South Tyneside Council has agreed to launch a 14-day consultation on proposals to increase hackney carriage taxi fares by 18 per cent across two standard tariffs, marking the first fare rise in four years.
The Licensing and Regulatory Committee approved the move on Friday, October 30, following a request from dozens of hackney carriage drivers. The proposals apply to taxis that can be hailed on the street or picked up at ranks, as well as those accepting pre-booked journeys.
Drivers seek fare review
Councillors considered the request from drivers aiming to bring the council in line with some borough private hire operators and certain neighbouring councils. The council last agreed to raise fares in August 2022, with the previous increase having taken place in 2019.
Licensing officers noted that South Tyneside's hackney carriage fares were amongst the lowest in the region, adding that the new proposals were "not significantly out of step" with other North East charges.
Cost pressures cited
A formal letter submitted to the council confirmed that a fares review had been requested following discussions with, and backing from, more than 30 licensed South Tyneside hackney carriage drivers. The letter noted that the cost of living and operating costs had "increased considerably" over the last four years and, in the context of inflation, argued that the 18 per cent increase represented a "real-terms increase of only around 1.2 per cent overall".
It added that the proposed fare increase was about "restoring purchasing power lost since 2022", with the aim of achieving a "reasonable balance between keeping fares affordable for passengers and ensuring that hackney carriage work remains commercially viable."
Tariff details and next steps
The rise is proposed for the 'initial hiring charge and distance elements' of tariffs one and two, covering the hours of 7am to 10pm and 10pm to 7am respectively. A further increase to the bus tariff was also put forward, affecting vehicles capable of carrying more than five passengers.
Councillors were informed that approximately 230 hackney carriage vehicles are currently licensed with the council, prompting several questions from committee members regarding potential negative consequences of the proposed rise.
Council licensing officers confirmed that the 14-day consultation period would provide both the taxi trade and the wider public with the opportunity to raise concerns. The consultation will feature a public notice inviting written submissions to the council's licensing department. Any objections received will be considered by the Licensing and Regulatory Committee before a final decision is reached.
