A potential “taxi tax” proposal by Rachel Reeves is facing opposition from a coalition of 15 organizations, which includes Disability Rights UK. They have raised concerns with the Chancellor, warning that implementing VAT on taxi fares could have detrimental effects. The group argues that this new tax could render essential travel unaffordable for many individuals, particularly impacting vulnerable members of society.
According to the coalition, minicab services play a crucial role for various groups such as abuse survivors, people with disabilities, the elderly, and those in need of safe transportation at night. These services offer independence, safety, and access to vital resources, especially in areas with limited or inadequate public transportation.
The coalition emphasizes that a significant portion of the public, 71%, opposes the proposed Taxi Tax in November, highlighting the reliance of disabled individuals on minicabs and private hire vehicles for work, education, healthcare, and social engagement. They caution that a substantial increase in fares could isolate people from essential services and support systems, ultimately restricting their independence and participation in society.
Additionally, the coalition notes that older individuals, particularly those with mobility challenges or residing in rural areas, depend on private hire vehicles. They point out that the proposed tax would disproportionately affect nighttime travelers, including women and essential workers like caregivers, nurses, and cleaners, who often rely on taxis for safe transportation.
The letter further argues that the proposed policy conflicts with efforts to address issues such as violence against women, social isolation, and equality of access. It contends that raising the cost of safe transportation for essential journeys would move society in the wrong direction.
The coalition warns that the Taxi Tax would significantly raise prices for crucial trips and jeopardize livelihoods within the private hire sector and beyond. They highlight that a majority of the public views this tax as a burden on the working population, contrary to promises made in the government’s manifesto.
Notable organizations backing the opposition to the Taxi Tax include the Survivors Trust, Disability Rights UK, the Night Time Industries Association, and several others. In response to the coalition’s concerns, a spokesperson from HM Treasury stated that they are carefully reviewing feedback from consultations and will provide a detailed response soon.