Taxi - TfL confirms changes to private hire operator licence fees

Transport for London has confirmed an increase to private hire operators fees.

The previous fee, last reviewed in April 2013, had two simple bands for private hire operators.  Less than 11 cars: £1,488, and 11+ cars: £2,826.

The new scheme will create 8 different fees categories and increase the fee for Operators with 10,001+ cars to £2,900,000 for a five year licence, if granted.

In a statement confirming the rises, TFL stated:

“The Capital's private hire industry has grown dramatically, from 65,000 licensed drivers in 2013/14, to more than 116,000 today. The number of vehicles has increased from 50,000 to 88,000 over the same period. With this growth, there has been a substantial increase in the cost of ensuring private hire operators fulfil their licensing obligations and in tackling illegal activity to keep passengers safe. It is estimated that over the next five years enforcement costs alone will reach £30 million, up from a previous estimate of £4m.

The total projected cost for licensing, enforcement and compliance for the taxi and private hire trades over the next five years is £209m.

The law allows the recovery of costs incurred for licensing, regulatory and enforcement activity through the licence fee process. All money generated through the process has to be spent on such activity.”

The Finance Committee also approved changes to licence fees for taxi drivers, taxis, private hire drivers and private hire vehicles. These fees were all frozen last year (2016/17).