Efforts to clean up London’s black taxi fleet were boosted on Wednesday when the Government extended subsidies for new “green” vehicles for another year.
The Department for Transport said it would retain the “plug-in taxi grant”, which reduces the purchase price of a “zero emission capable” (ZEC) black cab, a hybrid taxi that can operate on battery electric power.
The grant, currently worth £7,500, had been due to end in April. In December it was announced that more than half of London’s licensed taxi fleet was zero emission capable.
The grant will continue to be available until April 2025, though will be reduced to £6,000 per vehicle, which is deducted at the time of purchase.
The grant was introduced in 2017 and has subsidised the purchase of more than 9,000 new taxis, of which 8,299 currently operate in London.
Technology and decarbonisation minister Anthony Browne said: “Taxis are a vital part of our transport network, so it’s great to be supporting our iconic black cab industry with further funding to help decarbonise their vehicles, part of this Government’s plan to back drivers.
“From Redbridge to White City, it’s now more likely than ever that your black cab will be green.”
Latest figures from Transport for London show there are 17,568 licensed taxi drivers in the capital – down more than 2,000 on pre-pandemic levels. There are a total of 14,764 licensed taxis – almost 4,000 fewer over the same period.
Steve McNamara, general secretary of the Licensed Taxi Drivers Association, said: “London’s licensed taxi drivers are proud to be leading the way in adopting zero emission electric taxis. Our members have invested record sums in these clean, green vehicles and the plug-in taxi grant has played a vital role in making this possible.
“Today’s announcement provides the certainty and support hard working taxi drivers and fleets need to continue investing in the future of this important sector, whilst helping to clean up our air and working towards net zero.”
Nationally, 12 per cent of taxis are zero emission capable. The value of the grant has been reduced to “deliver value for money for the taxpayer”.
Tory mayoral candidate Susan Hall had urged Transport Secretary Mark Harper to retain the grant after meeting the LTDA last month.
She warned there was a “serious risk of losing the black cabs from London's streets” if drivers did not continue to receive the “lifeline” to buy a new vehicle.
I have written to @Mark_J_Harper @transportgovuk to urge them to keep this grant going, we are at serious risk of losing the black cabs from London's streets and this cannot be allowed to happen. I implore the Government to act in order to keep the iconic black cabs on the road. pic.twitter.com/Ou2UNKeFYl
— Susan Hall AM (@Councillorsuzie) February 15, 2024
The new cabs can cost up to £100,000 once the costs of financing a loan are added.
Licensed taxis are exempt from the Ulez. But since 2018, all taxis licensed in London for the first time have been required to be zero emission capable.
