Archive for category: Taxi News

In December 2015 a report was released by Conservative Richard Tracey called ‘Saving an Icon – Rescuing London’s Black Cabs from Extinction’ which set out an 8 point plan to save Black Cabs. The report makes some valid points to think about however it seems many people oppose to some of the steps Tracey has paved.

The report is 13 pages long, not ideal for those on the move or in the mood for a light read so below is a summary of the main points Tracey has made.

The London Assembly constructed a report call Future Proof which highlighted three main issues that are causing concern for those in the Taxi Industry and for the survival of the industry.

Technology

We now live in a technology driven society with more and more people demanding services to be available at the click of a button. App’s have been created to try and keep up with the demand such as Hailo, Gett and the TFL run site Cabwise however not everyone within the industry is a fan and prefer the more traditional practises.

Surveys on passengers and the general public have highlighted the fact that people would rather hail a cab via a dedicated app, be able to pay for their fare by credit/debit card and some also voiced that they would like to see the Oyster Card being a valid method of payment.

‘Absentee’ Regulator

The industry regulator, since 2000, is Transport for London (TFL). TFL’s main roles include protecting the consumer, arranging taxi ranks across London, setting out the provisions for taxi/private hire services and also setting the fares within the industry.

TFL has been under fire by drivers as they feel that the approx. £20m they receive annually in licensing fees are not being used productively to help the industry grow.

 High Entry Barriers

 The first barrier that many people face within the industry are the costs associated to the trade. To become a certified taxi driver a person will have to fund the following; application fees, examination fees, fees for DBS checks, licensing costs and test charges for the DSA which can all equate to over £1000.

The second barrier it the Knowledge of London test. This test is the equivalent of an undergraduate degree and can take up to three years for a person to pass. The test pass bar is so high that around 27% of people actually pass.

So what steps does Richard propose should be taken? 

•  The next Mayor of London should conduct a review of the taxi industry and its competition – Mainly focusing on the fare rates.
• Having a more pro-active regulator – Tracey points out that the Public Carriage Office (PCO) should become regulators again however they would still be a subsidiary body of TFL.
• Knowledge entry requirements should be reduced – Tracey feels the requirements should be halved in terms of what the driver should know and also reduce it to a one year process.
• Align taxi license fees with that of private hire vehicle licenses – Cutting the costs may also increase the number of licensed taxi drivers thus being able to accommodate the growing population.
• Loans for the purchase of new Hackney Carriages should be provided – Tracey feels that these should be interest free thus allowing drivers to purchase new up to date vehicle.
• The Ultra Low Emission Zone (ULEZ) for new taxis should be delayed to 2020 – more information on ULEZ can be found here; https://tfl.gov.uk/modes/driving/ultra-low-emission-zone?intcmp=26434
• Large developments should have new taxi ranks as standard
• Gain sponsorship to fund cashless technology in taxis – Surveys state that 40% more people would use a taxi if they could pay via Credit/Debit or even contactless.

 The report concludes and provided recommendations to the new Mayor of London however we will have to wait and see how much influence Tracey’s report has in the matter.

 The London Assembly has also conducted a report with more recommendations which have been put forward to the relevant parties to take into consideration for the benefit of London Taxi’s surviving another century.

Uber London Ltd has recently come under fire as the company’s accounts show they paid no corporation tax on profits made on the UK for 2014.

Uber have come forward to defend this stating that the low rate of tax is due them offsetting previous losses which is a legal practise.

In 2014 Uber London made £866,302 profits all of which, according to the company’s accounts, they paid no tax for. The company did however book £22,134 tax charge for the year and a spokesman claims was ‘deferred taxation relating to previous years’.

Sources say that The Independent had an accountant look at the books and they found that the company’s corporation tax was in effect ‘cancelled out’ due to the deductions they had for the costs of exercising share schemes with their employees. Employees making use of the share scheme would pay income tax and National Insurance of around 47 per cent which in turn provided the company with a deduction on corporation tax resulting in a zero figure.

A spokesman for Uber has denied that the company has used any loopholes or schemes to reduce its tax bill and claimed that Uber had paid “every penny of tax that is due”. “With corporation tax, past losses offset current and future profits – as is the case with Uber which made losses in the UK in previous years,” he said.

“This is an accounting principle to encourage investment that dates back to Benjamin Disraeli. It is not a loophole.”

“We are a young company – only three years old in the UK – that is investing heavily”.

“We are a significant net contributor to the local economy everywhere we go, creating new opportunities for thousands of professional drivers”.

“The lion’s share of every fare stays local, as it remains with the drivers who use Uber. And unlike the cash-in-hand past of this industry, we only take card payments so every fare is traceable and transparent.”

Multinational corporations have recently been under fire for exploiting loopholes and schemes to pay less tax such as Facebook who paid just £4,327 corporation tax in 2014.

In a bid to modernise the industry, Transport for London have suggested that cashless payments should be accepted in London Black Cabs.  Currently only around 50% of cabs accept card payments although 75% of people who use cabs say they would consider doing so if they could pay with a card.

Although there is currently no obligation for cabs to accept card payments consultations show that this would be a step forward as cashless payments are widespread almost everywhere else.

Taxi group United Cabbies are against the proposals however, commenting that Transport for London could not legally force drivers to accept card payments.

A decision is due to be made in early 2016.

Geely have announced an additional £50million investment in Ansty Park in Coventry to increase the factory by 50% to build a new breed of non-polluting Black Taxis.

London Taxi Company have now invested a total of £300 Million in their new site. The additional investment was announced during the visit of China President Xi Jinping.

The TX5 prototype has a small petrol engine that recharges a 400 kg battery and is said to be able to travel from Piccadilly to Manchester on one charge. The proptotype also has an extra passenger set making a total of 6 which brings it in line with the Mercedes Vito, LTC only competitor in London.

The TX is also set to have a panoramic roof, WiFi, charging points and a rear hinged door.

David Cameron added ‘’The UK is a world leader in the development of low emission technology and enhancing these research facitlities will build on the expertise I saw myself when visited this impressive site earlier this year.