Decision details

To approve the proposed taxi fare increases

Decision Maker: Cabinet Member Safety and Communities

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

1. The Cabinet Member for Safety and Communities, is recommended to approve the proposed fare increase as set out below for consultation; and
2. Subject to there being no objections raised in accordance with the statutory provisions, to delegate authority to the Head of Public Protection to implement the proposed fare increase.
3. If there are objections, delegated authority is requested for the Head of Public Protection to make minor adjustments to the draft tariffs prior to formal consultation and/ or implementation, in light of any consultation responses received.

The proposed increases are shown below:

1. Approve a 7% increase across all tariffs in the maximum fares charged by Cheltenham licensed hackney carriages.
2. Approve an increase from £50 to £75 for the soiling charge.
3. Approve that Rate 2 is effective all day Saturday.
4. Approve that rate 4 is also effective Friday to Sunday, 7am to 7am for the November Race Meet.

Reasons for the decision:

To ensure the maximum fares chargeable reflect the costs which will be incurred by a good owner-driver who spends whatever is necessary to operate and maintain his hackney carriage to a high standard.

Alternative options considered:

The authority can decide not to increase hackney carriage fares as part of this review although this option is not considered desirable as it would result in an owner-driver not being able to fully recover the costs which will be incurred by them to operate and maintain their hackney carriage to a high standard.

 

Background information:

Under section 65 of the Local Government (Miscellaneous Provisions) Act 1976, the authority is empowered to set the maximum fares for hackney carriage vehicles licensed by it.

The last review was undertaken in 2023 when Cabinet approved a 10% increase. Since that review inflation has continued to increase along with a sharp rise in running costs, such as insurance. 

Hackney Carriage fares reviews are usually undertaken annually in accordance with this authority’s adopted calculation methodology. However, this methodology can no longer be used because certain data is no longer available to formulate the calculations in line with previous assessments.

A small number of representatives from the taxi trade, including members of The Cheltenham Taxi Drivers’ Association met officers of the council in November 2024 and the licensing team agreed to conduct a survey to ascertain if an increase was supported by the trade.  They also requested that Rate 2 be inclusive all-day Saturday, the soiling charge be increased and that Rate 4 also covered the November race meeting.

Survey

A 2 week survey was conducted.  There were 33 responses:

  • 85% agreed a review was required
  • 91% agreed that Rate 2 should include Saturdays
  • 97% agreed that Rate 4 should cover the November race meet
  • 88% agreed that the waiting time should increase
  • 2 suggestions that the soiling charge should be increased to £75

 

Rate of inflation 2023/24

According to the Office of National Statistics, the Consumer Prices Index (CPI) rose by an average of 7% over 2023/24.  The proposal therefore is to increase the maximum fares charged by hackney carriage vehicles licensed by this authority by 7%.

The revised fare card is attached at Appendix 2 reflecting the proposed increases in comparison with the current tariffs.

 

Declarations: none

Contact: Michelle Bignell, Licensing and Public Protection Manager Email: [email protected].

Publication date: 03/01/2025

Date of decision: 02/01/2025

Accompanying Documents: