A proposed “taxi tax” being considered for the upcoming November Budget has raised concerns among a coalition of 15 charities and businesses, including Disability Rights UK. They have penned a letter to the Chancellor expressing fears that implementing VAT on taxi fares could have detrimental effects. The group argues that this new tax would make essential travel unaffordable for many people, disproportionately affecting vulnerable individuals in society.
In their correspondence, the coalition highlights the vital role minicab services play for various groups, such as survivors of abuse, individuals with disabilities, the elderly, and those in need of safe transportation. They emphasize that these services are crucial for independence, safety, and access to essential services, especially in areas with limited public transport options.
The letter underscores the importance of minicabs and private hire vehicles (PHVs) for disabled individuals to commute to work, access healthcare, and participate in community activities. It points out that a significant increase in fares could isolate people from necessary opportunities and support networks, ultimately hindering their independence and participation in society.
Additionally, the coalition notes that older individuals, particularly those with mobility challenges or residing in rural areas, rely on PHVs for transportation. They also raise concerns about the impact on nighttime travelers, including women and essential workers like caregivers, nurses, and cleaners, who often depend on taxis for safe journeys home.
Citing the current focus on addressing issues like violence against women, social isolation, and community safety, the coalition argues that imposing a Taxi Tax would move in the wrong direction. They warn that the proposed tax could significantly raise prices for essential trips, jeopardizing livelihoods in the PHV sector and beyond, and contradict the government’s pledge to avoid burdening working individuals with new taxes.
Notable signatories to the letter include organizations like the Survivors Trust, Disability Rights UK, the Night Time Industries Association, and the Down’s Syndrome Association, among others. In response, a spokesperson for HM Treasury stated that they are taking the issue seriously and reviewing feedback from consultations to provide a detailed response in the near future.