Taxi fares are set to increase across a Midland city despite concerns that the price rise could harm the industry. Worcester City Council approved higher maximum charges for Hackney carriage journeys, pending a statutory consultation process. The rises came at the request of Worcester Taxi Association, which claims to represent more than 200 drivers.
New fare details
The flag fare – the initial hiring charge – will go up from £4.30 to £5 on standard journeys and from £5.50 to £6.40 for those between midnight to 7am and on Sundays, Bank Holidays and certain other dates. The new rates are subject to consultation.
Niall McMenamin, principal licensing officer, said the council was responsible for setting the maximum amount Hackney carriages in the city were allowed to charge. "The fares are made up of an initial hiring charge, known as the flag fare, distance and time – so when it's slow-moving traffic, Hackney carriage drivers aren't losing out," he told the council's licensing and environmental health committee on Monday, June 15. He said the last fare increase was in 2022.
Reasons for the increase
Mr McMenamin said: "Fuel prices have skyrocketed recently. But it isn't just fuel prices you've got to take into account. It's vehicle running costs, licence fees have increased each year, and the cost of living generally. This committee has to balance the Hackney carriage drivers – they need to make a living – with travelling members of the public."
Committee chairman Coun Richard Udall voiced his worries over the effect on passengers. He said: "Our number one priority has to be the consumer. We're asking the consumer, who is already hard-pressed with the cost of living, to find extra money for the use of a taxi. But we have to balance that with the need of the business to survive in today's climate."
Potential impact on demand
He warned steeper fares could hit demand and steer customers towards more affordable alternatives. Coun Udall said: "Taxi drivers could be forcing themselves out of business – they could be pricing themselves out of trade, especially as there is considerable competition out there in the form of private hire vehicles, who will and can do their job for considerably less, albeit on a pre-booked basis. I've serious concerns about the impact this will have on the taxi industry. I don't think they can understand or appreciate the difficulties for the consumer, or the fact the consumer has a choice. This will potentially be damaging to the industry."
Coun Louis Stephen said: "I can't get my head round this. Why, if you're already under pressure, you'd want to put your prices up because suddenly you're going to be at even more of a disadvantage." Mr McMenamin admitted: "Competition is fierce. The model of app-based private hire companies is to undercut taxis. Young people wouldn't consider getting in a Hackney cab."
Comparison with other areas
Cllr Udall said most trips from The Cross in Worcester city centre covered less than a mile, which meant the standard fare would increase from £5 to £5.60. A two-mile trip currently costs £7, in contrast to £6.72 in Malvern Hills, £6.20 in Wychavon, £7.60 in Birmingham, and £8 in Shropshire.
The fare increase will only affect Hackney carriages – cabs that can be flagged down on the street or picked up from a rank. Private hire vehicles, which require advance booking, will be unaffected.
