Campaigners have called on Chancellor Jeremy Hunt to stop dithering and delaying and scrap the so-called taxi tax in his Spring Budget. They added that the 20 percent VAT price hike, which would increase journey prices on private hire vehicles and black cabs, will hit the most vulnerable the hardest.
Campaigners have accused Chancellor Hunt of dragging his feet on a promise to address the tax which he said he would address in early-2024 but has yet to take action on. If the new tax comes in, the Stop the Taxi Tax campaign said it will hit passengers to the tune of over £200 a year.
According to the campaign, the new Taxi Tax is unpopular with the majority of the public with seven in ten Britons opposing the new levy. The new tax has proved unpopular with some Conservative MPs too.
Paul Scully, Conservative MP for Sutton and Cheam, said: “We need quick, decisive action rather than risk sleepwalking into a seriously harmful tax on families and jobs.
“The taxi tax is not something a Conservative government should be sanctioned, especially in an election year when people and businesses are already struggling with high costs. We need to see action not further delay.”
A spokesperson for the Stop the Taxi Tax campaign, Gareth Cadwallader added: “The Chancellor must not row back on the promise he made in November – this is a critical issue for people up and down the country and any delay will cause further uncertainty, especially for the most vulnerable in society.
“We urge him to do the right thing by publishing the consultation now so he can take urgent action at the Spring Budget. This huge new tax on the cost of people getting a taxi or minicab will lead to higher prices on a safe trip home, impact jobs and stifle economic growth.
“More dithering and delay will only create uncertainty and risk the livelihoods of drivers across the country.”
A petition launched by the campaign on 38 Degrees is calling for the Chancellor “to step in and stop this tax at the earliest possible opportunity. In the Autumn Statement the Treasury confirmed it would consult on the issue in ‘early 2024’”.
They warned: “Low-income households and vulnerable groups are those who say they can least afford the new tax. Almost 8 in 10 low-income households who use private hire minicab services (78%) say they will find it hard to pay higher prices, alongside 68% of those users with mobility impairments.
“Without urgent and decisive action further uncertainty and concern will be created for drivers, consumers and businesses in every constituency across the country. The Chancellor and Government must publish the consultation now to provide enough time for action to be taken in the Spring Statement in March.”
