Taxi fares to rise

Taxi fares are set to rise across Worcester despite fears the price hike could damage the industry.

Worcester City Council has agreed to increase the maximum charges for Hackney carriage journeys, subject to a statutory consultation process.

The increases comes at the request of Worcester Taxi Association, which says it represents more than 200 drivers.

The changes include raising the flag fare – the initial hiring charge – from £4.30 to £5 on standard journeys (Tariff 1) and from £5.50 to £6.40 for Tariff 2, which applies from midnight to 7am and on Sundays, Bank Holidays and selected other dates.

The new rates are subject to a statutory consultation.

Niall McMenamin, principal licensing officer, said the council is responsible for setting the maximum amount that can be charged by Hackney carriages in the city.

“The fares are made up of an initial hiring charge, known as the flag fare, distance and time – so when it’s slow-moving traffic, Hackney carriage drivers aren’t losing out,” he told the council’s licensing and environmental health committee on Monday (June 15).

He explained that the last fare increase was introduced in 2022.

Mr McMenamin said: “Fuel prices have skyrocketed recently. But it isn’t just fuel prices you’ve got to take into account.

“It’s vehicle running costs, licence fees have increased each year, and the cost of living just generally.

“This committee has to balance the Hackney carriage drivers – they need to make a living – with travelling members of the public.”

Committee chairman Councillor Richard Udall raised concerns about the impact on passengers.

Cllr Udall said: “Our number one priority has to be the consumer.

“We’re asking the consumer, who is already hard-pressed with the cost of living, to find extra money for the use of a taxi.

“But we have to balance that with the need of the business to survive in today’s climate.”

He warned that higher fares might reduce demand and push customers toward cheaper options.

Cllr Udall said: “Taxi drivers could be forcing themselves out of business – they could be pricing themselves out of trade, especially as there is considerable competition out there in the form of private hire vehicles, who will and can do their job for considerably less, albeit on a pre-booked basis.

“I’ve got serious concerns about the impact this will have on the taxi industry. I don’t think they can understand or appreciate the difficulties for the consumer, or the fact the consumer does have a choice.

“This will potentially be damaging to the industry.”

Councillor Louis Stephen said: “I can’t get my head round this. Why, if you’re already under pressure, you’d want to put your prices up because suddenly you’re going to be at even more of a disadvantage.”

Mr McMenamin admitted: “Competition is fierce. The model of app-based private hire companies is to undercut taxis.

“Young people wouldn’t consider getting in a Hackney cab.”

Cllr Udall said most journeys from The Cross in Worcester are under a mile, meaning the typical fare will rise from £5 to £5.60.

A two-mile journey currently costs £7, compared to £6.72 in Malvern Hills, £6.20 in Wychavon, £7.60 in Birmingham, and £8 in Shropshire.

The fare rise will only apply to Hackney carriages – taxis that can be hailed on the street or hired from a rank.

Private hire vehicles, which must be pre-booked, are not affected.