North Yorkshire Council
Executive
16 September 2025
Review of Maximum Hackney Carriage Fares
Report of the Corporate Director – Environment
1.0 PURPOSE OF REPORT
1.1 The purpose of this report is for the Executive to consider three requests to vary the Council’s Hackney Carriage Table of Maximum Fares.
2.0 BACKGROUND
2.4 Any proposed variation to the table of fares must be advertised at the Council offices and by way of a notice in a local newspaper stating a period (not less than 14 days from the date of publication) within which interested parties may lodge objections. Where there are no outstanding objections, the proposed table of fares shall come into effect upon the expiration of the period specified in the notice. If objections are received, the Council shall set a further date (not later than two months from the first specified date), at which time the table of fares shall come into force with or without modifications as determined by the Council after consideration of the objections.
2.5 If Members propose a variation to the table of fares approval will be required for the publication of statutory notices, subject to further consideration in the event of any objections being lodged.
3.0 REQUESTS AND CONSULTATION RESPONSES
3.1.1 (1) From Take Me Group Ltd, on behalf of 48 named drivers – “Following the announcements from government for increases in the minimum wages and a lowering of the threshold for national insurance. We request a rise in the measured mile for tariff 1 of between five to ten percent and as tariffs two and three did not rise last year we request a rise of 10 percent for those tariffs measured miles”.
3.1.2 (2) From Richard Fieldman, Hackney Carriage driver – “Flag fall up from £4.00 to £4.20, as this was not increased last year, 5% on the running mile and waiting time, tariffs two and three, bringing up to the time and a half and double time of tariff one, which we lost last year”.
3.1.3 (3) From Kevin O’Boyle, Operator of Central Radio Cars – “From 06 April 2025 I am having to pay a higher minimum wage and higher national insurance contributions. Without a fare increase I have no way of offsetting these costs. I would have thought that the amount of time since the government announced these increases, that you would have planned things to coincide. Can you please advise when we may be looking at a fare increase to offset these extra expenses”.
3.2 Consultation:
The existing table of fares was compared against the maximum daytime, night-time and Christmas holiday rates set by neighbouring authorities. The comparison charts are attached (Appendix B).
3.3 A consultation commenced 16 June and ended on 28 July 2025. Consultations were sent directly to drivers, proprietors and operators, and by social media to other interested parties, directing consultees to the Councils consultation web page. A series of questions were asked along with free text boxes for additional comments. The comparison charts were included for reference.
3.4 Analysis of consultation
The full responses are attached (Appendix C). A total of 290 responses were received, and are summarised as follows:
· 203 Residents
· 72 Hackney / Private Hire drivers, operators or representatives of the trade (trade)
· 11 Visitors
· Businesses
3.5 Responses to the questions can be summarised as follows:
3.5.1 The current maximum fare for a three-mile journey during the day is £9.99
70% of the trade felt that fares were currently much too high, somewhat high or about right.
97% of residents, visitors or businesses felt that fares were currently much too high, somewhat high or about right.
3.5.2 The current maximum fare for a three-mile journey during the night is £14.98.
75% of the trade felt that fares were currently much too high, somewhat high or about right.
96% of residents, visitors or businesses felt that fares were currently much too high, somewhat high or about right.
3.5.3 The current maximum fare for a three-mile journey during Christmas and New Year is £19.98
75% of the trade felt that fares were currently much too high, somewhat high or about right.
92% of residents, visitors or businesses felt that fares were currently much too high, somewhat high or about right.
3.5.4 If the respondent supported an increase or decrease in maximum fares, they were asked by how much. The results are also contained in appendix C.
3.6.1 Change in average fuel costs since the last fare increase (source RAC). Majority of licensed vehicles are diesel or petrol fuelled with a proportion being hybrid
· Unleaded 1 July 2024 144.80p
· Unleaded 14 July 2025 134.64p
· Diesel 1 July 2024 149.92p
· Diesel 14 July 2025 134.64p
3.6.2 On average, fuel prices have decreased by 8.5% since the last review of maximum fares.
3.6.3 Cost of living (source Office for National Statistics). The latest annual cost of living rate shows an increase 4.1% over the last 12 months.
3.6.4 The cost of running a vehicle (source Office for National Statistics). The cost of running a petrol or diesel vehicle has changed from £3,461 to £3,357 over the last year, a decrease of 3%. This figure includes the change in fuel price.
3.7 The options available is that the Executive can decide to:
· Make no change to the maximum fares
· To increase the maximum fares for each tariff band by a specified amount
· To decrease the maximum fares for each tariff band by a specified amount
· To make any other change to the maximum fares
4.0 CONTRIBUTION TO COUNCIL PRIORITIES
4.1 The Council is committed to protecting communities, safeguarding children and ensuring the safety and wellbeing of the public.
5.0 ALTERNATIVE OPTIONS CONSIDERED
5.1 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.
6.0 IMPACT ON OTHER SERVICES/ORGANISATIONS
6.1 The Council’s Integrated Passenger Transport Service (IPT) is responsible for arranging and managing school and social care transport for children and vulnerable adults across North Yorkshire. It is in the public interest to ensure that the table of fares does not adversely affect the Council’s ability to secure transport via hackney carriage services. The table of fares was adjusted last year to reflect this. The adjustments have worked successfully over the last year so no changes to this element are proposed.
7.0 FINANCIAL IMPLICATIONS
7.1 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.
7.2 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.
7.3 Any hackney carriage proprietors wishing to charge fares at the increased rates would incur a small, one-off cost for the meter calibration.
8.0 LEGAL IMPLICATIONS
8.1 The legislative framework for setting maximum hackney carriage fares has been explored at paragraph 2 of this report.
8.2 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.
9.0 EQUALITIES IMPLICATIONS
9.1 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.
9.2 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.
9.3 The maximum table of 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.
9.4 An Equalities Impact Screening document is attached (Appendix D).
10.0 CLIMATE CHANGE IMPLICATIONS
10.1 Regular reviews of the hackney carriage table of fares ensure that drivers and proprietors can plan for future investment in new vehicles, which should mitigate the environmental impact of licensed vehicles in North Yorkshire. Climate change impacts are current being considered in the review of the Hackney Carriage and Private Hire Licensing Policy. An initial climate change impact assessment form is attached (Appendix E).
11.0 POLICY IMPLICATIONS
11.1 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”.
12.0 COMMUNITY SAFETY IMPLICATIONS
12.1 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.
13.0 REASONS FOR RECOMMENDATIONS
13.1 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.
13.2 The research carried out confirms that:
· Over 70% of the trade and over 92% of residents, visitors or businesses who responded to the consultation felt that current fares were just right or too high for all three tariffs.
· On average, fuel prices have decreased by 8.5% since the last review.
· The latest annual cost of living rate shows an increase 4.1% over the last 12 months.
· The cost of running a petrol or diesel vehicle has decreased by 3% in the last 12 months (includes the change in fuel price).
|
14.0 |
RECOMMENDATION(S)
|
|
14.1
14.2
|
That no change be made to the current Hackney Carriage Table of Maximum Fares.
That, if the Executive approves to increase or decrease the maximum Hackney Carriage fares, the required statutory notices are published followed by further consideration of any responses. |
|
|
|
APPENDICES:
Appendix A – Current table of fares
Appendix B – Fare comparison charts
Appendix C – Responses to consultation
Appendix D - Equalities Impact Screening document
Appendix E - Initial climate change impact assessment form
BACKGROUND DOCUMENTS:
Local Government (Miscellaneous Provisions) Act 1976
Taxi and Private Hire Vehicle Licensing Best Practice (Department for Transport)
Callum McKeon
Assistant Director for Regulation and Harbours
County Hall
Northallerton
Report Author: Gareth Bentley, Head of Licensing
Presenter of Report: Gareth Bentley, Head of Licensing