North Yorkshire Council
Executive
18 June 2024
Review of Maximum Hackney Carriage
Fares
Report of the Corporate Director of
Environment
1.0 PURPOSE
OF REPORT
1.1 The
purpose of this report is to consider varying the Council’s
Hackney Carriage Table of Maximum Fares.
2.0
BACKGROUND
2.1 In
accordance with Section 65 of the Local Government (Miscellaneous
Provisions) Act 1976, the Council may fix the maximum rates of
fares to be paid in respect of the hire of hackney carriages within
North Yorkshire by means of a table (hereafter referred to as a
“table of maximum fares”). The table of maximum fares
may comprise charges for time, distance and all other charges in
connection with the hire of a hackney carriage vehicle.
2.2 A
hackney carriage vehicle can be hailed by passengers on the
roadside, it can stand on a rank to await the approach of
passengers and it can be pre-booked by telephone. In contrast,
private hire vehicles are licensed to perform pre-booked work only
through a licensed private hire operator. The Council’s table
of maximum fares applies only to hackney carriage vehicles. The
Council has no power to set maximum fares in respect of private
hire vehicles.
2.3 The
current table of maximum fares came into effect in April 2023 and
is attached at Appendix A. It should be noted that drivers may
agree to charge a lower amount than the maximum fares at their own
discretion.
2.4 Ahead of
a preliminary consultation on fares undertaken in March 2024, the
current table of maximum fares was compared against the maximum
daytime, night-time and public holiday rates set by neighbouring
authorities. The comparison charts are attached at Appendix
B.
2.5 On 07
May 2024, the Executive considered the outcome of the preliminary
consultation and subsequently approved the publication of statutory
notices proposing a variation to the table of maximum fares as
outlined in Appendix C. In
summary, the proposal makes provision for:
·
A 5% increase on the running mile
and waiting times in Tariff 1 (daytime rates)
·
Applying tariff 2 rates from 10pm to
7am (currently 11pm to 6am)
·
An increase from £1 per mile to
£1.50 per mile on the maximum call-out charge
·
An increase from £1.50 per head
to £2 per head for the carriage of 5 or more passengers
subject to an additional requirement that the surcharge may only be
applied where it has been agreed with passengers at the time of
hiring.
·
The introduction of a new maximum
surcharge of £50 (plus £50 per passenger assistant) to be
applied to any hiring under the terms of a contract with North
Yorkshire Council.
2.6 On 13
May 2024, the statutory notice was published in the Yorkshire Post
inviting objections from any interested parties by 28 May 2024. A
copy of the notice is attached at Appendix D. The notice was also
displayed in Council offices around North Yorkshire. All licence
holders were informed of the proposed variations and invited to
lodge any objections by 28 May 2024.
2.7 A total
of 30 responses have been received in relation to the proposed
variation and these are attached at Appendix E. The objections have
revealed a mixed response with some respondents suggesting that the
fares are already too high, some requesting that the fares remain
as they are at present and some suggesting that the proposed
increase is inadequate.
2.8 For
clarity, the proposed variations pertaining to any contract with
North Yorkshire Council would not influence the value of the
contract itself as that would remain a contractual matter between
the driver and the Council’s Integrated Passenger Transport
(IPT) Service. The purpose of the proposed surcharge is to raise
the maximum allowable charge in relation to school and social care
contracts and to ensure that the driver and the Council have
greater freedom to negotiate the value of a contract without
potentially falling foul of the laws on overcharging. At present, a
driver would technically commit an offence by charging in excess of
the metered rates (even if the fare has been agreed with the
Council) and therefore the surcharge is considered necessary to
protect drivers and to ensure that the Council can continue to
deliver its obligations to secure school and social care transport
without undue restrictions.
2.9 In
accordance with Section 65 of the Local Government (Miscellaneous
Provisions) Act 1976, the Council must consider the objections and
set a date (not later than 28 July 2024) on which the new table of
maximum fares shall come into effect.
2.10 Members are
therefore asked to consider the objections and to approve the
variation to the Council’s table of maximum fares, with or
without modification.
3.0
CONTRIBUTION TO COUNCIL PRIORITIES
3.1 The
Council is committed to protecting communities, safeguarding
children and ensuring the safety and wellbeing of the
public.
3.2 A regular review of the table of maximum fares
supports economic growth and incentivises work in the hackney
carriage industry, which delivers significant public protection
benefits.
4.0
ALTERNATIVE OPTIONS CONSIDERED
4.1 The
Council is not legally obligated to set the maximum rates of
charges. However, the vast majority of licensing authorities do set
maximum fares to provide certainty, consistency and, particularly
in relation to occasional passengers, protection from unfair or
unreasonable charges.
4.2 The
Council may consider modifying the proposed table of maximum fares.
Any reduction on the proposed fares may impact on the ability of
the hackney carriage trade to deliver a vital service whereas any
further increase may impact on affordability.
5.0 IMPACT
ON OTHER SERVICES/ORGANISATIONS
5.1 The
Council’s IPT Service is responsible for arranging and
managing school and social care transport across North Yorkshire.
It is in the public interest to ensure that the table of maximum
fares does not adversely affect the Council’s ability to
secure transport via hackney carriage services.
6.0
FINANCIAL IMPLICATIONS
6.1 Costs
relating to the statutory public notice, consultation and any
subsequent meetings are recovered from licence fees charged by the
Council and paid by the hackney carriage trade.
6.2 Any
increase in fares would have a financial impact on taxi-users
throughout North Yorkshire, although drivers may agree to charge a
lower amount than the maximum fares at their own
discretion.
6.3 Any
hackney carriage proprietors wishing to charge fares at the
increased rates would incur a small, one-off cost for the meter
calibration.
7.0 LEGAL
IMPLICATIONS
7.1 The
legislative framework for setting maximum hackney carriage fares
has been explored at paragraph 2.0 of this report.
7.2 Section
9D of the Local Government Act 2000 provides that any function of a
local authority which is not specified in the Local Authorities
(Functions and Responsibilities) (England) Regulations 2000 is to
be the responsibility of an executive of the authority under
executive arrangements. The power to fix maximum hackney carriage
fares under Section 65 of the Local Government (Miscellaneous
Provisions) Act 1976 is not specified in the regulations and is
therefore the responsibility of North Yorkshire Council’s
Executive in this instance.
8.0
EQUALITIES IMPLICATIONS
8.1
Disability is a protected characteristic within the meaning of the
Equality Act 2010. Having due regard to the need to advance
equality of opportunity between persons who share a relevant
protected characteristic and persons who do not, the Council must
endeavour to remove or minimise disadvantages suffered by persons
who share a relevant protected characteristic and take steps to
meet their needs.
8.2 A
balance must be sought to allow hackney carriage drivers to make a
reasonable living from their trade whilst also removing or
minimising disadvantages suffered by persons who have relevant
protected characteristics.
8.3 The
table of maximum fares applies equally to all licensed hackney
carriage vehicles. Drivers of hackney carriage vehicles are not
permitted to make any additional charges for carrying mobility aids
or for providing reasonable assistance to disabled
passengers.
9.0 CLIMATE
CHANGE IMPLICATIONS
9.1 Regular
reviews of the hackney carriage table of maximum fares ensure that
drivers and proprietors are able to plan for future investment in
new vehicles, which should mitigate the environmental impact of
licensed vehicles in North Yorkshire.
10.0 POLICY
IMPLICATIONS
10.1 In its Best
Practice Guidance published in November 2023, the Department for
Transport recommends that “in reviewing fare rates,
authorities should pay particular regard to the needs of the
travelling public, with reference both to what it is reasonable to
expect people to pay but also to the need to give taxi drivers the
ability to earn a sufficient income and so incentivise them to
provide a service when it is needed. There is likely to be a case
for higher fare tariffs at times of higher demand to encourage more
drivers to make themselves available or when the journeys are
required at anti-social times”.
11.0 COMMUNITY SAFETY
IMPLICATIONS
11.1 Hackney carriage
drivers play a particularly important role in the night-time
economy by transporting members of the public home safely late at
night. On that basis, it is in the interests of the public to
ensure that drivers are fairly rewarded for working during
anti-social hours and encouraged to continue providing a vital
public service.
12.0
REASONS FOR
RECOMMENDATIONS
12.1 The Council is
expected to set and regularly review the maximum fares to be
charged by hackney carriage drivers with a view to protecting the
public and ensuring that licensees are fairly rewarded for their
work.
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13.0
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RECOMMENDATION
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13.1
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To approve the
variation to the Council’s Hackney Carriage Table of Maximum
Fares (with or without modifications) as set out in Appendix C with
effect from 01 July 2024.
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APPENDICES:
Appendix A –
Current table of maximum fares
Appendix B –
Fare comparison charts
Appendix C –
Proposed table of maximum fares
Appendix D –
Statutory notice
Appendix E –
Objections and responses
BACKGROUND DOCUMENTS:
Local
Government (Miscellaneous Provisions) Act 1976
Taxi and
Private Hire Vehicle Licensing Best Practice (Department for
Transport)
Karl
Battersby
Corporate Director of Environment
County
Hall
Northallerton
29 May
2024
Report
Author:
Simon Fisher, Licensing Service Development Lead; and
Gareth Bentley, Head of
Licensing
Presenter of
Report: Simon Fisher, Licensing Service Development
Lead; and
Gareth Bentley, Head of
Licensing
Note: Members
are invited to contact the author in advance of the meeting with
any detailed queries or questions.
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Tariff 1 (Between
7am and 10pm)
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Flag fall for the first 440 yards or
part thereof
Drop at 440 yards and every
158.56 yards or part
thereof:
Waiting time for each period of
35.59 seconds or part
thereof:
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£4.00
£0.20
£0.20
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|
|
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Tariff 2 (Between
10pm and 7am & Public holidays*)
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Flag fall for the first 440 yards or
part thereof
Drop at 440 yards and every 167.62
yards or part thereof:
Waiting time for each period of
37.36 seconds or part thereof:
*All public holidays other than
those listed in tariff 3, tariff 2 applies throughout the 24-hour
period.
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£6.00
£0.30
£0.30
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Tariff
3 (Christmas and New Year**)
|
|
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Flag fall for the first 440 yards or
part thereof:
Drop at 440 yards and every 167.62
or part thereof:
Waiting time for each period of
37.36 seconds or part thereof:
**From 6pm 24th December to 7am 27th December and 6pm 31st December to 7am 2nd January.
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£8.00
£0.40
£0.40
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Fouling charge
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Maximum
charge
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£100.00
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Extra charges
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Extra charge per head which can be
charged for ALL PASSENGERS when carrying 5 or more (only chargeable if agreed at the time of
booking)
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£2 per
person
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Call out or summoning
charge
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Maximum to be
added to any journey where the vehicle has been called out or
summoned from another location (only chargeable if agreed at the
time of booking).
.
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£1.50 per
mile
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North Yorkshire
Council contract surcharge
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Maximum surcharge
for each hiring under the terms of a contract with North Yorkshire
Council.
Maximum surcharge
for the provision of each passenger assistant where applicable
under the terms of a contract with North Yorkshire
Council.
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£50
£50
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Proposed variations explained
It should be
noted that drivers may agree to charge a lower amount than the
maximum fares at their own discretion.
Tariff 1
The proposed
increase to 158.56 yards (from 167.72 yards) on the running mile
and to 35.59 seconds (from 37.36) on waiting times represents a 5%
increase in accordance with several requests from the trade. The
comparison with neighbouring authority daytime rates, along with
the general view from the consultation responses, indicates that
there is little need or demand for an increase on the initial
£4 charge for the first 440 yards.
Tariff 2
The proposed
table of fares makes no provision for an increase on the tariff 2
rates as the comparison charts indicate that night-time fares in
North Yorkshire are already among the highest in the region and
there was only limited appetite for an increase in this regard
during the preliminary consultation. However, the proposal does
make provision for a variation to the hours during which tariff 2
rates are in effect. Night-time rates take effect at different
hours across the region but applying tariff 2 rates from 10pm to
7am (currently 11pm to 6am) is considered reasonable to ensure that
drivers are fairly rewarded for working during anti-social hours
and to increase the availability of hackney carriage vehicles at
times when other public transport services are limited.
Tariff 3
The proposed
table of fares makes no provision for an increase on the tariff 3
rates as the comparison charts indicate that Christmas and New Year
fares in North Yorkshire are already among the highest in the
region.
Extra charges
The current
maximum surcharge of £1.50 per person for the carriage of five
or more passengers is not considered sufficient to cover the
additional costs associated with operating larger vehicles.
However, the preliminary consultation indicated that this charge
may be applied both to the detriment and to the surprise of
passengers. In order to ensure that passengers are given advance
notice of the potential cost, it seems reasonable for the Council
to require that such a surcharge may only be applied where it is
agreed between the driver and the hirer prior to the commencement
of the journey. This ensures that passengers will have an
opportunity to either negotiate with the driver or book two smaller
vehicles separately in instances where it would be in their
interests. An increase from a maximum of £1.50 per person to
£2 per person seems reasonable provided such an agreement can
be reached.
Call out or summoning charges
The current
maximum call-out charge of £1 per mile is not considered
sufficient to attract hackney carriage drivers to travel to some of
the more rural areas of North Yorkshire on demand and therefore an
increase to £1.50 per mile may be necessary to further
encourage the provision of services. As this charge may only be
applied where it is agreed between the driver and the hirer prior
to the commencement of the journey, an increase would only impact
on passengers who make such an agreement.
North Yorkshire Council contract
surcharge
At present, a
licensed driver would technically commit an offence by charging in
excess of the metered rates (even if the fare has been agreed with
the Council) but it is acknowledged that significantly higher costs are often incurred in
the delivery of school and social care contracts. A new surcharge
of up to £50 (plus a further £50 per passenger assistant
where applicable) per journey under the terms of a contract with
North Yorkshire Council is therefore considered necessary to
protect drivers and to ensure that the Council can continue to
deliver its obligations to secure school and social care transport
without undue restrictions. A surcharge of this nature would not in
any way place obligations on the Council’s Integrated
Passenger Transport Service to make the maximum payment but it
would allow for all parties to engage in contractual arrangements
with the necessary freedom in terms of costing. The Council’s
tendering process would continue to ensure that value for money is
achieved in this regard.
