North Yorkshire Council

 

Executive

 

14 July 2026

 

Review of Maximum Hackney Carriage Fares

 

Report of the Assistant Director – Regulation and Harbours

 

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 fares came into effect in 01 July 2024 following consultation and consideration by the Executive. The current table of fares is attached at Appendix 1 (with current proposed changes detailed in yellow, see para 2.6). It should be noted that drivers may agree to charge a lower amount than the maximum fares at their own discretion.

 

2.4       A further review was carried out in 2025 and, following a comprehensive consultation, Executive decided on 24 September 2025 to make no change to the maximum fares at that time.

 

2.5       Since the war in the Middle East, we have seen a steady increase in fuel prices and there is no current prospect of prices going down. Three requests were received from the hackney carriage trade to review the current table of fares, and these were considered by the Executive on 12 May 2026. The report and draft minutes can be viewed here. It was agreed:

                 i.          To approve the variation to the Council’s Hackney Carriage Table of Fares as set out in the report and represented on the current table of fares in Appendix 1 to this report (with changes highlighted in yellow).

                ii.          To approve the publication of the required statutory notices notifying of the variation approved in recommendation i. above.

 

 

 

 

 

2.6       The proposed variation seeks to increase the maximum Hackney Carriage fares for each tariff band by 5% and makes no change to the additional charges at the bottom of the tariff card. An increase of 5% has the following effect:

·                Tariff 1 increases from £2.22 to £2.33 per mile, £20.23 to £21.24 per hour waiting time.

·                Tariff 2 increases from £3.15 to £3.31 per mile, £28.90 to £30.35 per hour waiting time.

·                Tariff 3 increases from £4.20 to £4.41 per mile, £38.54 to £40.47 per hour waiting time.

 

2.7       On 14 May 2026, the statutory notice was published in the Yorkshire Post inviting objections from any interested parties by 05 June 2026. A copy of the notice is attached at Appendix 2. The notice was also displayed in Council offices around North Yorkshire. All licence holders were emailed the proposed variations and invited to lodge any objections by 05 June 2026.

 

2.8       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 3 and were considered by Executive on 12 May 2026.

 

2.9       A total of five responses have been received in relation to the public notice regarding proposed variation and these are attached at Appendix 4. One reiterates his original request asking for more than 5%. One misunderstood the proposals and, once explained, seemed happy. One comments on how long changes take. Two comment that fares should be left as they are. It is not possible to satisfy all requests; therefore, the Council must seek an appropriate outcome taking all of these into account.

 

2.10     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 05 August 2026) on which the new table of maximum fares shall come into effect.

 

2.11     Having considered the limited number and nature of objections received, officers remain satisfied that the proposed 5% increase represents a balanced and proportionate approach Members are therefore asked to consider the objections and to approve the proposed variation to the Council’s table of maximum fares.

 

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 options available are:

·                To make modifications to the table of fares as detailed in the statutory notice and outlined in Appendix 1, with a commencement date of 01 August 2026 (Recommended).

·                To make any other increase to the table of fares and agree an implementation date.

·                To make no modifications to the table of fares.

·                To make a decrease in the table of fares and agree an implementation date.

 

4.2       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. The Council could choose not to set maximum fares.

 

 

5.0       IMPACT ON OTHER SERVICES/ORGANISATIONS

 

5.1       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.

 

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 two 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.

 

8.4       An Equalities Impact Screening document is attached at Appendix 5.

 

9.0       CLIMATE CHANGE IMPLICATIONS

 

9.1       Regular reviews of the hackney carriage table of 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. An initial climate change impact assessment form is attached at Appendix 6.

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.

 

13.0

RECOMMENDATION

 

13.1

To approve the variation to the Council’s Hackney Carriage Table of Maximum Fares as set out in Appendix 1 with effect from 1 August 2026.

 

 

 

APPENDICES:

Appendix 1 – Current table of maximum fares with variations highlighted in yellow

Appendix 2 – Statutory Notice

Appendix 3 – Fare comparison charts

Appendix 4 – Responses and objections

Appendix 5 – Equalities Impact Screening

Appendix 6 - Climate Change Impact Assessment

 

BACKGROUND DOCUMENTS:

Local Government (Miscellaneous Provisions) Act 1976Taxi and Private Hire Vehicle Licensing Best Practice (Department for Transport)

 

Callum McKeon

Assistant Director for Regulation and Harbours

County Hall

Northallerton

DL7 8AD

 

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.