Cardiff council has announced plans to increase cab fares in the city by up to 41%. It comes after a sharp rise in fuel costs earlier this year with taxi firms saying they face a "critical situation" if changes are not introduced.
The proposal to raise fares by between 18% and 41% were first put forward by the council's cabinet in June with a public consultation taking place the following month. This consultation saw the council receive 226 letters of support from licensed drivers in the capital with many saying they were contemplating leaving the trade due to the financial pressures.
However the council also received one objection from Dragon Taxis, which represents more than 800 licensed drivers in Cardiff. They have put forward an alternative proposal which the council will consider before making its final decision.
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In the individually signed but identical letters of support received by the council in July drivers claimed the trade was in a "critical situation due to inflationary pressures that have hit harder than other industries". They added that many drivers had left the trade after diesel costs rose by 61% between March 2018 and July 2022.
Drivers also blamed the soaring average price of used cars, which rose by 32% between April 2021 and April 2022. Get the latest news from across Cardiff sent straight to your inbox for free by signing up to our newsletters.
"Many Hackney drivers have their plates on hold because they cannot make enough money to live on after expenses," the letter continued. "If the increase is not implemented our trade is on a downward spiral and there will be fewer Hackney taxis available."
The new proposal is set to be debated by the Council's cabinet at its meeting on Wednesday, September 28. If adopted fares would rise by different rates depending on the length of the journey, the time of day, and the day of the week.
The maximum charge for a 10-mile journey between 5am and 8pm from Monday to Friday would rise by 18.1% from £20.40 to £24.10. The same distance on weekday evenings (8pm-10pm) and between 5am and 10pm on Saturdays and Sundays would cost £26,70 – a rise of 30.1% on the current charge of £20.40.
On any day between 10pm and 5am, and all day on Bank Holidays, a 10-mile journey would rise by 41.6% from £21.40 to £30.30. In the local authority league table for two-miles fares Cardiff is currently 161st (£6) but the proposed rise to £7.50 would lift it to 45th out of 358 council areas.
However while the proposal has been supported by hundreds of taxi drivers across the city Dragon Taxis has submitted a counter-proposal suggesting a 13.43% increase for the average booking. The firm said: "A balance between what is fair for drivers and what is manageable for passengers has been the cornerstone of our applications." It added: "We also take the long-term view that the tariff increase must be considered carefully not to unfairly ‘punish' passengers to the extent that passenger demand is significantly impacted."
Cllr Dan De'Ath, the council's cabinet member for transport and strategic planning, said: "We are very aware of the impact that the rise in fuel prices and used cars has had on the licensed cab trade and in these areas the rises have been far higher than the standard rate of inflation. But we have to balance the evidence of rising costs and fairness for drivers with consideration for the customer."
In the report to cabinet members have been asked to decide between the original proposal or adopt the alternative suggestion from Dragon Taxis. Whichever proposal is approved a date of October 8 will likely be set for the changes to come into effect.
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