights UK, the Night Time Industries Association, the Down’s Syndrome Association, British Independent Retailers Association, Institute of Hospitality Community Transport Association Re-Engage UK and Ask For Angela.
Responding to the letter, a HM Treasury spokesperson said: “We don’t recognise these figures. We take this issue very seriously and recognise its complexity. We are reviewing feedback from our recent consultation and will publish our detailed response shortly.”
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