A proposal to implement a “taxi tax” in the upcoming November Budget is receiving backlash from a coalition of 15 organizations, including Disability Rights UK. They have penned a letter to the Chancellor expressing their concerns. According to them, levying VAT on taxi rides would create a burdensome new tax that could render essential travel unaffordable for many individuals, particularly impacting vulnerable segments of society.
The letter emphasizes the critical role of minicab services for various groups such as abuse survivors, the disabled, the elderly, and individuals requiring safe nighttime transportation. It argues that these services are not a luxury but a lifeline, offering independence, safety, and access to crucial services, especially in areas with limited or no public transport options.
The coalition highlights public sentiment against the proposed Taxi Tax, citing that 71% of the population opposes its introduction in November. They stress that disabled individuals heavily rely on minicabs and private hire vehicles for independent travel to work, education, healthcare, and community engagements. Any significant fare increase could isolate people from necessary opportunities and support networks, eroding independence and social participation.
Furthermore, the letter points out that older adults, particularly those with mobility challenges or residing in rural areas, depend on private hire vehicles. It also underscores the impact on nighttime travelers, particularly women and essential workers like carers, nurses, and cleaners, who rely on taxis as a secure mode of transportation.
In light of recent declarations regarding violence against women and girls as a national emergency, the coalition argues that prioritizing community safety, social inclusion, and equitable access is crucial. They assert that escalating the cost of essential and safe transportation would move society in the wrong direction, especially at a time when such issues demand urgent attention.
The proposed Taxi Tax is described as a potential consumer tax that could significantly raise prices for essential journeys, jeopardizing livelihoods in the private hire vehicle sector and beyond. The letter notes that a majority of the public views it as a new tax on working individuals, contradicting the government’s manifesto commitments.
Noteworthy signatories to the letter include the Survivors Trust, Disability Rights UK, the Night Time Industries Association, the Down’s Syndrome Association, British Independent Retailers Association, Institute of Hospitality Community Transport Association, Re-Engage UK, and Ask For Angela.
In response to the coalition’s concerns, a spokesperson from HM Treasury stated that they are taking the issue seriously and evaluating feedback from recent consultations. A detailed response is expected to be released soon.