Agenda item

The Committee received a report on the proposal to restructure and increase Hackney Carriage fares (tariffs) for the Buckinghamshire Council area.  The proposal had been made in light of significant increases in costs and further to requests from the licensed hackney carriage trade. The Committee were asked, in advance of a Leader Key Decision, to note and comment on the proposals.  It was noted that it was a Leader Key Decision and not, as was stated in the report, a Cabinet Member Decision.

Where tariffs were set by the local authority, drivers of hackney carriage vehicles (taxis) could not charge more than the maximum specified fare, apart from in certain exceptional circumstances, although they could charge less.  Local authorities had no powers in relation to setting the fares charged for the use of private hire vehicles.  Buckinghamshire Council currently licenced approximately 340 hackney carriage vehicles and 2025 private hire vehicles.

The process and requirements for the fixing of fares for hackney carriage was set out in Section 65 of the Local Government (Miscellaneous Provisions) Act 1976 and included the requirement for advertising and a statutory 14-day consultation period. There was no prescribed methodology for calculating maximum fares and each local authority was responsible for adopting its own approach to devising local rates.  Common methods included a consideration of changes to inflation, associated vehicle running costs, comparisons with other licensing authorities and the views from the hackney carriage trade.

Buckinghamshire Council first introduced a single set of hackney carriage tariffs in September 2021.  It was intended that an annual review of fares would take place each April, starting 2023, taking into account any rise in CPI figures along with local and national benchmarking.  However, significant increases in fuel prices and other costs faced by the trade in 2021/22 led to this review being brought forward and a revised schedule of fares was introduced in August 2022.

The licensing service had received a further request from the hackney trade representatives to review the fares once again.  The service had met with trade representatives on a number of occasions to discuss this request and representatives had produced a number of reasons and supporting information to justify the request for a review.  The basis for the review was on two grounds, firstly in response to significant increases in costs impacting the trade and secondly because it had been identified that there were anomalies with the fare structure introduced last August 2022 that the trade would like to see rectified. 

The licensing service had also conducted its own research, reviewing changes to CPI and other influencing factors such as fuel prices and motor insurance premiums.  An analysis of fares charged nationally and locally in neighbouring local authority areas had been conducted.  Of particular interest was the finding that average hackney carriage fares had increased nationally by 16% since fares were last reviewed by Buckinghamshire Council in August 2022.

Arising from the trade meetings, the hackney trade representatives had put forward a new fare structure that they would like Buckinghamshire Council to adopt.  The new structure was simpler to understand and implement and would provide greater clarity for the trade and customers, with a clear distinction between higher tariffs.  The proposal included an increase in the minimum fare to ensure drivers were appropriately recompensed for waiting times between fares and short journeys.    The proposal also included a request to increase fares across the board, to compensate for increased running maintenance costs and greater “dead” mileage as a result of working in a larger authority area.  A significant increase was proposed to tariffs 2 and 3 to reflect the unsociable hours and encourage drivers to make themselves available at these times.   The new structure, if approved, would more readily lend itself to CPI increases as percentage increases could be simply applied to all tariffs proportionately. It was also proposed that the current maximum soiling charge be increased from £50 to £100.  The current maximum charge of £50 was not considered adequate to cover the cost of valeting the vehicle and time that the driver might be off the road while the vehicle was being cleaned.  The proposed £100 charge was a maximum and could be scaled accordingly.  

The proposed new tariff of maximum fares was shown as Appendix 2.  With regards to next steps, officers advised that following this committee meeting, a key decision report would be prepared and presented to the Leader of the Council incorporating any comments made by the Licensing Committee for consideration.  If the Leader of the Council was minded to approve the proposed fares, as set out in appendix 2, they would then go out to public consultation for a period of two weeks. Should there be any objections raised during the consultation, the matter would then be referred back to the Leader of the Council for a final decision to be made within two months of the consultation exercise.

Members were invited to ask questions of officers.  In response to a question, officers clarified that whilst drivers of hackney carriage vehicles could not charge more than the maximum specified fare, apart from in certain exceptional circumstances as set out in the report, they could charge less. Following a question regarding the use of credit cards, officers advised that hackney carriage drivers could take card payments, but they were not able to charge an additional amount for card payments and that drivers had to cover the costs associated with taking card payments.

With regards to “dead” mileage as referred to in paragraph 3.9 of the report, a Member of the Committee asked whether legislation would allow for the reintroduction of zones based on the old district authorities’ areas. In response, officers advised that the Council could not reintroduce zones. The Council could in theory have a fare structure that took different areas into account, but that would be hard to work in practice and would be very complicated. One of the benefits of the proposed fare structure was that it would be simpler to understand and implement and would provide greater clarity for the hackney carriage trade and customers.

In the discussion which followed, a Member of the Committee asked whether consideration could be given to also include Eid in Tariffs 2 and 3 to encourage drivers to make themselves available during this time. In response, officers advised that this had not been raised by the hackney carriage trade, but it was something that could be put forward in the Leader’s report for consideration.  In the meantime, officers would speak to the hackney carriage trade to find out their views on it.

A Member of the Committee recognised the increase of costs to the hackney carriage trade as set out in the report and how this could impact on the service they were providing. Another Member of the Committee stated that they were comfortable with the proposed increase given the significant increases of costs to the hackney carriage trade and the need for the hackney carriage trade to make a decent living.  The Member added that the proposed tariff structure would also give the hackney carriage trade the option to be competitive if they wanted. Furthermore, customers would still be able to make a choice.

RESOLVED that, in advance of a Leader Key Decision, the proposal to restructure and increase Hackney Carriage fares (tariffs) for the Buckinghamshire Council area, in light of significant increases in costs and further to requests from the licensed hackney carriage trade, be noted and that the comments of the Committee, as set out in the minutes above, be fed back to the Leader of the Council.