Sadiq Khan gives in to unions over taxi fare hike Business

Sadiq Khan gave in to union demands by agreeing to a 5.5% increase in London taxi fares.

The mayor sanctioned the increase to halt the exodus of drivers leaving the capital’s roads as Londoners face a cost of living crisis as inflation takes off.

The increase is considerably higher than the 4% originally proposed by the council and in line with requests from the London Cab Drivers Club, Licensed Taxi Drivers Association, RMT, Unite and the United Cabbies Group.

This is the first time that rates have been increased in two years. The new rates will be in effect from April 30. The minimum will increase by 60 pence to £3.80 and the meters will ‘spin’ faster.

Meanwhile, a surcharge for Heathrow passengers will rise by 80p to £3.60, with drivers adding £5.20 for those entering the airport drop-off area.

The number of black cabs in the capital fell to its lowest level in nearly four decades as drivers struggled to make ends meet during the pandemic.

Figures released last summer revealed that there were 5,000 fewer taxis on the road, compared to the previous year. Taxi drivers’ unions have complained about the lack of financial support from the government.

Heathrow has started charging all drivers £5 for dropping off passengers at the airport under a policy similar to Gatwick and Stansted.

Transport for London, the authority Mr Khan chairs and regulates black cab fares, said the hike was necessary “to recognize that taxi driver costs have risen significantly since the last fare change”.

A spokesperson said: ‘We want to make sure taxi drivers can cover their own operating costs and earn a living.

“It is important that the exam ensures that the role of taxi driver remains a viable career. Any reduction in supply will impact how quickly passengers can take a taxi around London. »

One of the biggest increases in metro, bus and train fares came into effect earlier this month.

Public transport fares in the capital rose 4.8%, the first since Mr Khan pledged to freeze prices in 2016. Domestic rail fares rose 3.8%.