Agenda item

To consider a report by the Head of Planning, Public Protection and Countryside Services (copy enclosed) updating members on the review of the current tariff charges for hackney carriage vehicles (taxis) and presenting a number of options for consideration.

RESOLVED, by majority vote, that the current table of fares be retained pending the outcome of the fare calculator review and referred back to the next meeting of the Licensing Committee for consideration.

The Public Protection Business Manager (PPBM) submitted a report (previously circulated) updating members on the review of the current tariffs for hackney carriage vehicles (taxis) and presenting a number of options for consideration.

Licensing Committee in September 2023 had considered a report on proposals to increase the current tariffs and authorised officers to consult on the implementation of a 5% increase (rounded to the nearest full %) in line with the Retail Price Index for Motoring.  Details of the statutory consultation had been provided together with the responses received, including a breakdown of respondents (trade/public), those who supported a 5% increase (14), those against a 5% increase (37) and those who supported an increase over 5% (9).  A comparison table of each tariff based on full miles had also been provided.  The fare review was in addition to the review of fares aligned to a tariff calculator review (recommended by the Licensing Consultant following the fare review in 2022) which was reliant on data from the licensed trade.  That work was ongoing with an initial meeting held in November 2023 with licence holders who had expressed an interest to contribute.

The PPBM guided members through the report detail, elaborating on the consultation responses and other considerations including the impact on both the taxi trade and taxi users as a result of an increase in the fares, possible indirect impact on the school transport budget, and costs associated with calibrating taxi meters.  Members were asked to consider the following options –

·       retain the current table of fares

·       retain the current tables of fares pending the outcome of the fare calculator review and refer back to a future Licensing Committee for consideration

·       approve the proposal of 5% increase as consulted

·       approve a different increase

Members considered the report and options available to them, highlighting the difficulties presented given the lack of a definitive view arising from the consultation responses.  Questions were raised with the PPBM who explained that the tariff calculator provided a methodology for calculating future fares, but it was reliant on sufficient engagement and meaningful data from the licensed trade.  The initial meeting with licence holders in November 2023 had been productive but more information was required, particularly from owner/drivers and the self-employed.

Councillor Hugh Irving stated that the request for an increase in fares had originated from one taxi proprietor with a large proportion of the trade against an increase and he also highlighted the negative impact an increase would have on service users and indirectly on school transport budgets.  His view was that the fare calculator review would provide the best basis for calculating future fares.  Consequently, Councillor Irving proposed that the current table of fares be retained pending the outcome of the fare calculator review and the matter be referred back to the Licensing Committee for consideration.  Councillor Joan Butterfield seconded the proposition, advising that she could not support a fare increase at this time.

During the ensuing debate the reference to any impact of an increase in fares on school transport budgets was challenged given that a set fee was negotiated in those cases.  The PPBM reported on the requirement for hackney carriages operating as private hire vehicles solely within Denbighshire to operate under the maximum tariff.  Whilst it was understood that current school transport contract prices were fixed, it was likely that the cost of future contracts would take into account any increase in the tariff set.  Councillor Gwyneth Ellis did not consider that matter should be taken into account when reaching a decision given that the price for school contracts was negotiated.  Councillor Ellis also raised the possibility of the Council relinquishing the setting of hackney carriage tariffs in favour of the taxi trade setting their own tariffs to reflect individual operating costs, particularly given the vast differences in the tariff charges across the country including regional variations.  The PPBM confirmed that the legislation stated only that the Council may introduce a table of fares.  However, virtually every council in the UK had a tariff charge table and the fare calculator review would give an indication based on costs and relevant local circumstances with more councils using that methodology to provide a robust process to devising fares.  Differences across the country were accepted given regional variations and local circumstances.

Members further discussed the proposition put forward by Councillor Irving and the importance of meaningful and representative engagement from the licensed trade in order for the tariff calculator to be effective and hoped that work could be carried out in a timely manner.  The PPBM provided assurances that best endeavours would be made to engage with the trade and secure sufficient data to give a true indication of costs and robust methodology for the fare calculator.  The matter could be brought back to the Committee’s next meeting in March 2024 to also include tariff comparisons with the other councils across North Wales.

The Chair restated the proposition, and upon being put to the vote it was –

RESOLVED, by majority vote, that the current table of fares be retained pending the outcome of the fare calculator review and referred back to the next meeting of the Licensing Committee for consideration.