The decision, made during a Cabinet meeting on Tuesday, January 8, marks the second fare hike within three years, following the previous increase in 2022.
Under the revised fares, the standard flag fare will rise by five per cent, moving from £4 to £4.20.
The highest rate of change includes a 16 per cent increase for a five-mile journey, with fares jumping from £12.20 to £14.20.
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The hackney carriage trade initially proposed adding an additional £1 to the flag fare, mirroring the 2022 hike. However, the Cabinet opted for a smaller percentage-based increase.
At the meeting, Cabinet member for residents’ services and housing, Laura James, explained the rationale behind the decision.
“This fare increase is necessary to help the trade cope with rising living costs, to support the adoption of electrified hackney carriages, and to encourage new entrants into the trade,” she said.
She also said it is important to support the taxi drivers to make the trade sustainable.
“I know there are concerns from residents about taxis. Obviously the taxis fell away post-pandemic and we had 391 taxis and of those we also had 108 hackney carriages.
“It’s really positive to say that as of this time now, we are in a much better position in relation to our taxis. We have now got 328 private taxis and we also have 76 hackney drivers. There’s also a real interest in electric taxis.”
She also noted that the existing fare structure is confusing for the public, as it relies on complex fractions to calculate rates.
The council’s licensing committee will look at simplification of the fare table on November 4, 2025, to improve transparency and understanding.
While the fare adjustments aim to balance trade support and public clarity, they have sparked criticism from some quarters.
Labour councillor Andy McCormick, speaking as an external contributor at the meeting, expressed his disapproval of the increases.
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“It seems that this council administration has one rule for businesses and another for residents, who just have to ‘suck it up’ with fare increases,” Cllr McCormick said.
“There’s one rule for the government, and another for this council, it seems as well.”
The new rates will take effect on Wednesday, January 15, or as soon as the council’s Licensing team updates the taxi meters.
The tables below show the current rates and new rates. The tables show regular rates, nighttime rates, and Christmas and New Year rates.