Cabbies put in bid to increase South Tyneside taxi fares by 18%
Under the changes, a two-mile journey on tariff one, which covers 7am until 10pm, would increase from £6.60 to £7.84.
A formal bid to increase South Tyneside’s hackney carriage fares for the first time in four years is due to be discussed by borough councillors.
Under a hackney carriage licence, drivers can typically be flagged down on the street or accessed at taxi ranks, as well as taking on pre-booked work.
They can only operate using the council’s set fares which are fixed as maximum fares, with individual drivers free to charge less.
As South Tyneside’s operators use a mixed fleet of both hackney carriages (taxis) and private hire vehicles, changes to maximum charges can influence the wider trade.
At a meeting of the council’s Licensing and Regulatory Committee on Friday, October 30, councillors will consider a formal request on behalf of the hackney carriage trade.
The request aims to increase maximum fares and bring the council into line with some borough private hire operators and some neighbouring councils.
A licensing officer report prepared for decision-makers notes that South Tyneside’s hackney carriage fares are one of the lowest fares across the region.
It was noted that new proposals are “not significantly out of step” with what is charged elsewhere in the North East.
Why are the changes being proposed?
The council last agreed to increase fares in August, 2022, and prior to that the last increase was 2019.
A letter to the council requesting a review of fares states it was submitted following discussions with more than 30 licensed South Tyneside hackney carriage drivers who supported the proposal.
It was noted that the council’s current table of fares has not changed for more than four years and that the general cost of living and costs associated with operating a hackney carriage have “increased considerably”.
The letter said that other factors impacting drivers include increased fuel and vehicle operating costs, as well as increased insurance, servicing and vehicle replacement costs.
It was argued that the proposed 18 per cent “nominal tariff adjustment”, when measured against cumulative inflation since August 2022, represents a “real-terms increase of only around 1.2 per cent overall”.
The letter said the proposed fare increase is about “restoring purchasing power lost since 2022 rather than providing drivers with a substantial real-terms increase”.
It added the proposals aim to achieve a “reasonable balance between keeping fares affordable for passengers and ensuring that hackney carriage work remains commercially viable.”
What is being proposed?
The letter states an overall increase of around 18 per cent is proposed to the “initial hiring charge and distance elements of tariffs one and two”.
Under the changes for example, a two-mile journey on tariff one, which covers 7am until 10pm, would increase from £6.60 to £7.84.
Meanwhile, a three-mile journey on tariff two (covering 10pm until 7am), would be up from £9.60 to £11.40.
The proposals also ask for an increase in the bus tariff, which can only be charged for a vehicle that can carry more than five passengers.
An example of a standard bus tariff for a two-mile journey would increase from £10.60 to £12.52.
For a three-mile journey on the weekend bus tariff, there would be an increase from £15 to £17.80.
What happens next?
The proposals will be examined in detail at a meeting of South Tyneside Council’s Licensing and Regulatory Committee on Friday, October 30.
The meetings usually include representations from the association requesting the review, as well as questions from councillors.
If the proposed variation in fares is approved, there will be a 14-day representation period and a notice placed in the local press.
Any objections to the proposed increase can be considered by the Licensing and Regulatory Committee.