Taxi fares outside London could rise by a fifth if Uber wins court case

Uber was forced to raise prices in March after VAT was applied to rides booked through its app. Photograph: Matthew Horwood/Getty Images

Taxi firms outside London could be forced to hike their prices by a fifth if Uber wins a high court battle this week that would mean they pay VAT on journeys.

A ruling is expected to be handed down on Friday after the ride-sharing app sued Sefton council in Merseyside over VAT terms for operators outside London.