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 proposed Table of Fares for public consultation.

RESOLVED, by majority vote, that the Licensing Committee –

(a)      retain the current table of fares, and

(b)      officers be instructed to prepare a report for the Licensing Committee to review the position in twelve months’ time.

The Public Protection Business Manager submitted a report (previously circulated) updating members on the review of the current tariffs for hackney carriage vehicles (taxis) and proposed Table of Fares for public consultation.

The current tariff had been subject to an ongoing review since mid-2023.  A public consultation on proposals to increase the tariff had provided a mixed response and in December 2023 the Licensing Committee had resolved to retain the current tariff pending the development of a fare calculator.  Since then, there had been little response from the licensed trade to assist in the population of the fare calculator and where gaps in data had been identified, other data had been replied upon to produce the fare calculator and methodology, which had been set out in the report together with the tariff produced and a comparison table of North Wales authorities.

Members were asked to consider the report detail, including the impact on both the taxi trade and taxi users as a result of an increase in the fares, and to either (1) retain the current table of fares, or (2) increase the tariff in line with the fare calculator, subject to statutory consultation.  If members supported a tariff increase and no objections were received following consultation the increase could be implemented but any objections received would need to be brought back before the Committee.  Any final tariff would be subject to a Lead Member Delegated Decision.

During debate members thanked officers for the comprehensive report and noted the measured and robust methodology used in developing the fare calculator.  Members carefully considered the report and options available to them and raised various questions with officers during their deliberations.  Particular reference was made to the apparent lack of appetite from the taxi trade for an increase in the fares and the impact on taxi users in the current financial climate.  There was some mention as to the timing and frequency of fare reviews and whether or not a regular incremental approach to fare increases would avoid a large hike in fees after a longer period.  It was noted that the tariff set the maximum fare permitted and a lesser fee could be charged.  The merits of undertaking a wide ranging consultation on the proposed fare increase and considering those views before making a final decision was also discussed.

Officers responded to members’ questions and comments as follows –

·       previous consultations with the taxi trade had provided a mixed response for and against fare increases and there had been no barrage of requests for a fare increase

·       the level of new licensed drivers remained consistent with previous years and the number of licensed drivers remained relatively constant

·       the fare calculator provided a means of calculating the average cost of operating a taxi business; the proposed increase was based on a detailed methodology

·       elaborated on the tariff produced as detailed in the report which provided the maximum fare which could be charged and would result in an increase from the current fare of £6.00 to a proposed fare of £6.94 based on a 2 mile journey

·       the proposed tariff would result in Denbighshire having the most expensive taxi fares of all North Wales local authorities and mid-table position in the national league table of taxi fares

·       the methodology used by other North Wales local authorities to calculate tariffs was unknown and those authorities last reviewed their fares between 1 – 4 years previously with one authority not having increased their fares since 2010

·       detailed the extensive consultation, in addition to statutory requirements, if that option was approved which would include significant engagement with the licensed trade, town/community councils and various organisations together with an online and social media presence linked to the county conversation portal

·       there was no set statutory timeframe to review tariffs which had previously been brought forward at the request of the taxi trade or members, and there had been an agreement to revisit the fares within 12 months following the last review

·       there had been a small number of requests for a fare increase relative to the number of taxi drivers, but it was difficult to ascertain the views of the wider taxi trade, similarly only a small number had engaged with the fare calculator review

·       it was likely that taxi proprietors could reclaim VAT on fuel; the most recent AA published fuel rates had been used in the methodology for the fare calculations

·       calculations submitted by Councillor Brian Jones which demonstrated that proposed fares for journeys beyond 10 miles would decrease in comparison to the current tariff were not disputed; the 2-mile fare tariff was used as a standard measure in taxi fare national league tables and calculations beyond that had not been carried out with figures solely reliant on the fare calculator

·       confirmed that taxi operators charged their own fares with varying amounts for the same journey subject to the maximum tariff set by the authority.

Following a detailed debate most members did not consider there to be an appetite from the taxi trade for an increase in fares.  It was suggested there would be merit in consulting on a fares increase in order to properly ascertain those views for further consideration before a final decision was made.  However, officers highlighted that members would need to support the proposed increase in the table of fares for it to go out to consultation because those fees would come into force in the event that no representations to the consultation were received.  It was confirmed that the consultation process would cost in the region of £1500 - £2000.

At this point a member of the public asked to speak.  The Solicitor advised there was no automatic right for a member of the public to speak at Licensing Committee which was at the Chair’s discretion.  However, there had been a fair debate and in the interests of fairness there would be no counter-view if permission to speak was granted.  The Chair declined the request.

Having considered the contents of the report and commented as necessary on the methodology documents as attached in the appendices, the Chair invited a proposition.  Councillor Hugh Irving proposed, seconded by Councillor Joan Butterfield, that the current table of fares be retained, and officers be instructed to prepare a report to be brought back to the Licensing Committee in twelve months’ time to review the position.

Upon being put to the vote it was –

RESOLVED, by majority vote, that the Licensing Committee –

(a)      retain the current table of fares, and

(b)      officers be instructed to prepare a report for the Licensing Committee to review the position in twelve months’ time.